Troubled Force loses $47m

By SIMON HENDERY

Cinema and property company Force Corporation has announced a $47 million annual loss after writing off $39 million associated with its troubled Argentinian investment.

The company said its full-year earnings before depreciation, interest, taxation and writedowns were $1.5 million. Cinema earnings of $4.5 million were offset by losses from other parts of the business, notably Planet Hollywood and reduced property earnings.

Total operating revenue was $53.4 million.

Force's 50 per cent Argentinian joint venture business, Village Cinemas SA, earned what Force described as a respectable $US12.2 million before interest, depreciation and tax, down 29 per cent on last year.

The company is renegotiating its New Zealand and Argentinian debt. One of the conditions of the renegotiation is that Force raises $30 million in new equity.

The company's 50.2 per cent shareholder, Sky City, said yesterday that it was prepared to underwrite the capital raising if certain conditions were met.

Force said its cinema business suffered last year from a lack of quality film releases. The industry was off to a strong start this year thanks to movies such as Pearl Harbor, Moulin Rouge and Shrek.

Force shares closed down 1c yesterday, at 9c.