24/02/2005

The family-owned media group Bonnier, owner of the Swedish film company Svensk Filmindustri and of SF Bio, has announced in its year-end report 2004 that the operating profits for its entertainment division were down SEK 168M from SEK 414M in 2003 to SEK 246M in 2004.
According to the group’s statement, this decrease is “primarily attributable to the sale of the TV station LNK in Lithuania, in addition to the fact that Svensk Filmindustri and SF Bio reported slightly lower earnings than the very impressive profit in 2003 which included the last film of the Lord Of The Rings trilogy”. Sales for Bonnier Entertainment were also down 2% from SEK 3,561M in 2003 to SEK 3,491M in 2004.
Bonnier Entertainment which comprises film, TV, music and radio operations in Scandinavia, also stressed in its Financial statement bulletin 2004, the offer pending from its cinema division SF Bio* to acquire from Sandrew Metronome its Swedish cinemas to make it the biggest cinema chain in Sweden. “SFD Bio signed an agreement with the owners of Sandrew Metronome Sweden AB to acquire this company with its 22 cinemas and annual sales of about SEK 200M”, stated the Bonnier group. “Before Christmas, the Swedish Competition Authority stated that it planned to demand a suspension of the sale. Although Sandrew Metronome and SF Bio do not concur with this view of the Swedish Competition Authority regarding the effect of the deal on competition, it has been agreed that the seller may over a period of time ascertain whether there is any interest among other potential buyers. Should it transpire that this is not the case, SF Bio’s offer remains in place. SF Bio and Sandrew Metronome have not withdrawn their application to the Swedish Competition Authority”.

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Last week which was the deadline for any new bidding for Sandrew Metronome’s cinema assets, Swedish art-house distributor, exhibitor and producer Triangel Film also put an offer on the Swedish cinema chain.

*SF Bio owns 33 cinemas with 209 screens in Sweden. Its 2003 market share was 52%. SF Bio also owns 50% of Svenska Bio, another cinema chain with 10% of the market.