The management of TV-Loonland has released its annual accounts for the year 2007. Due to the restructuring agreement closed with the company´s bankers, the overall situation of the business has been stabilized.
In particular, the loss for the year has been significantly reduced and a positive net operating cash flow generated.
Despite being a difficult year for the group, having to deal with the consequences of legacy management issues, the restatement of the 2005 accounts and the very significant loss in 2006, TV-Loonland has seen considerable improvements in its core children's animation business.
Within its third quarter interim report TV-Loonland announced the intention to sell its 61.7 percent stake in Metrodome, the UK AIM listed subsidiary, and therefore is now treating said business as a discontinued operation within the annual accounts 2007.
Whilst within the continuing operations, the total revenues decreased from KEUR 6,387 to KEUR 5,328, the 2006 figure included KEUR 2,414 of "one time only" revenues. Thus, on an operating basis adjusted revenues improved by KEUR 1,355.
The result from continuing operations was a loss for the year of KEUR -- 2,970 compared to a loss of KEUR -- 21,250 in the prior year. The loss of the year includes a pro rata loss of KEUR -- 736 resulting from the discontinued operation and accrued interest of TEUR 1,754, which was converted on January 4, 2008 into equity. Adjusted loss from continuing operations excluding non cash interest expense is KEUR -- 853.
This represents the best result that the group has delivered since 2001, the year following its IPO and reflects the progress that the group has made and is continuing to make.
These improvements are also reflected by the business generating a net positive cash flow out of its operating activities of TEUR 98, and also overall having an increase in funding during the year.
In order for the business to continue its recovery the core business has embarked on a series of cost reduction measures, which so far in 2008 included the issuance of termination notices to nine Munich-based staff, effective the end of June.
The business will continue to have an operation in Munich, but it is appropriate that all of the measures that the group is taking that our future shape across all of the offices better reflect the ongoing business and potential business opportunities.
With the new properties and brands that TV-Loonland has brought to market in the past year, namely RAYMOND, PENELOPE and PAT & STAN, which have all been very well received, TV-Loonland is now building its business for the future.
At the same time, TV-Loonland is building on a significant Licensing and Merchandising program for its property LITTLE PRINCESS, which has been sold in 160 countries so far, to operate alongside the existing Pettsson & Findus Licensing and Merchandising program.
Further, TV-Loonland keeps on investing into the development and co-production of new properties. In this respect, the company has greenlit production of two new seasonal specials of its hit property LITTLE PRINCESS, which can be sold alongside the existing two seasons.
During the year TV-Loonland also reviewed its library of properties in order to determine those that will best fit with the ongoing business, and as a result the company is currently in negotiations to sell certain properties.
TV-Loonland is very pleased to report that there has been made significant progress in the proposed sale of its stake in Metrodome and whilst there is no guarantee of a successful outcome at this stage, the company is confident that we will be able to issue a further announcement regarding this matter in due course.
The proceeds from aforementioned sales will be used to repay the remaining bank debt, so that the group would be debt free during the course of Q2 2008.
So far in 2008, the core business is trading in line with its predictions.
The annual report is available for download on the company's Investor Relations Homepage at http://ir.tv-loonland.de.
