The fiscal year that ended March 31 was difficult

Luc Besson finally realizes his old project in audiovisual production. EuropaCorp, his film mini-major, yesterday announced the acquisition of Cipango, the producer of the television series "xiii" or "Les Bleus" and unit fictions such as "Manon Lescaut". Several aspects have led the filmmaker who was looking for the "good" partner for months to focus on the production, previously controlled by Edouard de Vésinne and Thomas Anargyros House. Seventh producer of fiction in France, the company - which is profitable-a already a size "attractive" (she realized a turnover of EUR 14.6 million in 2009) and a strong potential for development. The image of EuropaCorp, it has also already proven international with the sale adapted "xiii" series of the comic strip, in many countries. EuropaCorp, who initially will hold 75 of the capital does not disclose the amount of its acquisition. Only indication: a part of the enhancement of Cipango is conditioned to the realization of the "business plan" established with the founders of the company and the performance of the next four years.

Recurring revenues

After this operation, Edouard de Vésinne and Thomas Anargyros will take the reins of the pole EuropaCorp television. In reality, Luc Besson was not expected to complete this acquisition to push its pawns in audiovisual production and began, in parallel, work on the development of two international series. The first is derived from the three films "Carrier", which have a global success, and will represent a cost of approximately 28 million for 12 or 13 episodes of 52 minutes. The other project is a series of animation based on the character of "Arthur". After the repurchase, part of EuropaCorp film production could be valued as series.

Strategic diversification

For the French major, this diversification is "strategic", said Pierre Ange Le Pogam, co-founder of EuropaCorp. Upon entering the audiovisual production, the studio table income much more recurrent than those produced by the cinema. "The economy of the fiction is very different from that of the films." "This decreases overall risk taking of the group," he added.

The fiscal year that ended March 31 was difficult. Despite a 30 increase in estimated turnover, operating margin will be lower than in the previous year. In fact, on several films such as "The missionary" with Jean-Marie Bigard or "from Paris with Love" with John Travolta, the entries in French classrooms were not up to expectations. Prudent policy on depreciation (60 of the cost of film depreciated at the exit room) also weighs on the accounts. "The profitability of a film is to be assessed over a period of seven to ten years, since it must take account of the passages of TV and video sales", said Jean-Julien Baronnet, the Director General, just for the renewal of a line of credit of EUR 100 million. According to him, the value of company EuropaCorp would be around EUR 200 million, given a valued catalog 100 million of stock of production estimated at 140 million and a debt of 70 million. The stock market, she values the society a little less 115 million.