Apparently, business is good for Pinewood Atlanta studios. According to a press release on the Pinewood Studios website posted Feb. 10:
“Since the publication of the Interim Results on 1 December 2015, film revenues have benefited from a robust growth in ancillary sales whilst also continuing to operate at high stage utilisation levels.
“Television revenues have performed well in the second half of this financial year.
“Media Hub revenues have also performed strongly as a result of high occupancy.
“The company has continued to develop its international revenues, with strong growth from its joint venture in Atlanta, Georgia.
“The company has continued to develop its international revenues, with strong growth from its joint venture in Atlanta, Georgia.”
“Media Investment revenues, as anticipated, have grown in the second half of this financial year.”
But it begs the question: why is Pinewood Studios selling a profitable business?
But it begs the question: why is Pinewood Studios selling a profitable business? It sounds like they are interested in making more money by creating their own content:
“Since the publication of the Interim Results on 1 December 2015, film revenues have benefited from a robust growth in ancillary sales whilst also continuing to operate at high stage utilisation levels.
In addition, news reports suggest that Pinewood Studios is looking to create their own content. “The news comes as Pinewood has enjoyed strong revenues for its production facilities, thanks to the likes of “Star Wars: The Force Awakens” and “Spectre” [the new James Bond movie]. The company has, however, long sought to leverage its bricks and mortar infrastructure to get more control of IP and upside in the actual content produced in its facilities,” according to an entertainment business website, Deadline.com.
From the company’s news release: “The board believes that the company, as the world leading studio and production services operator, has significant future growth potential.
“The objectives of last year’s share placing, which was successfully completed on 17 April 2015, were to raise proceeds of £30m [a little over $43 million] to part fund phase one of the … development [plan] and also to create a more diversified shareholder base that would be able to support the company through subsequent phases of growth and enable the company to move up to a full listing on the main market.
“The shareholder register, however, remains tightly held, which has continued to stifle liquidity in the shares and has prevented the company from achieving its aim of obtaining a main market listing.
“The board has now determined that it is appropriate to evaluate alternative opportunities to maximise value for the company’s shareholders and to build on Pinewood’s successes to date. We believe there is a requirement for a funding strategy to be in place to fully realise the company’s future potential (for instance to fund [development plan] phases two and three). Accordingly, Rothschild [investment bank] has been appointed to assist with a strategic review of the overall capital base and structure, which could include a sale of the company.”
However, the CEO of Pinewood Studios, Ivan Dunleavy says the future looks good for Pinewood Atlanta Studios: “As we come close to the end of the financial year, the benefits of our long-term strategy for the business are again being realised. The company continues to experience strong demand for its facilities and services as we look forward to the new financial year.”
