A drop of nearly 50 percent was reported in the net income of the Egyptian Media Production City (EMPC) over the year 2001. Financial results for the year 2001 show that net income totaled 27.2 million Egyptian pounds ($5.87 million), a 48.3 percent fall compared to the EP52.7 million earned over the year 2000. Preliminary figures, issued in January 2002, reveal that the company was expecting somewhat better results, at around EP33 million.
The bottom line drop was brought by a 3.4 percent decline in revenues, from EP64.7 million earned in 2000 to EP62.5 million in 2001, EMPC’s financial statement to the CASE disclosure unit indicates. This was compounded by a 20 percent increase in general and administrative expenses, reaching EP33.7 million in 2001 compared to EP28.1 million in FY00, and a 17 percent rise in operating expenses, from EP27.9 million in 2000 to EP32.7 million in 2001. Thus a higher ratio of operating expenses to revenues was recorded, rising from 43.2 percent in FY00 to 52.4 percent over the past year.
Since the complex is currently generating most of its revenues off its bank deposits, the factor bearing the greatest influence over the profit squeeze was a 63 percent decline in cash positions, from EP478.8 million in year-end 2000 to EP175.6 million the following year. This brought down interest income 26.6 percent to EP28.9 million, compared to EP39.4 million in 2000.
Second only to Hollywood and Bombay, Cairo has been the powerhouse of the Middle East film industry for decades. In a bid to preserve its stature as the cinema capital of the Arab world, the Egyptian government had decided in 1997 to establish the region's most comprehensive production facility.
The EMPC complex, which enjoys a free zone status, owns two million square meters in the 6th of October city, within the compounds of the Media Free Zone. Its main activity is hiring out media production facilities to television and cinematic companies, and to a lesser extent conduct its own production.
The city currently operates 11 indoor studios and various outdoor areas. The company's main project, the Mubarak International Studio Complex, housing 18 state of the art studios, was inaugurated in mid-June. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
