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James Bond spices up Amalgamated outlook

Updated: 2006-10-21 17:35
(Agencies)

The new James Bond movie is helping set the scene for an encouraging outlook for Greater Union-owner Amalgamated Holdings this year, despite soft first-quarter trading conditions.

The cinema and hotels operator on Friday reported a 7 per cent increase in pre-tax profit to $19.9 million for the first three months of 2006-07.

Managing director David Seargeant said the result was driven by a strong performance by Amalgamated's hotel business, which includes Rydges Hotel & Resorts and Thredbo Alpine Village, and a great improvement in its German cinemas.

"With a relatively soft film line-up and very disappointing natural snow conditions at Thredbo, the result is particularly pleasing," Mr Seargeant told the annual meeting in Sydney.

But blockbuster movies such as The Devil Wears Prada had led to an improvement at the box office in October, and a strong line-up of films, including the new Bond flick Casino Royale, was also making for an encouraging outlook, he said.

"The outlook for the remainder of the year is encouraging, with a strong line-up of films over the Christmas holiday period and a continuing positive trading environment for our hotels and resorts," he said.

"The new Bond film is sounding very, very exciting and I think whenever you get a new Bond there's always a heightened interest."

Amalgamated will also screen the George Miller-produced Australian film Happy Feet, which is due to open on Boxing Day, and sequels such as Shrek 3, Pirates of the Caribbean 3 and Ocean's Thirteen, during the American summer.

Amalgamated delivered a 30.3 per cent increase in net profit to $59.4 million last financial year, but declined to provide specific profit guidance for fiscal 2007.

Before one-off items and tax, it made a record net profit of $73.7 million in 2005-06, up 13.5 per cent.

During the year, the company bought Sydney's landmark Gowings building and Mick Simmons building, alongside the historic State Theatre complex on Market Street, a property it already owned.

 
 
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