TOKYO -- Japanese Broadband giant Usen, which owns movie distributor Gaga Communications and runs the pioneering GyaO Internet platform is forecasting a massive loss of $557 million.

          Company said that for the current quarter to end of August revenues would fall from Yen 295 billion ($2.78 billion) to $2.69 billion.

          In April group decided to withdraw Gaga from movie acquisitions and financing following a string of B.O. flops. Having now evaluated Gaga's assets including the pic library, Usen wrote off $51 million from its books.

  In a statement, Usen said that it was "drastically reducing its risk in acquiring and producing contents, while concentrating corporate resource on the media platform business."

  Usen also recorded a loss of $24.5 million on its own contents, while forecasting further contents-related losses of $18.8 million.

  The biggest single hit to the bottom line – a huge $351 million -- came from Usen's decision, announced on July 2, to turn staffing firm Intelligence into a wholly owned subsidiary via a stock swap, with the accompanying costs of goodwill amortization. Usen currently owns a 38% stake in the company. 

© Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.

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