HONG KONG – Hong Kong film and TV conglom Mei Ah Entertainment plunged from profits of HK$21.9 million ($2.80 million) in 2007 to losses of HK$83.4 million ($10.7 million) in the year to March 2008.

          Much of the financial damage was done by a revaluation of convertible loan notes, but by other measures too the company slipped.

          Revenue fell 25% to HK$103 million ($13.2 million) and net profits after exceptional items was down from HK$17.1 million ($2.2 million) to HK$2.96 million ($380,000.)

Although Mei Ah is an investor in "Red Cliff" and recent "Empress and the Warriors" it described the film market for Hong Kong movies as "relatively stagnant." Piracy is eating into its video business. "Following the increasing popularity of copyright infringement behavior the business of sale and distribution of video discs has become difficult, it said.

Having cut its interest in production company BIG Media, Mei Ah'sfilm exhibition and licensing businesses saw combined revenues more than halved from HK$49.5 million ($6.35 million) to HK$23.2 million ($2.97 million.)

          Company is putting a growing emphasis on TV, where it now operates three channels in Hong Kong and one in Singapore. Revenues increased from HK$58.8 million ($7.54 million) to HK$64.2 million ($8.23 million.)

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

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