Crédit Agricole Indosuez Cheuvreux Recommends Intertainment Shares
Munich, April 18 - Crédit Agricole Indosuez
Cheuvreux, the investment affiliate of the large French bank Crédit Agricole,
has recommended Intertainment AG shares. In so doing, the experts of the
institute have joined the long line of analysts who regard the Munich-based
media corporation as undervalued. Cheuvreux expects Intertainment to increase
its annual turnover from 28.7 million euros in 1999 to 459.3 million euros in
2002. For the same period, Cheuvreux forecasts an increase in its gross result
before tax and interest from 9.4 million euros to 134.8 million euros. On the
basis of this, the bankers calculate a fair stock market price of 127.52 euros.
Cheuvreux thereby grants the Intertainment shares an upward potential of more
than 30 percent compared with their current level. Taking the average PE ratio
of Intertainment's competitors as the basis of its calculation, Cheuvreux
arrives at a fair stock market price as high as 175.05 euros.
Investment affiliate Cheuvreux considers
Intertainment's turnover plan to be thoroughly realistic. Its experts say that
one must not forget that up until last year the Munich-based company drew the
lion's share of its turnover from the nationwide licensing of TV movies on video
and in the Free TV sector. As of this year, on the other hand, Intertainment is
marketing a series of motion pictures throughout Europe along the entire sales
chain. The excellent returns achieved when the first of these films – "The
Whole Nine Yards" with Bruce Willis – hit movie theaters is a taste of
the success to be expected from the whole series, according to Cheuvreux. In the
U.S.A. the action-packed comedy shot straight to the top of the movie charts.
The French experts also see potential in
Intertainment's 26% share of the U.S. Internet corporation SightSound.com.
Intertainment has taken its "first steps toward diversification," and
has shown its "innovative spirit" by doing this, they announce.
SightSound.com offers visitors to its website the opportunity to download films
for rental or sale and also functions as a virtual video rental store.
Information on
Intertainment:
Munich-based Intertainment AG is a media
corporation specializing in film licensing and merchandising activities.
Preliminary figures for the fiscal year 1999 show growth in revenues of 91.5
percent to DEM 56.1 million for the media group, which is listed on Frankfurt's
New Market. This growth was accompanied by an increase in results from ordinary
business activities of approximately 130 percent to DEM 20.2 million. In the
current fiscal year, Intertainment is expecting a boost in revenues to
approximately DEM 290 million and results from ordinary business activities
totaling more than DEM 76 million. This jump in revenue will be generated in
part by the expansion of business activities throughout Europe.
Press Contact:
Intertainment AG
Claudia Wilmans
Widenmayerstrasse 49
D - 80538 Munich
Tel.:
++49 89 / 21 69 9-0
Fax: ++49 89 / 21 69 9-11
E-mail: cwilmans@intertainment.de