Film delay threat to Pinewood revenues

British film studio business Pinewood Shepperton today warned that further delays to major productions could threaten revenues this year.

The company, which has hosted the production of blockbusters such as The Bourne Ultimatum and Harry Potter and the Order of the Phoenix this year, told the City in June year-on-year revenues would be flat due to films entering production later than expected.

But Buckinghamshire-based Pinewood today said that more delays since then would result in falling revenues in 2007, unless deferred productions could be replaced.

Shares in the firm were 2% lower as the warning overshadowed a 39% rise in pre-tax profits to £2.9m (€4.29m) in the first half of the year.

The firm said there was “increasing interest” in film production activity in the UK following the January introduction of a new film tax credit to lure international film-makers back to the UK.

But Pinewood added there would be “uncertainty over the timing and level” of film activity in mid-2008 ahead of negotiations between studios and writers and actors’ guilds in the US, with talks expected to focus on thrashing out a deal on revenues from downloaded films.

The company, which is looking to diversify its business away from more volatile film revenues, also saw first-half television revenues fall 15% due to “timing differences” on several productions.

Television shows produced at Pinewood over the period included The Weakest Link, the IT Crowd, and Bremner Bird and Fortune.