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Annual Report 2008 Exhibition Cinema 3 3 Next Radio

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Annual Report 2008 Exhibition Cinema 3 3 Next Radio FILM CORPORATE THEME FILM CINEMA BOARD & SENIOR FINANCIAL ADDITIONAL RADIO PRODUCTION DIRECTORY REVIEW PARKS DISTRIBUTION EXHIBITION MANAGEMENT REPORT INFORMATION AND MUSIC ANNUAL REPORT 2008 REPORT ANNUAL 9 3 PP XX CC 3 3 START END NEXT CONTENTS PRINT EXIT PREVIOUS 99 REVIEW CORPORATE 3 PREVIOUS PROFILE OuR comPany of EntertaInmEnt and mEdIa busInEssEs Founded by Roc Kirby, Village Roadshow first commenced business in 1954 in Melbourne, Australia PARKS THEME 9 START and has been listed on the Australian Securities Exchange since 1988. Still based in Melbourne, Village Roadshow is a leading international entertainment and media company with core businesses in Theme Parks, Film Distribution, Cinema Exhibition, Radio and Film Production and Music. All of these businesses are well recognised retail brands; together they create a diversified portfolio of entertainment and media assets with strong cash flows. DISTRIBUTION FILM 9 9 END Village Roadshow Theme Parks has – Australian Outback Spectacular; Overseas attractions include: tHEmE been involved in theme parks since – Paradise Country; and – Kelly Tarlton’s Antarctic Encounter EXHIBITION CINEMA PaRKs 1989 and is Australia’s largest theme – Warner Roadshow Studios. & Underwater World in Auckland, 3 3 park owner and operator. Sydney Attractions Group includes: New Zealand; – Wet’n’Wild Water World in Kapolei, NEXT On Queensland’s Gold Coast – Sydney Aquarium; we have: – Sydney Wildlife World, recently voted Hawaii, USA; and – Warner Bros. Movie World; Australia’s Best Family Attraction; – Due to open in 2009, Wet’n’Wild – Sea World and Sea World Resort; – Sydney Tower Observatory and Water World in Phoenix, Arizona USA. – Wet ‘n’ Wild Water World, one of the Skywalk; world’s largest and most successful – Manly Oceanworld; and RADIO water parks; – Koala Gallery on Hamilton Island. C CONTENTS Originally started by Village Roadshow Roadshow is a major force in film ABC, BBC, The Weinstein Company FILm in the late 1960’s, Roadshow Films distribution in all mediums in and Village Roadshow Pictures. dISTRIBUTIOn has grown into Australasia’s largest Australia. Roadshow enjoys long The Company also has film independent film distributor– standing distribution agreements and distribution operations in Singapore distributing films to all cinemas relationships with key film suppliers, and Greece. nationally as well as to major retailers such as Warner Bros. (since 1971), AND MUSIC PRODUCTION FILM with DVD. P PRINT Showing movies has a long tradition further 157 screens at 17 sites in and, with other international CInEMA with Village Roadshow, having started Singapore, Greece and the Czech investors, will this year open the in 1954 with the first of its drive – in Republic – over 38 million customers first of its premium luxury cinema EXHIbItIOn cinemas. Today Village Cinemas jointly annually worldwide. The Company is concept, Village Roadshow Gold owns and operates 507 screens leading the world with the emerging Class Cinemas, in the United across 50 sites in Australia, with a growth category of premium cinemas States market. MANAGEMENT & SENIOR BOARD X Village Roadshow started Australia’s FM radio networks, Today FM and and up to 819,000 monthly unique EXIT RADIO first FM radio station, 2Day FM, in Triple M. With two radio stations in browsers online, being the number 1979. Now, through a majority each key mainland capital city and a one station in Sydney, Melbourne, shareholding in the Australian listed strong line-up of stars driving Adelaide and Perth and second Austereo Group Limited, the Company continued rating success, Austereo in Brisbane.* owns and operates Australia’s leading has over 4.5 million radio listeners *Source: Nielsen Media Research – survey 4 2008 REPORT FINANCIAL Village Roadshow has been involved in Pictures, having won 8 Academy blockbuster hits such as The Matrix FILm the movie business since the 1960’s. Awards and 3 Golden Globe Awards trilogy, the Ocean’s trilogy, Charlie Jointly owned with other leading for films including Training Day, and the Chocolate Factory, Happy Feet PRODUCtIOn investors in the entertainment Mystic River and Happy Feet. Village and, most recently I Am Legend and AND MUSIC industry, Village Roadshow Roadshow Pictures has produced Get Smart. Entertainment Group comprises: more than 60 films in the past 10 – Concord Music Group, one of the – The leading independent Hollywood years with global box office takings world’s largest independent music INFORMATION ADDITIONAL movie producer, Village Roadshow of over US$8.7 billion including companies, with over 5,000 albums. CoNTENTS 01 Corporate Review 10 Radio 15 Financial Report Village Roadshow Limited DIRECTORY 04 Theme Parks 12 Film Production 103 Additional Information ABN 43 010 672 054 06 Film Distribution and Music 108 Corporate Directory 08 Cinema Exhibition 14 Board And Senior Management REVIEW CORPORATE 3 PREVIOUS CORPORATE REVIEW PARKS THEME 9 START From left: JOHN R KIRBY Chairman ROBERT G KIRBY Deputy Chairman GRAHAM W BURKE DISTRIBUTION FILM 9 9 Managing Director END to our shareholders, EXHIBITION CINEMA 3 3 NEXT We are pleased to report that Village A summary of the Company’s financial We also grew our aquarium operations Roadshow Limited has again produced performance is set out in the table on the with the purchase of an Auckland attraction. a solid profit result for the year ended following page and full financial details The Company continued the refurbishment 30 June 2008. Our normalised profit after can be found in the Company’s and the and rationalisation of its existing cinema RADIO tax was up 10% to $62.2 million1 on the Group’s financial report following C chain and has embarked on the digital back of strong underlying divisional on page 15. transformation of selected sites offering CONTENTS trading results. The year was highlighted by exceptional the state of the art digital technology Net profit after tax was $256.9 million trading from Cinema Exhibition, Film including 3D digital cinema projection. for the year ended 30 June 2008 compared Distribution and Radio. On a like for like We also continued the work of rolling out to $45.1 million for the prior year. This basis, these divisions increased their our Gold Class cinema concept in the USA, 2 included after-tax profit of $194.7 million earnings before interest, tax, depreciation leading in this emerging growth category AND MUSIC PRODUCTION FILM in 2008 from material items and and amortisation (EBITDA) from their 2007 of premium, intimate cinemas with the P discontinued operations, mainly levels by 13.8%. first two sites in Chicago, Illinois and arising from the de-consolidation Seattle, Washington opening by the end PRINT We also completed the merger of our Film of the Film Production division. Production division with Concord Music of this calendar year. In addition to the fully franked dividends Group, realising $53.8 million in cash, and In August 2007 we completed the of 9 cents per Ordinary share and 12 cents we moved to 100% ownership of Roadshow acquisition of the remaining 50% of the per Preference share paid in December Films and Sydney Attractions Group. Company’s Film Distribution arm, MANAGEMENT & SENIOR BOARD 2007, the Company paid its very first fully Our portfolio of businesses continues Roadshow Films, consolidating our franked half-year dividend of 7.5 cents per interest in a business which has achieved X to produce strong cash flow and earnings. share in April 2008. Furthermore, in partial Growing and driving EBITDA in all our strong and consistent growth and holds EXIT recognition of the cash received on the businesses is a major focus for the Board. a commanding leadership of the theatrical merger of our Film Production division and DVD distribution markets in Australia From an operating perspective, our with Concord Music, a fully franked special and New Zealand. businesses continued to benefit from a dividend of 10 cents per share was also concentrated focus on improving sales The Company’s Australian Securities paid in April, 2008. REPORT FINANCIAL margins, exercising cost restraint and Exchange listed radio division, Austereo Total dividends paid in the 2008 financial managing underlying operational cash Group Limited, enjoyed another successful year amounted to 26.5 cents per Ordinary flows. With these robust cash flows and year, maintaining and increasing its share and 29.5 cents per Preference share. a strong balance sheet we have invested leadership in capital city audiences3, in Capital management initiatives during in further growth opportunities and sales market share and online radio sites4. the year saw the Company complete a incremental acquisitions in core businesses. Austereo is also well prepared for the launch of digital radio in Australia in 2009. Preference share buy-back at a cost of This included investing in new rides and approximately $34.7 million and an attractions at the Company’s existing INFORMATION ADDITIONAL Ordinary share buy-back of approximately Gold Coast theme parks as well as the $39.9 million. successful completion and subsequent In total $142.0 million has been returned integration of our take-over of Sydney to shareholders during the year in share Attractions Group Limited following buy-backs and dividends. attaining control in February 2008. To top off the recent returns to shareholders, We have also expanded our Theme Park business with acquisitions of water parks the Directors of the Company have also DIRECTORY recommended a fully franked final in Hawaii and Phoenix in the USA together dividend of 9 cents per Ordinary share and with a development site on Queensland’s 12 cents per Preference share, payable in Sunshine Coast. All these will be early December 2008. rebranded Wet ’N’ Wild next year. 1 VILLAGE ROADSHOW limited REVIEW CORPORATE 3 PREVIOUS CORPORATE REVIEW PARKS THEME 9 START Following the appointment of additional In February this year Village Roadshow independent non-executive directors to completed the previously announced the Board last year, in April the Company’s merger of our Village Roadshow Pictures long-serving independent director Group (‘VRPG’) business with Concord Mr.
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