On February 23, the day after Simon’s low-key 25th birthday, the most important company annual report in the Westeros system was released.
For the whole year of 1992, Daenerys Entertainment achieved a total revenue of US$12.7 billion, a year-on-year increase of 37%. The annual net profit was US$710 million, an increase of 260% compared with the net profit of US$270 million in 1991. At the same time, the debt scale of Daenerys Entertainment Group has also been significantly reduced again, from US$7.8 billion last year to US$7.1 billion.
Annual revenue of US$12.7 billion has completely established Daenerys Entertainment as the largest media group in North America and even the world.
Such eye-catching revenue data mainly supports the overall growth of Daenerys Entertainment's film and television entertainment, theme parks, consumer peripherals and other businesses. Among them, the film business still plays a very obvious locomotive effect.
Net profit of US$710 million, although compared with revenue, the net profit margin is only 5.6%, but it also exceeds several other Hollywood studios.
Moreover, the reason why profit margins are so low is mainly due to considerations such as reducing debt and corporate expansion.
In fact, if you wish, Daenerys Entertainment's overall debt amount can be reduced to less than $7 billion. However, Simon did not do this. Maintaining an appropriate debt ratio can help companies offset a large part of their taxes. As a non-listed company, this is also the best channel to maintain connections with capital from all walks of life.
Simon has always been very clear that Daenerys' entertainment has become more and more powerful, and the foundation of the entire Westeros system is definitely not stable. At this time, many things must be as cautious as possible.
In order to pave the way for next year's listing, after the financial report was released, Daenerys Entertainment quickly announced detailed data on the Ygrit portal, which triggered numerous reprints and discussions in traditional media.
The revenue of US$12.7 billion not only exceeds Time Warner’s revenue of US$11.9 billion in the previous fiscal year, but also leaves the seven major Hollywood studios far behind.
Take Columbia Pictures, for example. This large studio controlled by Sony has a total revenue of only US$2.6 billion in the past four quarters, which is only equivalent to one-fifth of Daenerys Entertainment’s revenue. one. Other companies such as Fox, Paramount, and Disney are also far behind Daenerys Entertainment.
Amid the heated discussions from the outside world, Daenerys Entertainment also took the initiative to once again release the news of its upcoming IPO, which quickly attracted more attention.
The planned stock listing date is next summer. However, with the release of the new year's financial report, Daenerys Entertainment has begun preparations for next year's IPO more than a year in advance.
A giant enterprise with a revenue of tens of billions of dollars. According to the latest Fortune 500 data, it has been ranked among the top 30 in the United States. Moreover, it is basically tied with Daenerys Entertainment. They are all established giants with decades of history, and their growth momentum is far from comparable to that of Daenerys Entertainment, which is still vigorous.
At the same time, the overall growth rate of the global entertainment industry is also very rapid, which puts Daenerys Entertainment in a very excellent industrial environment.
When Forbes calculated Simon's personal net worth last year, it valued Daenerys Entertainment at US$30 billion.
According to the latest 1992 financial report data released by Daenerys Entertainment, the valuation of US$30 billion may seem high, but it is not an exaggeration.
If Daenerys Entertainment hadn't put a lot of energy into business expansion and debt reduction, Daenerys Entertainment's net profit margin would be enough to reach more than 15%. Based on revenue of US$12.7 billion, a net profit margin of 15% means a full-year net profit of US$1.9 billion.
The net profit scale of US$1.9 billion compared to the valuation of US$30 billion is only equivalent to a price-to-earnings ratio of 15 times.
For a company with an annual growth rate of 37%, the IPO valuation of 15 times earnings can be said to be very low. After the recovery of the U.S. stock market in the past two years, the average price-to-earnings ratio of both the New York Stock Exchange and the Nasdaq has exceeded 15 times.
The listing of a US$30 billion company will undoubtedly become the largest IPO in North America in the past decade.
Daenerys Studios.
In the past two days, the group's senior management has been holding summary meetings around the just-released financial report and making new planning and adjustments for the company's development in the new year.
After two years of integration, Daenerys Entertainment has basically digested the former MCA, and the company’s expansion deployment in various fields has been basically completed. Since the IPO will be held in the middle of next year, Simon plans to produce an outstanding financial report in 1993 that can truly reflect the profitability of Daenerys Entertainment.
This is actually something that many companies will do during the IPO process.
At five o'clock in the afternoon, the two-day meeting ended, but Simon could not get off work immediately.
Back in her office, Ella Deutschman was already waiting for Simon.
The 11-day 43rd Berlin Film Festival officially concluded on February 22. "The Wedding Banquet" produced by Daenerys Entertainment won the Golden Bear Award at this film festival just like in the original time and space. The difference is that in the past, "The Wedding Banquet" won the award together with another Chinese film "The Sweet Soul Girl". This time, only "The Wedding Banquet" won the award.
Because "The Wedding Banquet" is a production of Gomen Pictures, the media easily linked Simon's attendance at the opening ceremony of the film festival to the film's award, accusing the Berlin Film Festival of being an insider.
However, the award results have been announced, and the quality of "The Wedding Banquet" is also excellent enough. This kind of controversy is destined not to cause too much trouble. A few years later, the outside world will only remember that "The Wedding Banquet" won the Golden Bear Award at the Berlin Film Festival in 1993 , this is the winner and the loser.
As for whether there is really an inside story
Of course it exists.
Gomen Pictures has become the best partner company for art films in recent years. Film festival organizers may not be able to influence the judges who are all relatively successful, but Gomen Pictures can.
Unless they are completely disinterested in Oscars, Cannes, Venice, and Berlin, it is impossible for these judges to be biased during the award evaluation process.
This is the key to why the films produced by Miramax can dominate the Oscars and major film festivals.
Today's Gomen Pictures is even more powerful than Miramax was in the past.
Therefore, there is no need to deliberately manipulate anything. As long as the judges are not completely devoid of fame and fortune, they will definitely consider Daenerys Entertainment's projects during the award process.
Through some relatively close connections, Daenerys Entertainment can also obtain the judges' voting information that is usually not disclosed to the public. It is clear at a glance who is in favor and who is against.
Of course, the basis for all this is that the films produced by Gaomen Pictures are excellent enough. Otherwise, Simon himself would not allow signs to be smashed.
Not only that, after winning this Golden Bear Award, Gaomen Pictures has no plans to get the highest award in the next one or two years. Turning a film festival into your own 'back garden' is definitely not a good choice.
After winning the Golden Bear, the Gaomen Pictures team also started promoting "The Wedding Banquet" and is expected to officially launch the film in North American theaters on March 6.
It won the award on February 22 and will be released on March 6. Although the number of planned opening screens is only about 200, this still shows the growing distribution capabilities of Daenerys Entertainment.
If it were other second- and third-tier distributors, after the film won awards, obtained the copyright, arranged the schedule, started publicity and distribution, and went through all kinds of troubles, maybe half a year would have passed, and by then, the popularity of the Golden Bear Awards would have already cooled down.
Moreover, the release arrangements for "The Wedding Banquet" were made on February 22, the day it won the Golden Bear Award.
Even if you are confident, no one can be 100% sure of winning before the award is announced. Once the award fails, another distribution strategy will have to be adopted, and the early March schedule may not be appropriate.
Simon had been informed of various arrangements on the closing day of the Berlin Film Festival, and what he was discussing with Deutschman today was about Working Title Films.
Because it has never been able to find a reliable sponsor, Tentative Films has basically been in the status of a handbag company in recent years, worse than Miramax, which Simon had just killed.
The two partners of the tentatively named film company, Tim Bevan and Sarah Radcliffe, do not even have a formal office space. In recent years, they have basically been holding a few projects in their hands and traveling everywhere. Raise funds, invest in production, and handle distribution by yourself. Basically, you produce one movie a year. Naturally, the income is not much, just a hard-earned money.
Simon took a fancy to the "Bloody Romeo" script recommended to him by Tim Bevan, and asked Ella Deutschman to lend two people. Tim Bevan and Sarah Radcliffe finally The 'organization' was found.
As for the tentative name Films, Simon has no plans to develop another sub-label. Therefore, the two just signed on to become regular producers under Gaomen Pictures.
Moreover, Simon also successfully found "Four Weddings and a Funeral" from the scripts provided by the two.
After all, the British film industry is not that big. Since the original script, which was not expected at first, fell into the hands of these two people, it is not surprising this time. Not only that, Simon also saw another script from the two of them, "Death Row".
"A Walk on Death Row" is a script adapted from a true story, telling the story of nun Helen who gradually discovers the truth of the incident during her correspondence with Matthew, a death row inmate.
In the original time and space, "Dead Man Walking" starred Tim Robbins and became a favorite for Oscar nomination in 1996, and sent Susan Sarandon to the throne of actress. Of course, the film's box office performance was also very good.
Simon had no memory of "Romeo," but was able to find "Four Weddings and a Funeral" and "Death Row" from producers Tim Bevan and Sarah Radcliffe. Two excellent scripts have already confirmed the vision of the two producers, and the outstanding performance of the tentatively named film company in the box office and awards also proves their ability.
It can be said that signing these two people under Daenerys Entertainment is even more worthwhile than winning one or two dark horse projects.
Although he discovered the two scripts of "Four Weddings and a Funeral" and "Death Man Walking", Simon did not start all these things at once.
Counting "Bloody Romeo" and "Four Weddings and a Funeral", Simon also selected a romance film "Love in My Heart" from the scripts held by the two, making up three movies. Leave it to two people. Production of "Death Row" will be delayed.
Among the three movies, "Bloody Romeo" is very uncertain, and "Deep in My Heart" is just an addition. The key is still "Four Weddings and a Funeral".
Of course, these are not enough for outsiders.
Ella Deutschman's favorite film is obviously "Romeo Bloody."
Quentin's last film "Reservoir Dogs" had a production cost of US$1.5 million. Different from the strategic mistakes in the original time and space, this time, relying on the distribution of Gaomen Pictures, it achieved a global box office of more than US$40 million. Therefore, The next work of this emerging director has always been highly valued by Gaomen Pictures.
The reason why the second film has not been launched is mainly because a suitable script has not been found.
Quentin himself was not very satisfied with "True Romance". After seeing "Bloody Romeo", he became more interested. However, Quentin also asked to personally revise the script of "Bloody Romeo" in order to Adapt to his own style.
The project was selected by Simon himself. If you want to modify it, you will naturally need Simon's consent.
Simon himself naturally had no objections. When reading the script of "Bloody Romeo", he also felt that if Quentin was to film it, the story would obviously lack some of the other party's nagging style.
Although she valued "Bloody Romeo" more, out of instinctive trust in Simon's vision, Ella Deutschman did not ignore "Four Weddings and a Funeral" and "Love in My Heart" and analyzed them personally The advantages of both scripts are revealed.
"Four Weddings and a Funeral" is full of typical British humor and should be made into a comedy like the original "A Fish Named Wanda".
As for "Love Deep in My Heart", the selling point should be polar romance. This is a story that takes place in the Arctic Circle.
Therefore, according to preliminary statistics, if the three movies are to be shot well, "Love in My Heart" will have the highest production cost. Due to the filming in the Arctic and the selection of a good creative team, the production cost may reach 2,000 Ten thousand U.S. dollars. As a cutting-edge director who has already emerged, the production cost of "Bloody Romeo" is also US$15 million.
For the final "Four Weddings and a Funeral," Simon and Deutschman agreed and only gave a production budget of $5 million.
The discussion about the two producers and the three film projects lasted for an hour. At six o'clock, Deutschman was sent away, and the A girl Alison walked into the office.
The female assistant is pregnant and must reduce her workload. After several considerations, Alison was transferred to serve as Simon's second assistant.
Although she is a maid, Alison has assisted Janet in handling various affairs of the Westeros family in recent years. In fact, she is equivalent to Janet's assistant. At this time, she came to serve as Simon's second assistant. In terms of ability, Appears to be at ease.