Multikino's stock exchange debut postponed

By Katarzyna Grynienko
    The financial crisis at ITI Group will suspend the stock exchange debut of one of the biggest Polish cinema chains, Multikino.
    The company will also hold back the chain's expansion to the Ukrainian market.

    Wirtualne Media (www.wirtualnemedia.pl) reports that Multikino is likely to become a public company no sooner then in the year 2010, maybe even 2111. It is a significant set-back considering ITI's plans to enter the stock market this year. Wojciech Kostrzewa, the chairman of ITI Group (www.iti.pl), also informed the media that the financial crisis on the foreign markets will postpone the company's plans to introduce Multikino in Ukraine.

    "In the present conditions we have to introduce the 'wait and see" principal. We will observe what will happen in the future because that market is going to go trough a real counteraction, not a delay in its growth, but a strong decline. This will mean a chances for us, but also some risks that are bound to dominate in the nearest time," Kostrzewa told the ISB Agency.

    The ITI group's financial crisis is a result of joint losses of several branches of the company, but is not connected to the records of Multikino. ITI's official press release reported that during the first 9 months of 2008 the income of the chain had grown to 52.6 million euros, up from 32 million euros last year. These numbers include results after the merge with another popular Polish cinema chain, Silver Screen. Presently Multikino holds 130 screens in 11 Polish cities including Warsaw, Cracow and Gdansk. In November 2007, it was the first company to introduce screenings in the Dolby 3D Digital Cinema technology in Poland. It remains one of the most interesting export branches for ITI's international development plans.