Budapest to sell two multiplexes
Friday, August 5, 2005, 14:14
The City Council of Budapest plans to sell two of its multiplex cinemas for a combined minimum price of Ft 1.9 billion plus Ft 500 million in debts through public tenders, council representatives told news wire MTI. The two multiplexes, located in the adjacent Mammut I and Mammut II shopping centres, were long sources of cash which the Council used to fund the capital's loss-making art cinemas. But the multiplexes' popularity has declined, and their profits are no longer sufficient to cover the art cinemas' losses. Last year the Council used the profits of the two Mammut multiplexes and those of its Corvin multiplex to cover for Ft 150 million in losses by art cinemas around the city, according to Budapest deputy-Mayor Janos Schiffer. About Ft 1 billion from the sale will go toward setting up a foundation to finance the art cinemas.