Finnkino strengthens its position in the Baltic area by broadening its actions into home entertainment market. It bought a 75% share of an Estonian video distributor, AS V&K Holding, which operates in the Baltic area. The operating management owns the remaining 25% of shares.
According to Timo Mänty, the President of Finnkino, Baltic home entertainment market fits well in Finnkino's strategy. - Finnkino is already the market leader in presenting and distributing movies in the Baltic area and now it becomes number one in VHS and DVD distribution as well.
AS V&K Holding, which was founded in 1998 has an own retail chain. It has 65 agencies in Estonia and 6 in Latvia. Rautakirja has kiosk chains both in Estonia and Latvia enabling synergies also in VHS and DVD distribution.
V&K Holding's net sales are estimated to be some EUR 2.5 million in 2004 and result will be positive.
Finnkino and its subsidiaries in Estonia, Latvia and Lithuania had net sales of EUR 49.6 million in 2002. Finnkino is a subsidiary of Rautakirja and a part of SanomaWSOY Group.