EuropaCorp S.A.: A Second Attempt at a Turnaround
In 2017, the French film producer and distributor EuropaCorp S.A. (EuropaCorp) announced a historical record loss of 119.9 million. The company had almost doubled its revenues between 2001 and 2010 by using an integrated studio model, but the recent losses had been substantial. After entering into a number of international joint production and marketing ventures, the company reported its highest revenues to date in 2015, only to announce in July 2016 that the company had incurred significant losses and that its revenues were the lowest since 2008. Once again, the company tried to turn itself around, strengthening its position by focusing on the founder's core business and making some financial adjustments. A capital increase resulted in a positive shift in EuropaCorp's shareholding structure; however, the company was still experiencing losses and was anticipating a continuing loss into the next year. Was there anything more EuropaCorp could do to change its position? Wiboon Kittilaksanawong is affiliated with Saitama University. Pierre Jullien is affiliated with Nagoya University of Commerce & Business.