The Bavarian Supreme Audit Office (ORH) believes there is a significant need for economic action at Bavaria Film GmbH. In its report „FinSit 2026“, it recommends that the company focus more strongly on its profitable core business of film and television production, reduce costs and align profit distributions with actual business performance.

According to the Court of Auditors, Bavaria Film’s operating result, excluding one-off items and income from shareholdings, averaged minus 5.4 million euros per year during the period under review. At the same time, dividends paid to shareholders between 2019 and 2025 exceeded the profits generated by a total of 30 million euros. This led to a decline in liquidity. The ORH therefore welcomes the fact that no profit distribution is planned for 2026.

In response to the economic challenges, Bavaria Film has initiated a reorganisation. The four business divisions will be reduced to two units, central services will largely be transferred to the subsidiaries, and duplicate structures will be eliminated. In addition, the property division is to be realigned in light of falling demand and rising investment and maintenance costs.

Bavaria Filmstadt is also under scrutiny. Although it returned to profit in 2023 after eleven years of losses, and again in 2024, However, according to the ORH, its losses have totalled five million euros since 2007. Should the loss-making situation become entrenched once again, the Court of Auditors recommends that the possibility of discontinuing this business area should also be examined.

The auditors see potential for the Bavaria Film Group, particularly in closer cooperation with the public-sector shareholders and in additional production contracts. A long-term outlook must be secured through appropriate strategic decisions by the shareholders and the supervisory board.