* Focus on restructuring and cost cutting
* Signs partnerships with Samsung, Toshiba
By Ludovic Vickers
PARIS, Sept 17 (Reuters) - French video-on-demand and film rental group VideoFutur is betting on restructuring, partnerships and investment in its online business to help it break even next year, its chief executive said.
The company is launching an interactive website and customer subscription plans, and it recently signed a deal with Samsung Electronics to provide content on its Galaxy tablet computer and a video-on-demand agreement with Japan's Toshiba.
"VideoFutur is a company in turnaround, which was bought from the scrap yard with other unhealthy companies. We brought those companies together and gave them a strategy," CEO Joseph Haddad told Reuters in an interview.
"We have no doubts that the means at our disposal will allow us to reach our breakeven point and finance our return to profitability."
VideoFutur makes revenue by charging customers a fee for the rental or download of films and deducting royalties due to film studios, like competitors such as Love Film in the UK or Netflix in the U.S. Ninety percent of its physical outlets are franchised.
VideoFutur listed on NYSE Alternext in January, when it concluded a 13.8 million-euro ($18.1 million) capital increase, as a result of a spin-off from technology and broadcast solutions provider Netgem.
The stock has since lost almost half its value, with the shares closing at 0.27 euros on Thursday and giving it a market value of 10 million euros.
"There is definitely a selling trend and to be honest, we are not engaging in any marketing activities concerning the VideoFutur stock because we believe it is pointless as long as the company is not restructured, profitable or very near being so," the CEO said.
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The company's operating loss widened to 7.1 million euros last year, but a 10.5 million-euro recapitalisation by Netgem led to a net profit of 3.4 million euros.
The company will lose money this year as it continues to restructure and shed unprofitable activities, said Haddad, whose holding company, J2H, owns 30 percent of VideoFutur.
Haddad, who is also CEO and founder of Netgem, said he opted for the spin-off to refocus Netgem's strategy and bring it closer to its core business. There are synergies between the two companies but one does not control the other, he said.
"VideoFutur is a strong brand but needs to develop its online capabilities and find the convergences between its historical activities and its online business " he said.
Since the recapitalisation, VideoFutur has invested in postal DVD rental, online downloading and the development of a customer profiling system for film recommendation.
The group currently has minor partnerships in Belgium, Luxembourg and Monaco but says no international expansion is planned until the company breaks even. (Editing by James Regan) ($1 = 0.7611 euro)