November 14, 2000 02:25am
PRVT Announces 149.2% Increase in Net Income and 56.9% Increase in Revenue For Third Quarter 2000
Source: Private Media Group Inc.
by: Company Press Release
(BARCELONA, Spain) -- Private Media Group Inc. (Nasdaq: PRVT - news), worldwide leader in premium-quality adult entertainment products, services and Internet content, is pleased to announce revenue of $6.8 million for the third quarter 2000, compared to $4.3 million for the same period last year.
Net income for this period was $2.1 million compared to 0.8 million for the comparable period last year. The revenue increase of 56.9% and the net income increase of 149.2% for this period, compared to the same period last year, has been achieved by the very strong growth in Broadcast, Internet and DVD sales. This trend is continuing and the Company believes that the current year will show considerable growth in revenue and, more significantly, a substantial increase in net income.
For the nine months ended September 30, 2000, the Company reported net sales of $18.5 million which, compared to net sales of $12.9 million for the nine months ended September 30, 1999, represents an increase of $5.6 million, or 43%. The increase was mainly attributable to the Broadcast, DVD and Internet sales. DVD sales for the nine months ended September 30, 2000 was $3.4 million. Internet sales for the nine months ended September 30, 2000 increased 212% to $3.2 million compared to the nine months ended September 30, 1999. Broadcast sales increased 451% to $1.3 million compared to the nine months ended September 30, 1999. The management believes that the growth in DVD, Internet and Broadcast sales will continue in 2000 and 2001. The total new media division, including DVD, Internet and Broadcast sales increased $6.2 million, or 379%, to $7.9 million compared to the nine months ended September 30, 1999.
Commenting on the Third Quarter results Berth Milton, chairman and CEO said: ``Private Media Group continues to grow at a significant rate. In particular we are very pleased with the growth in the new media division which includes Broadcast, DVD and Internet sales.'' Mr. Milton then continued: ``The cost infrastructure is now in place and any increase in forthcoming revenue will have a significant positive effect on the profitability of this division. It is my view that with some of the recent joint venture agreements the Group has entered into, we will see significant growth in the future.''
The Company's principal currency is Swedish Kronor (``SEK''). Solely for the convenience of the reader, the accompanying financial information as of September 30, 2000, 1999 and for the three months then ended have been translated into United States dollars (``USD'') at the rate of SEK 9.68 per USD 1.00 the exchange rate of the Swedish Riksbank on September 30, 2000. The translations should not be construed as a representation that the amounts shown could have been, or could be, converted into US dollars at that or any other rate.
The leading publicly-quoted adult entertainment company in the world, Private Media Group Inc., is the founder of the globally established brand name 'Private' and has positioned itself in the marketplace with a visionary management strategy that combines both New Economy (Internet, multimedia, e-commerce) and Old Economy (videos, magazines) business models. Maintaining a total adult lifestyle philosophy, this is reflected in the Company's broad range of products and services, both proprietary and licensed, and its strategic policies of development, diversification and acquisition.
For more information, visit the Company's corporate Web site at www. prvt. com.
This release contains, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current judgments of those issues. However, because those statements are forward-looking and apply to future events, they are subject to such risks and uncertainties, which could lead to results materially different than anticipated by the Company.
For further information, please contact: In Barcelona, Spain: Johan Gillborg of Private Media Group Inc., +34-93-590-7070, email@example.com; or In London, England: Adam Reynolds of Hansard Communications.Com, +44-207-840-7782, firstname.lastname@example.org.