April 16, 2001 07:54am
Private Media Group Announces Revenues of $27.1 Million and EBT of $6.7 Million for Year end 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 $27.1 million for the year ending December 31, 2000. EBT for the year was $6.7 million. The growth in revenue and EBT was achieved by the successful achievements of the New Media Division including Broadcast, DVD and Internet sales.
Broadcast sales for the year ended December 31, 2000 increased 467% to $1.8 million and DVD sales for the year ended December 31, 2000 increased 498% to $5.3 million. During 2000 the Company released 83 DVD titles including both new and back-catalogue material. During the year 2001 the Company is planning to release 100 DVD titles. Internet sales increased 206% to $5.3 million compared to the year ended 1999. The management believes that the growth in DVD, Internet and Broadcast sales will continue in 2001 and 2002. During 2000 the total new media division sales, including Broadcast, DVD and Internet sales, increased $9.5 million, or 322%, to $12.4 million compared to the year ended 1999. The Company did not experience any material negative impact from the New Division sales on its traditional sales of videos and magazines.
In connection with the preparation of the Company's 2000 annual financial statements, Ernst & Young, auditors and advisors to the management of the Company advised that new standards for website development cost accounting were being developed. In accordance with the transition provisions of the Emerging Issues Task Force (EITF) of the Financial Accounting Standards Board's consensus on Issue 00-2, Accounting for Web Site Development Costs (``EITF 00-2''), the Company elected to apply this standard to website development costs incurred from January 1, 2000 and forward.
Furthermore, the auditors advised the Company that the previously issued 1996, 1998 and 1999 financial statements required restatement. Part of the basis for the restatement was that Private Circle, Inc. was deemed to be under control of the Company and should be consolidated with the Company. The consolidation of Private Circle resulted in decreased net profit before tax of $0.7 million for the year ended 2000. The Company recently signed an agreement for the sale of its interest in Private Circle and subsequently Private Circle will not be consolidated with the Company as from the beginning of the second quarter of 2001. Through the sale, the Company is expecting to re-gain the restated losses, in Q2, 2001.
Berth Milton, Chairman and CEO commented: ``In view of the recent advise that we have received concerning the need for consolidating companies that we may be deemed to control, I am disappointed with the negative impact it has had on our results, however, our results are still strong and showing excellent growth and I am in particular pleased with our New Media Division sales where the margins contribute exceptionally well to net income. Revenue from this division continues to grow and it is my belief that we will continue to see significant growth throughout 2001 and the year after.''
The Company's principal currency is Swedish Kronor (``SEK''). Solely for the convenience of the reader, the accompanying financial information as of December 31, 2000, 1999 and for the year then ended have been translated into United States dollars (``USD'') at the rate of SEK 9.54 per USD 1.00 the exchange rate of the Swedish Riksbank on December 31, 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 info about Private Media Group, please 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 these statements are forward-looking and apply to future events, they are subject to unpredictable circumstances, which could lead to results materially different from those anticipated by the Company.
For further information about Private Media Group, please contact: In Barcelona, Spain: Andre F. Ribeiro, +34-629-224-063, email@example.com.