November 14, 2001 10:52am
Private Media Group Announces Increase in Revenues And Net Income
Source: Private Media Group Inc.
by: Company Press Release
(BARCELONA, Spain) -- Private Media Group Inc. (Nasdaq: PRVT - news), a worldwide leader in premium-quality adult entertainment products, services and Internet content, is pleased to announce revenues of $25.0 million for the nine months ending September 30, 2001, compared to $17.3 million for the same period last year, an increase of 45%.
Net income for the period was $7.0 million compared to $3.6 million for the comparable period last year, an increase of 97%. The increase in revenue and net income for this period has been achieved by continued growth in sales generated from new media (Broadcasting, Internet and DVD), which also contribute better margins by leveraging content also used for videos and magazines. The Company expects to continue to benefit from the trend towards new media and expects the current year to show considerable growth in revenue and, more significantly in net income.
Sales of videos increased slightly during the period and sales of magazines remained approximately the same as those achieved last year. During the nine months ended September 30, 2001 total new media sales increased 108%, to $14.9 million, in comparison with September 30, 2000.
For the three month period ended September 30, 2001, revenues and net income increased 29% and 33% over the equivalent period last year, to $8.1 million and $2.1 million respectively. The new media division accounted for sales of $5.5 million, an increase of 75%.
Berth Milton, Chairman and CEO commented: ``Quarter after quarter, we continue to demonstrate our ability to consistently deliver substantial growth in revenues and earnings. Our growth in sales and net income were slightly above our expectations.''
Mr. Milton continued: ``We believe that our third quarter results further reinforce the viability of our long-term strategic vision at Private Media. Going forward we are focused on accelerating the roll-out of our broadcasting and broadband platforms as well as introducing mobile services for GPRS, 3G and other devices such as PDAs.''
The Company's principal currency is Swedish Kronor (``SEK''). Solely for the convenience of the reader, the accompanying financial information as of September 30, 2001, 2000 and for the three months then ended have been translated into United States dollars (``USD'') at the rate of SEK 10.66 per USD 1.00 the exchange rate of the Swedish Riksbank on September 30, 2001. 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.
A leading publicly-quoted global adult entertainment company, 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 Media (Internet, multimedia, e-commerce) and Traditional Media (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.
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 visit the Company's corporate Web site at www.prvt.com or contact in Barcelona, Spain: Andre F. Ribeiro, +34-679-983-772, firstname.lastname@example.org .