August 13, 2003 12:00am
Private Media Group Announces Second Quarter 2003 Results
Source: Private Media Group Inc.
by: Company Press Release
(BARCELONA, SPAIN) -- Private Media Group Inc. the worldwide leader in premium-quality adult media, today announced revenues of ¤10.1 million for the three months ended June 30, 2003, compared to ¤11 million for the same period last year.
Reported net income for the period was ¤0.3 million compared to ¤2.0 million for the comparable period last year. The decrease in net income in 2003 of ¤1.7 million was primarily due to the absence of high-margin licensing sales in the broadcasting division ahead of the launch of Private's US channel and lower revenues in the on-line division as well as increased investment in new avenues of distribution.
An increase of 33%, equating to ¤1.2m, in DVD sales to ¤4.9m more than offset an expected decrease in Video and Publishing sales of ¤0.8m to ¤3.5m. Online businesses contributed ¤1.1m in sales in the second quarter versus ¤1.6m in second quarter of 2002 but continued to operate profitably for the third consecutive quarter. Broadcasting sales fell 61% to ¤0.6m from ¤1.4 reflecting the absence of US license sales to third parties.
Charles Prast, President and CEO, said "Our results for the second quarter confirms our expectations of a solid 2003 for Private. Overall, sales have now increased for three consecutive quarters and corporate overhead has continued to decline both in real terms and as a percentage of sales despite investment in a number of new exciting initiatives. We expect that higher broadband licensing revenue and the benefits of our US channel will largely compensate for lower 3rd party broadcast licensing revenues in the US going forward."
Business Highlights for the Quarter
"In the second quarter of 2003, Private has completed a number of significant ventures which are expected to contribute to the top and bottom line going forward. Among these are the opening of our own distribution centre in Canada, an exclusive broadband licensing deal with Europe's largest VOD (Video on Demand) partner, the availability of Private video content for mobile phones across Europe, the successful launch of our DVD rental service in the UK, and the roll out of numerous Private branded points of sale in Duty-Free locations in partnership with one of the world's leading Travel Retail organizations. Private's on-line businesses are now profitable following the reorganization that took place last year and we expect to see high-margin incremental revenue from our sites as our brand benefits from increased consumer recognition in the US through such avenues as our new broadcast channel" said Prast.
"As a result of these new businesses, better on-line results, and expected continued growth in sales of DVDs, we maintain our expectations of sales growth of over 15% for 2003 with improving margins due to the lower costs associated with these incremental sales." Prast concluded.
About Private Media Group
Private Media Group is a leading global adult entertainment company that distributes its content over a wide range of media platforms, including narrow and broadband Internet, DVD and video, magazines, broadcasting and wireless technologies. Private owns the worldwide rights to the largest archive of high quality adult content in the world, which it distributes physically in over 35 countries and digitally worldwide. For more information on the company, go to 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 about Private Media Group, please contact:
Alejandra Moore Mayorga
Phone: + 34 91 531 23 88
+34 670 799 335
+34 91 531 23 88