May 15, 2000 06:47am
PRVT Announces 34.9% Increase in Net Income and 31.3% Increase in Revenue For First 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 $6.9 million for the first quarter 2000, compared to $5.3 million for the same period last year. Net income for this period was $2.0 million compared to 1.4 million for the comparable period last year. The revenue increase of 31.3% and the net income increase of 34.9% for this period, compared to the same period last year, has been achieved by the very strong growth in Internet and DVD sales. This trend is accelerating and the Company believes that the current year will show considerable growth in revenue and, more significantly, a substantial increase in net income.
DVD sales for the three months ended March 31, 2000 amounted to $950,540 and should not be compared with the first quarter 1999 period since the Company released only a few titles in the same period last year and the global consumer DVD market was not sufficiently developed at that point. DVD sales for three months ended March 31, 2000 almost equaled total sales for 1999 of $1 million. During year 2000, the Company is planning to release 50 new titles and 50 back-catalogue titles.
Internet sales for the first quarter 2000 increased 227.4% to $900,805 compared to the three months ended March 31, 1999.
Results for the first quarter 2000 do not take into account official Company announcements made during the period relating to the Private Gold broadcasting joint venture agreements. Financial results arising from these recent agreements will be recognized and reported according to US GAAP.
Commenting on the First Quarter results Berth Milton, chairman and CEO said: ``Private Media Group continues to grow at a significant rate while creating a very positive blend of New and Old Economy business models. We have unrivalled content in our industry and our distribution platforms are continually expanding. Management is particularly encouraged by the substantial increases in DVD and Internet sales, and we feel the Company's foresight in committing to these markets at an early stage in their development has been a contributory factor in our success to date. We are particularly pleased that net income for the first quarter 2000 already exceeds half of the total net income for all of 1999. We aim to continue our forward momentum and view future growth in revenues and profits with extreme confidence.''
(In USD thousands, except
Years Ended March 31
Revenue 6,923 5,272
Net Income 1,922 1,470
Weighted Average common
and common equivalent
Basic 8,917,148 8,133,336
Diluted 16,320,350 15,781,739
Net Income per
Common and common
Basic 0.22 0.18
Diluted 0.12 0.09
The Company's principal currency is Swedish Kronor (``SEK''). Solely for the convenience of the reader, the accompanying financial information as of March 31, 2000, 1999 and for the three months then ended have been translated into United States dollars (``USD'') at the rate of SEK 8.67 per USD 1.00 the exchange rate of the Swedish Riksbank on March 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 information, visit the Company's corporate Web site at www. prvt.com
Other companies in the adult entertainment include Playboy Enterprises Inc. and New Frontier Media.
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.
CONTACTS: In Barcelona, Spain: Johan Gillborg of Private Media Group Inc., +34-93-590-7070, firstname.lastname@example.org; or In London, England: Adam Reynolds of Hansard Communications.Com, +44-207-840-7782, email@example.com