May 13, 2004 12:00am
Private Reports Profit with Q1 Net of .8 M Euros
Source: Private Media Group Inc.
by: Company Press Release
(BARCELONA, SPAIN) -- Private Media Group Inc. (NASDAQ Nm: PRVT): A worldwide leader in premium-quality adult content, announced increase in net sales to 10 million Euros for the three months ended March 31, 2004. Net income reported for the period was 0.8 million Euros compared to 0.0 million Euros for the comparable period last year.
For the first three months of 2004, net sales were 10.0 million Euros compared to 9.6 million Euros for the comparable period in 2003. The change is attributable to increases in sales of: DVDs of 21% to 5.6 million Euros, Magazines of 50% to 1.5 million Euros and Broadcasting of 65% to 1.2 million Euros, offset by the general industry decrease in Video sales. Internet sales were stable. Operating profit for the first quarter of 2004 increased 0.5 million Euros compared the same period in 2003, reflecting reduced SG&A.
Berth Milton, President and CEO, commenting on the results said, "Our results for the first quarter confirm the successful implementation of the restructuring of operations to strengthen core businesses and reduce selling, general and administrative expenses. The results also show the first signs of our expansion in the Us broadcasting market and we expect sales to continue to increase in this area in 2004.
Mr. Milton added: "Now that we are back to profit and SG&A is firmly under control, we are not only looking forward to seeing improved sales in broadcasting, but in general. Our rollout of sales points in tax-free areas at airports commenced during the first quarter and we have also overhauled the outsourcing of our Internet services recently and we expect to see a positive impact on sales from both areas. Furthermore, with more than twenty agreements in place with 3G service providers, we are well prepared for the worldwide rollout of this new technology. Finally, as commented in April, we are very pleased with the signature of the 1.8 million Euro agreement for the sale of the ground floor of our building, which will further improve our working capital."
First Quarter 2004 Financial Highlights
About Private Media Group with its 40 year track record, Private 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. It owns the worldwide rights to the largest archive of high quality adult content in the world, which it physically distributes in over 40 countries.
Disclaimer 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
Private Media Group, Inc.
Alejandra Moore Mayorga
Tel +34 91 531 23 88