August 08, 2000 09:00pm
Private Media Group Announces 127.6% Increase in Net Income from $1.4 million to $3.1 million
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 $12.9 million for the six months ending June 30, 2000, compared to $9.5 million for the same period last year. Net income for this period was $3.1 million compared to 1.4 million for the comparable period last year.
For the second quarter revenue increased 41.8% and net income increased 1611.8% compared to the same period last year. The results for the second quarter and the six-month period ending June 30, 2000 has been achieved by 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 six months ended June 30, 2000 was $2,192,963 and should not be compared with the six-month 1999 period since the Company released only a few titles in the same period last year and the market was not ready. During the year 2000 the Company is planning to release 50 new titles and 50 back-catalogue titles. Internet sales for the six months ended June 30, 2000 increased 253% to $2,043,133 compared to the six months ended June 30, 1999. Broadcast sales increased 247% to $603,919 compared to the six months ended June 30, 1999. The management believes that the growth in DVD, Internet and Broadcast sales will continue in 2000. The total new media division, including DVD, Internet and Broadcast sales increased 427% to $4,840,015 compared to the six months ended June 30, 1999.
Berth Milton, Chairman and CEO commented:
"We are very pleased with our second quarter results and in particular with our internet business. Revenue from this division continues to grow and after all costs incurred and written off we are operating on a 54% net margin. With over 150,000 pages of content, 11,000 members, 150 million page views only in June and a very low churn rate, I believe this business has substantial value.
It is my belief that we will see exceptional growth throughout this year and next, especially from the "new economy" divisions within the Group and I very much look forward to the future with confidence."
The Company's principal currency is Swedish Kronor (``SEK''). Solely for the convenience of the reader, the accompanying financial information as of June 30, 2000, 1999 and for the six months then ended have been translated into United States dollars (``USD'') at the rate of SEK 8.81 per USD 1.00 the exchange rate of the Swedish Riksbank on June 30, 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