Quick Index
 Adult Industry News
Search AINews Database
Type Keyword or Phrase Here
HardArt Films Pornography feminists unshackle their desires and celebrate their sexuality in the patriarchal world

Front Page
Film News
Media News
Business News
Clubs & Appearances
Law & Politics
Internet & Mobile News
Lifestyles Arts Health Charity
Letters to the Editor
Movie Spotlight Reviews
Pornstar Pages
AINews Staff
Ad Rates
PR 101: Press Release Service

Porn for GEEKS! Meet me & my friends!

Eva Angelina at Twistys

May 19, 2005 12:19am
PRVT results Q1 '05
Source: Private Media Group, Inc.
by: Company Press Release

(BARCELONA, SPAIN) -- Private Media Group Inc. (NASDAQ: PRVT) a worldwide leader in premium-quality adult entertainment products, services and Internet content, today announced its results for the first quarter of 2005.

The company reported a decrease in sales of 2.6 million euro, to 7.4 million euro for the three months ended March 31, 2005. Net income was 0.7 million euro for the period, compared to 0.8 million euro for the same period last year, a decrease of 0.1 million euro.

DVD sales decreased 1.1 million euro, or 22%, to 4.1 million euro. The decrease in DVD sales was primarily due to one month's loss of sales of new releases equal to approximately 1.0 million euro. The loss of sales was the result of our DVD duplicator suffering a logistics and delivery breakdown in February 2005. In addition DVD sales were affected by our outsourcing in the Us where we now report sales net of agent's commission. Although the outsourcing in the Us has a negative effect on sales, we expect the restructuring to increase operating profit in 2005 when compared to 2004. The negative impact of reporting Us sales net of agent's commission was 0.5 million euro. Video sales decreased 0.7 million euro, or 86%, to 0.1 million euro when compared to the same period in 2004. This decrease in sales was the result of a general industry decrease in video sales due to the migration from video to DVD. Magazine sales decreased 0.2 million euro, or 14% to 1.3 as a result of fewer issues released during the three month period. Internet sales decreased 0.3 million euro, or 20%, to 1.0 million euro as a result of the closing down of our third party payment processor for Us transactions. Subsequently, we temporarily transferred our Us transactions to our payment processor for European transactions, however, this did not compensate sales. As of May 2005, we have a new payment processor for Us online transactions and we expect sales to return to regular trading levels seen prior to the closing down of this third party supplier. Broadcasting sales decreased 0.2 million euro, or 17%, to 1.0 million euro as a result of lower content licensing sales in the period.

Easter, which historically has a slow-down effect on retail sales, took place during the first quarter of the year compared to the second quarter of the year in 2004, and had an overall comparable negative impact on sales of magazines and DVDs.

In the period, we realized a gross profit of 3.0 million euro, or 40% of net sales compared to 5.3 million euro, or 53% of net sales for the same period last year. The decrease in gross profit as a percentage of sales was the result of sales mix and the effect of amortization of our library, which does not vary with sales.

Our selling, general and administrative expenses were 3.5 million euro for the period compared to 4.5 million euro for the same period last year, a decrease of 1.0 million euro, or 22%. The decrease is primarily the result of reductions in bad debt expense and depreciation, and the outsourcing of distribution in the United States, offset by non-recurring expenses of 0.5 million euro relating to a weekly publication which was launched and discontinued during the period. We expect selling, general and administrative expenses to continue to remain lower in each quarter in 2005 compared to 2004.

During the period we sold the remaining part of our real estate property in Barcelona, Spain at a profit of 1.3 million euro. The consideration under the agreement was 6.9 million euro, of which a 10% down payment was received upon signature. The 6.2 million euro balance of the consideration due will be received in two installments, which are expected to take place no later than June and November of 2005, with the first payment to be not less than 2.85 million euro. Part of the proceeds from the sale will be used to repay the 2.3 million outstanding balance on the loan related to the building. Repayments on the loan will be made in proportion to cash received from the sale.

Operating profit. We reported an operating profit of 0.7 million euro for the three months ended March 31, 2005 compared to 0.7 million euro for the same period last year. Although gross profit decreased 2.3 million euro, it was compensated by 1 million euro in savings from SG&A and 1.3 million euro from gain on sale of building, thereby keeping operating profit on the same level as in 2004.

Berth Milton, President and CEO of Private Media Group, said: "I am pleased with the overall restructuring of our business, particularly in the US where operations now are up and running and where, in the second quarter, we expect operating profits in this region to exceed those of the same quarter last year and to continue to grow steadily.

"Furthermore, we expect DVD sales, and related margins, to grow in the second quarter as a result of having doubled our releases of new content from three to six titles per month compared with last year. In addition to the increase in new content released in the second quarter, it will be the first full quarter where our reporting will include the distribution of Pure Play Media's titles in Europe and we expect this to have a positive impact on our operating profit as well.

"In terms of cash-flow, the real estate property sale is going to give us additional liquidity to pay off costly loans and to fuel the increased investment in our premium content library. A library that will continue to play a key role, enabling us to further capitalize on the new technology developments that are one of the cornerstones to our future growth and that are now erupting into the market with strength: A case in hand is multimedia mobile content, where the consumer roll-out of 3G in Europe is solidly underway, and where we, as both a white label and a branded content provider, should be able to grow and fortify our market share. In this respect, we have recruited sector expertise to build on our management skills in this arena. Another example with respect to new technologies, is video-on-demand, both online and via traditional broadcasting, where we expect to see business developments and growth this year and where brand and quality of content is key.

"All in all, I continue to remain confident that we can look forward to substantially improved results this year compared to 2004, thanks to increased revenues from DVDs, Internet and broadcasting, coupled with better margins and reductions in SG&A." Mr. Milton concluded.

First Quarter 2005 Financial Highlights [redacted due to formatting problems]

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:
Alejandra Moore Mayorga
Tel +34 91 531 23 88

HardArt Films

Related Stories

Related Sites - WARNING! Graphic Content


New AINews Website

Top Stories

New Jenevieve Hexxx Vids on Pornhub

MWA: 06/28/19

MWA: 06/26/19

2019 XRCO Awards Winners

MWA: 06/20/19

Seth Gamble at Industry Discussion

MWA: 06/13/19

MWA: 05/24/19

MWA: 05/21/19

Sofie Marie on Swinging

MWA: 05/08/19

2019 Club EXPO Breaks Record

Emori Pleezer: BDSM Princess

Expo 2019: A Star is Born

AEE 2019: Is Camming the New Porn?

2019 XRCO Awards Nominations Announced

MWA: 04/20/19

MWA: 04/12/19

AEE 2019: Ela Darling

AEE 2019: Sofie Marie

AEE 2019: Cindy Starfall on Swinging and Camming

MWA: 04/10/19

Stunning Summer Now Loves Models Talent Agent

AEE 2019: Christiana Cinn on Porn and Camming

AEE 2019: Bree Mills, Part Two

AEE 2019: Bree Mills, Part One

Alexis Fawx: A Lesson in Self-Awareness

MWA: 04/01/19

AEE 2019: Sofia Rose, BBW Sweetheart

AEE 2019: Taylor Stevens on Camming

AEE 2019: Kelley Cabbana and Camming

MWA: 03/29/19

AEE 2019: Cory Chase

MWA: 03/27/19

MWA: 03/25/19

AEE 2019: Ember Snow Talks Cam Girls

MWA: 03/16/19

MWA: 03/08/19

MWA: 03/01/19

Charlie Biggs RIP

AEE 2019: Vanna Bardot Update

Discloses Searches for Prostitutes

Elements ~ Reviewer Rated

Industry Veteran D. Wise Passes

Decline of Big Girl Market

AEE 2019: The Code and August Ames

AEE 2019: Nina at Thirty-five

Angel Marie at Lust

Sexual Harassment ~ Reviewer Rated

MWA 12/19/18

MWA: 12/12/18

Sarah Vandella: Pushing my Boundaries

MWA: 12/10/18

MWA: 12/08/18

Reagan Foxx: A Ton of Fun

MWA: 11/28/18

MWA: 11/18/18

Depression in the Industry

Vanna Bardot: The Girl with the Braces

Scarlett Mae: Making Sex Feel Natural

MWA: 11/08/18

HardArt's Sexual Harassment Trailer

MWA: 11/07/18

HardArt Announces Sexual Harassment

Love in the Digital Age ~ Reviewer Rated

Being a Pornstar

Sexual Harassment Trailer

HardArt Lauches Website

OneStone Hub

E11EVEN, Nova Win at ED Expo

HardArt Rejects Director Sally Forth

MWA: 08/19/18

Stokely Cherry OTM

August Taylor MILF PoY Nom

Phoenix Divina Hooking

ED Expo Opening Party

Vickie Jay on VNALive

HardArt 3 Pic Deal

Iron Girls 6

Carmen Valentina NightMoves Nom

Dillion Harper at Expose

Texas, Monroe, Valentien to SEXPO

The Puppeteer

Urban X Voting Open

Brooklyn Chase in Madison

HardArt's Hypersexuals a Success!

TES Affiliate Conference

Jessica Johnson Hooking

MWA: 07/27/18

Vote Olive Glass, NightMoves

Attn: Club Owners, Managers, Staff, Entertainers

2018 Inked Awards

Hard Art's Hypersexual

MWA: 07/25/18

Johnson Hosts Urban X

Dee Wallace at Horrorfest

MWA: 07/19/18 - XRCO

AirBnB Discriminates Against Sara Jay

Hard Art Shoots First

MWA: 07/21/18

Holly Hendrix at Exxxotica

Karen Fisher at Exxxotica

Carmen Valentina at Exxxotica

DomCon Registration Opens

Luna Star at Exxxotica

Elvira Receives Price Award

BSF Media Welcomes Sabrina Deep

MWA: 07/18/18

Jenevieve Hexxx Site Launch

Sex Expo NY 2018

MWA: 07/16/18

MWA: 07/15/18

Bush 7

Hard Art Signs Director

Pulse Inks Hard Art

MWA: 06/28/18

New Studio: Hard Art

XRCO Changes Venue

The Roast of April O'Neil

McCullough, Rai on Inside

Morgan, Foxxx CoHo XRCO

Big Ass Rubdown ~ Reviewer Rated

MWA: 05/03/18

MWA: 04/29/18

MWA: 04/28/18

Natasha Nice Free Agent

Holly Hendrix Self Booking

CDC: Undetectable HIV

2018 XRCO Nominees


Natasha Nice Gangbang

Amateur Introductions 26

Sex Expo NY 2018

2018 XRCO Awards Announced

Anal Violation of Bonnie Grey ~ Reviewer Rated

Eros, a Short Film

Lee Signs Victoria June

Maxine X Voted #1

Czernich Releases Heavy Rubber 37

Legal Panel: Weinstein, #MeToo

Consent Checklist

Nice Girls Swallow 10

Paradise Wins Best Condom

Paradise, Astroglide StorErotica Nom

Paradise Marketing New Website

Dennis Paradise Inducted

Stories From

Business News

Stunning Summer Now Loves Models Talent Agent

HardArt Lauches Website

HardArt 3 Pic Deal

Hard Art Shoots First

Hard Art Signs Director

Pulse Inks Hard Art

New Studio: Hard Art

Holly Hendrix Self Booking

Natasha Nice Free Agent

Consent Checklist

LewdWork Adult Job Board

Romantic Depot Harlem

Paradise, Astroglide StorErotica Nom

Spotlight Studios Adult Industry Party

Valentina Nappi Available in 2017

Osa Lovely Signs Skyn

Genuine Sin VR

Brothel Seeks Britney Spears Lookalike

Winter Wonderland at XBIZ

Press Release Service

Nina Kayy with Skyn

Coxxx Models Licensed in CA

Bukkake Participants Needed

Lolly Ink Self Booking

XBIZ 2017 Show

Allison Kilgore Returns

Tera Patrick Available

Skyler Nicole Available

Angela White US Resident

Valentina Nappi Available

Prague for TES

Invitation to the Venus

Business News Section Index

NightMoves Call for Sponsors

Dava Foxx Self-Booking

Kahlista Stonem Available

The Hedge Against Exploitation

Toy with Raquel Sultra

XBIZ Berlin Schedule

Savana Styles Available

ChargeSavvy at ED Show

Driller Signs The Rub

NightMoves Calls for Sponsors

Casting Call

ABK Beta Users Free

OC Signs Darcie Dolce

Brittany is Back

Dollie Darko with 101 Modeling

Mercy West Available

The V Agency Joins LATATA

Sin Claire with Foxxx

New Smash VP Wyatt Case

Epoch Club Special Event

Ink Inks OC, The Rub

XBIZ 2016 Announced

RAW Signs Sasha Bradshaw

Direct Reps Harper

AJ Applegate Available

Dennis Paradise Inducted

AINews New Look

Copyright © 1998 - 2018 Adult Industry News (AINews.com)
All materials constituting text, articles, press releases, stories, columns, photographs, graphics, and code on the AINews.com domain are protected by copyright, and either owned by Adult Industry News (AINews.com), or reproduced with permission from other copyright owners. It may be downloaded and printed for personal reference, but not otherwise copied, altered in any way, or transmitted to others, without the written permission of Adult Industry News (AINews.com).