November 13, 2002 09:33am
Private Media Group Reports Third Quarter Revenues of Eur 11.1 Million
Source: Private Media Group Inc.
by: Company Press Release
(BARCELONA, SPAIN) -- Private Media Group Inc. a worldwide leader in premium-quality adult entertainment products, services and Internet content, announces revenues of Eur 11.1 million for the three months ending September 30, 2002, compared to Eur 9.0 million for the same period last year. Net income for the period was Eur 1.5 million compared to Eur 2.2 million for the comparable period last year.
The increase in revenue for this period has been achieved by continued growth in sales in Video and Magazines, DVD and Broadcasting. Video and Magazine sales increased 39% to Eur 4.0 million, DVD sales increased 18% to Eur 4.4 million and Broadcasting sales increased 158% to Eur 1.4 million for the three months ended September 30, 2002. The increase in Video and Magazines, DVD and Broadcasting sales was offset by a decrease in Internet sales of 29% to Eur 1.3 million as a result of the transition to a new technical platform and consolidation of marginal URLs. The reduced high margin Internet sales was the primary reason for the decline in Net income versus the comparable period last year.
Charles Prast, President and CEO commented: "Despite a comparative drop in net income versus the third quarter of 2001, we remain very optimistic about the strength of our business for the end of 2002 and 2003. Our selling, general and administrative costs fell over 10% versus the preceding quarter, showing that our efforts to focus the business are paying off. In addition, despite a morose media market, our sales of magazines and videos, DVDs and broadcast licenses have increased dramatically."
Mr. Prast continued: "While we would have liked to record a faster turn- around of our on-line businesses, our strong growth in Broadcasting and physical product sales show that our high-quality content and brand are growing in popularity world-wide. Our Broadcasting revenues are generated with only marginal costs and, although the high growth comes from a low level, it validates our strategy of building relationships with digital platforms. In addition, we are leveraging this increase in brand-awareness through several new initiatives including premium mobile-phone content, the first full video and entertainment cards for Personal Digital Assistants, our PrivateAtHome.com on-line DVD rental service, and a re-launch of our e-commerce portal including an affiliate program for webmasters. All of these initiatives have been developed over the past six months and we expect they will contribute to our bottom line starting in early 2003. We remain enthusiastic about prospects for our business going forward both in terms of traditional sales and our entry into new consumer markets."
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.
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, TV broadcasting as well as wireless technologies. Private owns the worldwide rights to the largest archive of high quality adult content in the world, which it physically distributes in over 35 countries.
For further information about Private Media Group, please contact: Andre F. Ribeiro of Private Media Group, +34 679 983 772, Andre@private.com; or Alejandra Moore Mayorga, +34 91 531 23 88 or +34 670 799 335, AMoore@GrupoAlbion.net.
Source: Private Media Group Inc.