April 01, 2003 09:19am
Private Announces Record Revenues 2002
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, is pleased to announce record revenue of EUR 39.4 million for the year ended December 31, 2002. Net income for the year was EUR 0.3 million including a charge of EUR 1.6 million related to the postponed equity offering in January of 2002.
Broadcast sales for the year ended December 31, 2002 jumped 45% to EUR 4.1 million and DVD sales for the year ended December 31, 2002 increased 30% to EUR 15.5 million. Internet sales fell 22% to EUR 6.1 million in 2002 compared to the year 2001. In addition magazine and VHS sales fell 15% to EUR 13.8 million versus 2001.
Charles Prast, President and CEO commented: "2002 was a very poor year for media companies world-wide. Despite the tremendous downturn in the media market, Private was profitable across all our lines of business. With the expectation of a favorable equity offering in the first quarter of last year, Private had begun investments in a number of exciting new ventures to ensure our profitable growth in new avenues of distribution. These projects included mobile content and services, at home DVD rental, content for Personal Digital Assistants, broadband distribution, and our new on-line shop. Despite the general media environment and limited capital resources, Private completed work on all these ventures in 2002. In addition we grew our substantial film library by over 25%, maintaining our position as a leader in quality hard-core entertainment. Lastly, we undertook a tremendous restructuring of our New Media division which had been suffering from both underinvestment in technology and poor managerial controls. To have launched all of these exciting new projects, maintained the growth of our library, and restructured our on-line business in a year marked by both major turmoil in the media sector and a failed secondary offering is a testament to the strength of Private and our employees."
"We are very excited about the potential for bottom-line contribution from all of these new projects in 2003 and expect continued high growth in DVD and broadcast sales as we enter new markets. The bulk of our restructuring efforts in New Media are over and we have already started to see the benefits through a sharp rise in e-commerce receipts and lower SG&A. We continue to work to ensure that Private remains the adult content partner of choice for blue-chip digital distribution companies and the product of choice for millions of consumers worldwide." said Mr. Prast.
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, broadcasting and wireless technologies. Private owns the worldwide rights to the largest archive of high quality adult content in the world, which it distributes physically in over 35 countries and digitally worldwide. For more information on the company, go to PRVT.com.
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 about Private Media Group, please contact:
Alejandra Moore Mayorga
Phone: + 34 93 590 70 70
+34 91 531 23 88
+34 670 799 335