May 17, 2000 06:36am
PRVT: Recently Acquired Distributor, Extasy Video B.V., Shows 170% Increase in Net Profit
Source: Private Media Group Inc.
by: Company Press Release
(BARCELONA, Spain) -- Private Media Group Inc. (Nasdaq: PRVT - news), positioned in global markets as an industry-leading brand name with a crucial mix of Old and New Economy business models, is pleased to announce that its acquisition of Extasy Video B.V. of The Netherlands is already yielding positive results. Revenues for Extasy Video B.V. in the first quarter 2000 have increased by 44% when compared with the same period in 1999 and net profit in the first quarter 2000 has increased 170% when compared with the first quarter 1999.
Revenues for the first quarter 1999 were $487,919 and gross revenues for the first quarter 2000 were $700,391. This represents an increase of $212,475, or 44%. Net profit for the first quarter 1999 was $46,937, while that for the first quarter 2000 was $126,612. This is an increase of $79,675, or 170%.
``We are delighted to have acquired Extasy Video B.V. and that it is already on course to being a valued contributor to the Company's future revenues and profits,'' said CEO of Private Media Group Inc., Berth Milton. ``Extasy Video will enhance our presence as an established brand name in the whole Benelux region and, given our increased number of DVD releases, will ensure that our presence in this territory will continue in an upward trajectory.''
Based in the heart of Europe's adult entertainment center, Holland, Extasy Video B.V. is, and has historically been, one of Private Media Group's key distributors in Europe. Extasy Video B.V. commenced distribution of Private Media Group's video line in 1993 and has successfully increased its turnover annually. Further gains are expected to be made in the current year as it capitalizes on the increased production of Private Media Group's Digital Versatile Disc (DVD) lines and the Company's wide range of adult entertainment products. In addition to being a key European distributor for the Benelux region, Extasy Video B.V. has an advanced logistics center with substantial capacity at a geographically strategic location in Europe for the distribution of Private Media Group's products beyond the Benelux territory.
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
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, email@example.com; or In London, England: Adam Reynolds of Hansard Communications.Com, +44-207-840-7782, firstname.lastname@example.org