Source: Private Media Group Inc.
(BARCELONA) — Private Media Group Inc. (Nasdaq: PRVT – news) worldwide leader in premium-quality adult entertainment products, services and Internet content, and Internet content, is pleased to announce revenue of $10.1 million for the first quarter 2001, compared to $5.9 million for the same period last year. Net income for this period was $2.9 million compared to $1.3 million for the comparable period last year. The revenue increase of 69.8% and the net income increase of 126.4% for this period, compared to the same period last year, has been achieved by the exceptional growth in Broadcast, Internet and DVD sales which not only brings the Company great growth, but also better margins by leveraging the content also used for videos and magazines. The Company believes this trend is continuing and that the current year will show considerable growth in revenue and, more significantly, a continued increase in net income.
The $4.1 million increase in revenue was mainly attributable to the Broadcast, DVD and Internet sales. Sales of videos and miscellaneous increased slightly during the period. Sales of magazines remained approximately the same during the period compared to last year. During the three months ended March 31, 2001 the total new media division sales, including DVD, Internet and Broadcast sales, increased 210%, to $5.0 million compared to the three months ended March 31, 2000.
Berth Milton, Chairman and CEO commented: “The Company’s revenues increased in both old and new media for the quarter, with the greatest growth attributable to our New Media Division which now represents approximately 50% of our revenues.”
Mr. Milton continued: “While last year the hyper growth from New Media was mostly reflected in profits, now it is also reflected in revenues. There’s a hot demand for our new media products which is boosting both top and bottom line and I would like to add that we remain confident that this momentum will continue for the coming years. However, we believe that investors should keep a closer look at us since we are constantly delivering an exceptional growth and we hope that the investment community properly understands the potential of Private. Customers and media have always recognized the size and value of the Adult Entertainment Industry, but most investors still fail to do so. In order to raise awareness, we are seriously considering the possibility of a second listing of our Company in Europe.”
(Statistical amounts redacted)
The Company’s principal currency is Swedish Kronor (“SEK”). Solely for the convenience of the reader, the accompanying financial information as of March 31, 2001, 2000 and for the three months then ended have been translated into United States dollars (“USD”) at the rate of SEK 10.39 per USD 1.00 the exchange rate of the Swedish Riksbank on March 31, 2001. 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 info about Private Media Group, please 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 judgements of those issues. However, because these statements are forward-looking and apply to future events, they are subject to unpredictable circumstances, which could lead to results materially different from those anticipated by the Company.
For further information about Private Media Group, please contact: In Barcelona, Spain: Andre F. Ribeiro, +34-679-983-772, andre@private.com.
