For the year ended
Going forward, we expect Internet, broadcasting and wireless sales to increase (see comment on our business going forward below). In particular, we expect Internet sales to increase significantly as a result of the acquisition of the eCommerce company GameLink, who for 2008 reported
For the year ending
With respect to selling, general and administrative expenses, we reported a decrease of
The Company reported a loss of
In contrast to the 2008 loss, the Company reported
Commenting on some important factors relating to the business going forward, Private Media Group, Inc., CFO,
On
The acquisition of GameLink is a significant development that will substantially contribute to our growth, while creating economies of scale. As part of our digital strategy we have concluded that the combination of Private with a major online retailer and accomplished platform developer is the best approach to achieving our goals. The combined content assets of Private and core competencies of GameLink offer a compelling new business model. We will be expanding our joint Internet strategies globally with new formats and applications to be launched in 2009. Additionally, we will be developing improved interactive functionality for new media platforms such as IPTV and mobile, and maximizing our content monetization with the existing vast Private library as well as aggregation of select international studios offering a wide range of content and genres for all platform needs. With this expanded digital strategic focus we will be announcing a variety of compelling new initiatives during 2009. As from the first quarter of 2009, we will be consolidating 100% of GameLink's financials with Private's. For the year ended 2008, GameLink and its affiliates reported net sales of
Furthermore, we are successfully implementing our new media strategy for IPTV growth and to date we have contracted with 36 major platform operators in 18 countries in
In relation to Private branded TV channels carrying our content in
During 2008, we have successfully entered a new and important emerging market for our content, DTT (Digital Terrestrial Television). Faced with the imminent closure of analog TV services, a growing number of Western Europeans are opting for DTT as a replacement. Market analysis(ii) forecasts DTT to be the primary TV Service in 44% of Western European Households by 2012. In July we made a significant agreement with Glamour Plus, the first nationwide adult pay-DTT channel in
With respect to mobile content, Private content is available to 1.2 billion handsets via 104 mobile network operators in 45 countries. In 2008, we have been optimizing our content delivery network of aggregators in order to secure a more aggressive long-term growth. In the fall of 2008 this process was completed and consequently we expect sales to increase significantly going forward. Additionally, we are implementing a new off-portal strategy in Q2 2009 to capitalize on the expected transition and growth with this new consumer access to mobile content.
The markets of
As we further transition into global digital content delivery, DVD pricing and volume is being affected considerably and as a result the industry in general is experiencing a severe downturn in DVD sales. In view of the aforementioned, we continue to re-strategize our distribution of DVDs and Magazines to reduce any further negative impact of this downward DVD trend,' Mr. Gillborg concluded.
Financial Highlights
(In thousands of euro, except twelve months ended
per share amounts) December 31,
2007 2008
Net Sales 24,990 19,667
Net loss 405 5,188
Weighted average common and common
equivalent shares outstanding:
Basic 53,202,364 53,580,494
Diluted n/a n/a
Loss per share:
Basic 0.01 0.10
Diluted 0.01 0.10
NOTES TO THE EDITOR:
Footnotes
i According to Global IPTV Forecasts made by MRG (Multimedia Research
Group, Inc.) in 2008, the number of global IPTV subscribers is
estimated to grow from 20.4 million in 2008 to 89.1 million in 2012, a
compound annual growth rate of 45 percent. Europe continues to be the
biggest market for IPTV, with France significantly leading the growth
projections through its principal telcos. The number of IPTV
subscribers in Europe is forecasted to grow from approximately 10.5
million in 2008 to 36.4 million in 2012.
ii According to the new research brief, 'European DTT Services Snapshot,'
published by ABI Research, June 2008.
iii Juniper Research estimates in its white paper Monetising Adult Content
on the Mobile (December 2008) that the global mobile adult content
market will increase from US$2.2 billion in 2008 to US$4.9 billion by
2013.
About Private Media Group
With its 44-year track record, NASDAQ listed Private Media Group is a brand-driven world leader in adult entertainment, distributing premium quality adult content globally via multiple platforms, including broadcasting (cable, satellite, IPTV and DTT), mobile, Internet, as well as DVDs and print publications. Private Media Group owns the worldwide rights to its extensive archive of high-quality content, and also licenses its Private and 'Silver Girls' trademarks internationally. Private's acquisition of
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:
Johan Gillborg
Chief Financial Officer
Private Media Group
Tel +34 93 620 80 90
johan.gillborg@private.com
SOURCE Private Media Group
