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Beate Uhse Reports Performance Hurt by Online Porn

Beate Uhse Reports Performance Hurt by Online Porn
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Aug 16, 2010 12:00 PM PDT    Text size: 
FLENSBERG, Germany – German adult product giant Beate Uhse’s earning for the first half of 2010 have been hurt by free porn on the Internet.

The company reported that its bottom line has suffered, posting pre-tax losses of $7.8 million – after a profit of $881,000 in the same period of 2009.

Turnover [annual sales to net worth] was down by 12.3 percent in the first half to $123 million. The company also issued a profits warning but maintained that financing is secure.

Beate Uhse said that its DVD sales – traditionally a strong sector of its business – has taken a hit from free Internet porn. This was traditionally a strong sector of the company’s business.

The company now plans on selling erotic lifestyle products that include bedclothes and towels.

Sales in its 258 erotic shops across 11 countries have also drooped, with turnover down by $4.6 million to $34 million.

“To be realistic, the transformation to a lifestyle company for eroticism will, from today’s viewpoint, take another two years,” chairman Serge van der Hoof said.

The company also split its mail order business into ‘soft’ and ‘hard’ sections but said the move has not yet helped performance.

The report said the performance boosting efforts are reportedly taking longer than anticipated.

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