Home > News > Private Media Group Reports Mixed 2007 Results • Bookmark   • Newsletters   • Register Search Options


Private Media Group Reports Mixed 2007 Results

Weakening dollar a big factor in overall 14% decrease in sales, says the European powerhouse, which sees a major shift in its business model
Private Media Group Reports Mixed 2007 Results
Get XBIZ News
Mar 24, 2008 9:00 AM PDT    Text size: 
BARCELONA, Spain — Private Media Group Inc. (NASDAQ:PRVT) has announced mixed financial results for the twelve months ending December 31, 2007.

As a result of transitional factors and the weakening dollar-euro exchange rate, Private reported decreased sales of 14% to 25.0 million euro for the twelve-month period ended December 31, 2007, compared to 2006.

The decrease was primarily due to decreased DVD & Magazine and Broadcasting sales, offset by increased Internet and Wireless sales, Private asserted. Net sales in general were affected by changes in exchange rates.

Despite the weakening dollar, Private reported that Internet sales had increased 3% to 4.4 million euro, while broadcasting sales decreased 1.0 million euro, or 12%, to 7.1 million euro.

The decrease was seen as primarily the result of the combined effect of the discontinuing of low margin pay-per-view sales in the US and a 2006 non-recurring Pay-TV license sales in Europe totaling 2.3 million euro, offset by an increase of 1.3 million euro, primarily from new broadcasting business in Europe, such as IPTV/VOD and the PrivateSpice TV channel.

Wireless sales increased 32% to 2.6 million euro as a result of increased distribution and consumer buy rates.

Total New Media sales was 14.1 million euro, or 57% of total net sales. 2007 is the first year these new media distribution platforms represent more than half of Private's business. The Company expects Internet, wireless and broadcasting sales to increase significantly, given the rapid growth of these platforms and its leadership role in the adult entertainment category.

"During 2007, the combined sales from broadcasting, wireless and Internet was 57% of total sales," Private Media Group, Inc., CFO Johan Gillborg said. "This represents a major shift in our business model and we expect aggressive growth in this area going forward, which will significantly affect the overall growth and operating profit of the Company's business."

Overall, the Company reported a net loss of 0.4 million euro for the twelve months ended December 31, 2007 compared to a net income of 0.5 million euro for the twelve months ended December 31, 2006.

The company remains extremely bullish on the future of IPTV, and is situating itself to take advantage of anticipated growth in that sector, especially in Europe.

"By the end of 2008 and 2009, we expect to have our content available to 7.9 million and 12.0 million European IPTV subscribers, respectively, and the monetization of these subscribers will significantly increase our top line revenues and overall profitability," said Gilborg.

Private is realistic about the future downward trend of DVD sales, but reports increased reorganization to stem losses.

"As we are moving further into a world of 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, during 2007 we started a reorganization of our distribution of DVDs and Magazines. Through this reorganization, we expect to maximize existing sales and over time reduce any further negative impact of this downward DVD trend on our overall business," Gillborg said.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !


Pleasure Product Manufacturers Talk Global Strategies for Success

From branding to shipping, companies with international reach talk to XBIZ about how to appeal to consumers worldwide. At LELO, trade marketing manager Zabrina Law says there is not a lot of variation... More »

E.U. Sex Toy Brands Bolster U.S. Market With Innovation

Europeans are living the American dream. Five weeks of paid vacation, government-funded medicine and education, and a healthier approach to sexual wellness are commonplace for our cousins across the ocean.... More »

2016 Focus on Europe: Ad Networks

If there’s one thing that every internet-based business needs, it’s traffic — that flow of visitors that drives ecommerce, education, social interaction and more. Today, that traffic... More »
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.

Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.



Nov 04 - Nov 06
Edison, New Jersey

2016 Inked Awards

Nov 05 - Nov 05
Edison, New Jersey

XBIZ 2017

Jan 09 - Jan 13
Hollywood, CA

XBIZ Awards 2017

Jan 12 - Jan 12
Los Angeles, CA
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!