New Frontier Reports 4th Quarter Growth

BOULDER, Colo. — Content distributor New Frontier Media has announced positive fourth quarter results in its SEC filing, citing strong earnings from the company’s video-on-demand service and the acquisition of MRG Entertainment as factors contributing to the economic vitality of the firm.

New Frontier reported a $12.9 million increase in revenue for this quarter, up 19 percent from this time last year.

"We are extremely pleased with our fourth quarter results,” said Michael Weiner, CEO of New Frontier. “Overall, I feel that the 2006 fiscal year was a complete success with the acquisition of MRG Entertainment and the continued growth of our revenue from VOD even in the face of increasing competition."

Revenue from the company’s VOD operations, which service both cable and hotel markets nationwide, grew by 41 percent, accounting for the lion’s share of the New Frontier’s growth.

While New Frontier saw strong results from its VOD operations and the newly acquired MRG properties, which mostly consist of softcore and mainstream titles, the company did report lackluster results from its pay-per-view business. PPV operations saw a two percent drop in revenue, according to the company’s quarterly filing. However, Weiner remained optimistic in light of the company’s broad reach.

“We now reach over 120 million network households, making us the most widely distributed brand of adult entertainment in the country," Weiner said.

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