New Frontier Sees Strong Quarterly Revenue

BOULDER, Colo. — Adult content producer and distributor New Frontier Media reported a 48 percent increase in quarterly revenue, attributing the bulk of its success to gains made in the company’s pay-per-view TV and film production businesses.

Operating under the TEN brand label, New Frontier provides adult content on seven channels to various cable, satellite and hotel platforms, employing both PPV and video-on-demand subscription models.

New Frontier saw an increase in net income of 40 percent to $3.55 million, up from $2.46 million for the same quarter last year. The company’s quarterly sales jumped from $11.04 million to $16.33 million, a 48 percent increase.

According to New Frontier CEO Michael Weiner, the company’s recent success in the pay TV market is due in large part to the launch of two new services on DirecTV.

The April launch of the two New Frontier channels on DirecTV came at the expense of rival Playboy Enterprises, which announced quarterly loses stemming from increased TV competition.

"There was concern earlier in the year that after years of New Frontier taking market share from Playboy, Playboy was striking back," Merriman Curhan Ford analyst Eric Wold said. “They successfully took two channels from Playboy on DirecTV."

New Frontier saw a 21 percent spike in its TV revenues, which grew from $10.4 million to $12.6 million.

The company also cited an increase in VOD revenue on systems where operators had changed their standards to allow for more explicit content as a reason for its strong overall fiscal outlook.

Weiner also attributed some of New Frontier’s success to consolidation of MRG entertainment, its recently acquired film production arm.

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