BARCELONA—Private Media Group has released its third-quarter results. Overall, the Barcelona-based publicly traded company reported net sales of EUR 5.9 million compared to net sales of EUR 5.8 million for the same period last year.
“The increase was the result of increased Internet sales offset by decreases in sales of DVD and magazines and broadcasting. Internet sales increased EUR 0.8 million to EUR 3.7 million, which represents an increase of 29% compared to the same period last year,” the company stated in a press release issued Tuesday. “We realized a gross profit of EUR 2.1 million, or 35 percent of net sales compared to EUR 2.2 million, or 38 percent of net sales for same period last year. The decrease in gross profit was primarily the result of less gross profit from DVD & Magazine sales offset by increased gross profit from Internet and Broadcasting sales and reduced amortization of library.
“We reported an operating loss of EUR 2.5 million compared to an operating loss of EUR 1.5 million for the same period last year,” the statement continued. “The EUR 1.0 million increase in operating loss was the result of increased selling, general and administrative expenses and reduced gross profit. We reported a net loss of EUR 2.6 million compared to EUR 1.2 million in net loss for the same period last year.”
Looking forward, Private CFO, Johan Gillborg stated, “As part of our digital strategy, we have established that the combination of Private with major online retailers and accomplished platform developers is the approach to achieving our goals in the rapidly changing business landscape. The combined content assets of Private and core competencies of GameLink and Sureflix offer a compelling new business model. We will be expanding our joint Internet strategies globally with additional formats and applications to be launched in 2011.
“Additionally,” he added, “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.”
For more financial information about Private Media Group, visit www.prvt.com.