'Our comprehensive range of products and services are widely accessible to individual adults worldwide and we wish to make our stock similarly accessible,' says CEO, Berth Milton.
With Milton's comment, Private Media Group Inc., announced that its Board of Directors has authorized a three-for-one dividend of its common stock to be effective for shareholders of record at the close of business on May 30, 2000.
On June 9, 2000, the three-for-one dividend will be distributed to stockholders of record on May 30, 2000 and means only these shareholders of record will receive two free additional shares for every outstanding share held on the record date. Trading in Private Media Group Inc. stock will begin on a dividend-adjusted basis on June 12, 2000.
"Our comprehensive range of products and services are widely accessible to individual adults worldwide and we wish to make our stock similarly accessible," explained Milton. "Recently, our stock has traded as high as $39 and, while we have been delighted with our stock performance to date and expect the positive trend to continue, this three-for-one dividend will ensure that our shares are more accessible to individuals and institutions alike. The overall effect of this dividend will be to make our stock more affordable to investors, increase the liquidity for our Common Stock and increase the distribution of ownership of our Common Stock."
Private Media Group Inc. already announced its first quarter 2000 results last Friday and these financials showed a revenue increase of 31.3% and a net income increase of 34.9%, compared to the first quarter 1999. "Net income for the first quarter 2000 already exceeds half of the total net income for all of 1999," says CEO Berth Milton
Private Media Group Inc. announced revenue of $6.9 million for the first quarter 2000, compared to $5.3 million for the same period last year. Net income for this period was $2.0 million compared to 1.4 million for the comparable period last year. The revenue increase of 31.3% and the net income increase of 34.9% for this period, compared to the same period last year, has been achieved by the very strong growth in Internet and DVD sales. This trend is accelerating and the Company believes that the current year will show considerable growth in revenue and, more significantly, a substantial increase in net income.
DVD sales for the three months ended March 31, 2000 amounted to $950,540 and should not be compared with the first quarter 1999 period since the Company released only a few titles in the same period last year and the global consumer DVD market was not sufficiently developed at that point. DVD sales for three months ended March 31, 2000 almost equaled total sales for 1999 of $1 million. During year 2000, the Company is planning to release 50 new titles and 50 back-catalogue titles.
Internet sales for the first quarter 2000 increased 227.4% to $900,805 compared to the three months ended March 31, 1999.
Results for the first quarter 2000 do not take into account official Company announcements made during the period relating to the Private Gold broadcasting joint venture agreements. Financial results arising from these recent agreements will be recognized and reported according to US GAAP.
Commenting on the First Quarter results Milton said: "Private Media Group continues to grow at a significant rate while creating a very positive blend of New and Old Economy business models. We have unrivalled content in our industry and our distribution platforms are continually expanding.
"Management is particularly encouraged by the substantial increases in DVD and Internet sales, and we feel the Company's foresight in committing to these markets at an early stage in their development has been a contributory factor in our success to date. We are particularly pleased that net income for the first quarter 2000 already exceeds half of the total net income for all of 1999. We aim to continue our forward momentum and view future growth in revenues and profits with extreme confidence."
