Private Takes a Loss on Third Quarter to Prepare For Cable

Private Media Group Inc., announced their third quarter results last week.  The European-based adult entertainment company didn’t perform as well in the three months leading up to September 30 as they did last year, announcing revenues of roughly $11 million compared to $13 million last year during that same time period.

“The third quarter was weaker than expected primarily due to the decision to release a number of key productions in the 4th quarter,” Charles Prast, president and CEO of Private Media Group, said in a statement. “We remain confident that total annual revenues will surpass 2002 despite the short term loss of broadcasting income.”

Another factor was that Private decided not to licence their movies to cable in the United States in anticipation of the launch of the Private Fantasy Channel and the Private Blue Channel in the U.S. sometime before the end of the 2003. The channels will be available on pay-per-view.

The broadcast division fell 44 percent, reflecting the absence of U.S. sales. Video and magazine sales fell 25 percent, from $4.7 million to 3.5 million, while DVD sales rose 6 percent to $5.5 million.

The dollar amounts given in this story have been converted from Euros, the monetary unit that Private reports in. They were then rouded to the nearest hundred thousand.