Adult video producer and distributor New Frontier Media saw its shares rise today after the company reported a 40 percent increase in its profit for the second quarter over year-ago numbers.
The Boulder, Colo.-based company reported a $3.5million profit for the quarter ending June 30, for 15 cents a share compared to a year ago when it posted a $2.5 million profit for 11 cents a share. Revenue also increased by 48 percent to $16.3 million from $11 million during the period.
Its stock closed at $7.50 per share or up by 12 percent over the previous day’s closing number. The stock’s 52-week high was $9.38 per share, reached on April 18, with a 52-week low of $5.40 per share, reached on Oct. 27.
New Frontier Media owns Colorado Satellite Broadcasting, The Erotic Networks, and its low-powered direct-to-home networks, TENXtsy and TENMax.
The company also raised its guidance for fiscal 2007 and now expects revenue of between $60 million and $62 million, with earnings per share between 42 cents and 47 cents.
“This quarter, we experienced strong growth on two different fronts,” said Michael Weiner, New Frontier’s chief executive.
“Our core business was driven by the April launch of two of our pay-per-view services on DirecTV, while the consolidation of our newly acquired film production company, MRG Entertainment, added materially to our revenue. We are very pleased with our first quarter, and have increased annual guidance accordingly.”
New Frontier’s Pay TV Group reported $12.6 million in revenue for the quarter compared to $10.4 million a year ago for a 21 percent increase.
Of that, revenue from the Pay TV Group’s pay-per-view services grew by 23 percent, to $7.5 million from $6.1 million last year. Revenue from the Pay TV Group's video-on-demand service provided both to the cable and hotel markets increased 31 percent to $4.6 million, from $3.5 million last year.
