Private Media Group reported a 9 percent sales increase for the second quarter compared to the same period a year earlier.
The company reported a profit of 520,000 euros on 7.7 million euros in revenue for the quarter ending June 30, 2006 compared to the same quarter a year ago when it posted a 641,000 euro loss on 7.7 million euros in revenue.
During the quarter, the company reported a gross profit of 3.7 million euros or about 48 percent of net sales, compared to a year earlier when it reported a 2.9 million euros or about 41 percent of net sales.
In a statement, the company credited the sales increase on its growth in high margin sales from its wireless and broadcasting platforms.
Johan Gillborg, Private’s chief financial officer, said he expected the company’s revenue to continue to grow in the video-on-demand segment as well as its television broadcast and wireless segments.
In June the company signed deals to provide content to various wireless services throughout Europe, giving the company access to more than 404 million cell phone users on the continent.
Moreover, the company has also expanded its reach on its broadcast side with deals with Playboy TV in Latin America where it will provide content and in Europe where it merged operations to create the Private Spice channel.
“In November 2005, we signed a five-year agreement with Playboy TV International to merge our two adult Pay-TV channels, Private Gold and Spice Platinum Europe, thereby consolidating market leadership in the region,” Gillborg said.
“We expect this new channel to start having an impact on profits during the second half of 2006.”
Meanwhile, the company said Tuesday that it is also considering the possibility of moving from the NASDAQ stock exchange to the AIM market on the London Stock Exchange. The AIM market is made up of small cap firms located around the world.
The company was trading today at $4.32 per share. Its 52-week high was $5.55, reached on Feb. 27, with a 52-week low of $1.87 reached on Oct. 3.
Private is a multi-platform-based adult entertainment company, offering subscription-based porn through movies, magazines, the Internet, its broadband video on demand site, along with live sex chat, adult personals, DVD rental service, and an online shop.
