Private Media Announces Positive 4th Quarter Results

BARCELONA — Private Media Group, an adult industry media conglomerate, announced a 20 percent increase in sales and positive 4th quarter growth resulting from gains in a number of its operations.

Private Media, which distributes adult content in more than 40 countries and online, reported a net income of 100,000 euros for the quarter, a marked increase over last year’s 2.4 million euros loss for the same period.

Broadcasting and wireless sales saw the biggest gains, increasing 297 percent and 259 percent, respectively.

Private Media created a dedicated mobile division early in 2005. By year’s end the company tallied 33 mobile operators delivering content to users in 19 countries.

Broadcasting growth, according to Private Media CFO Johan Gillborg, has been fueled by deals with Playboy TV Latin America and increased interest in licensing content in Asia.

Late in the 4th quarter, Private Media announced plans to consolidate its European TV interests by launching Private Spice this May.

Overall, Gillborg attributed the company’s success in the last quarter to a growing library of content.

"During 2005, we increased our investment in our library of photographs and videos by 69 percent compared to the same period in 2004 and subsequently we will release more new proprietary movie titles in 2006,” Gillborg said. “We expect the increase of new movie releases in 2006 to result in increased DVD sales.”

DVD sales for Private Media rose by five percent to 3.7 million euros. Video sales continued to decrease, as that format loses popularity.

While video-on-demand saw an 86 percent growth in revenues, the company expects that number to be bigger in the coming year. According to Gillborg, as the platform for content delivery takes hold and Private Media contracts with more providers, VOD should add significantly to the company’s future balance sheets.

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