Private Media Group Inc. (PRVT, Financial) filed Quarterly Report for the period ended 2011-09-30.
Private Media Group Inc. has a market cap of $4.6 million; its shares were traded at around $0.2102 with and P/S ratio of 0.1.
September 30, 2011 compared to EUR 2.1 million for the three months ended September 30, 2010. Internet cost as a percentage of related sales in the period was 62% compared to 57% in the same period last year. The decrease of EUR 0.2 million was primarily the result of foreign exchange rate changes and reduced sales. However, Internet cost did not decrease in line with the reduction in sales as website amortization does not vary with sales. There was no broadcasting and wireless cost for the three months ended September 30, 2011 compared to EUR 0.1 million for the three months ended September 30, 2010. The reduction in cost was due to the reversal of provisions for expected broadcasting cost. Printing, processing and duplication cost was EUR 0.3 million for the three months ended September 30, 2011 compared to EUR 0.4 million for the three months ended September 30, 2010, a decrease of EUR 0.2 million, or 35%. The decrease was primarily a reflection of the decrease in sales. Printing, processing and duplication cost as a percentage of DVD & Magazine sales was 53% for the three months ended September 30, 2011 compared to 50% in the same period last year. Amortization of library was EUR 1.0 million for the three months ended September 30, 2011 compared to EUR 1.2 million for the three months ended September 30, 2010. Amortization of library does not vary with sales since it reflects the amortization of our investments in content which has been available for sale for a period of three to five years.
Gross Profit. In the three months ended September 30, 2011, we realized a gross profit of EUR 1.5 million, or 31% of net sales compared to EUR 2.1 million, or 35% of net sales for the three months ended September 30, 2010. The decrease in gross profit as a percentage of sales was primarily the result of reduced sales and the impact of amortization of library and websites which does not vary with sales.
decrease of 14% compared to the same period last year. The reduction in Internet sales was primarily attributable to a decrease in sales from our North American websites as a result of foreign exchange rate changes and a reduction in sales from our Gay Content division. Broadcasting sales decreased EUR 0.5 million to EUR 2.5 million, which represents a decrease of 15% compared to the same period last year. The decrease was primarily the result of fewer newly released titles being broadcasted in 2011. Wireless sales decreased EUR 0.4 million to EUR 0.8 million, which represents a decrease of 36% compared to the same period last year. The decrease was primarily the result of migration from on-portal sales to off-portal sales from Smart Phone users which is included in Internet sales. DVD & Magazine sales decreased EUR 0.9 million, or 37%, to EUR 1.7 million. The reduction in DVD & Magazine sales was primarily attributable to an industry wide decrease in DVD sales in the period.
Cost of Sales. Our cost of sales was EUR 9.7 million for the nine months ended September 30, 2011 compared to EUR 12.1 million for the nine months ended September 30, 2010, a decrease of EUR 2.4 million, or 20%. Included in cost of sales is Internet, broadcasting and wireless, printing, processing and duplication and amortization of library. Internet cost was EUR 5.7 million for the nine months ended September 30, 2011 compared to EUR 7.0 million for the nine months ended September 30, 2010. Internet cost as a percentage of related sales in the period was 58% compared to 61% in the same period last year. The decrease of EUR 1.3 million was primarily the result of foreign exchange rate changes, reduced sales and reduced website amortization as a result of an old website which was decommissioned in May 2010. Broadcasting and wireless cost was EUR 0.1 million for the nine months ended September 30, 2011 compared to EUR 0.2 million for the nine months ended September 30, 2010. The reduction in cost was due to the reversal of provisions for expected cost. Printing, processing and duplication cost was EUR 0.7 million for the nine months ended September 30, 2011 compared to EUR 1.2 million for the nine months ended September 30, 2010, a decrease of EUR 0.5 million, or 38%. The decrease was primarily a reflection of the decrease in sales. Printing, processing and duplication cost as a percentage of DVD & Magazine sales was 45% for the nine months ended September 30, 2011 compared to 46% in the same period last year. Amortization of library was EUR 3.2 million for the nine months ended September 30, 2011 compared to EUR 3.7 million for the nine months ended September 30, 2010. Amortization of library does not vary with sales since it reflects the amortization of our investments in content which has been available for sale for a period of three to five years.
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Private Media Group Inc. has a market cap of $4.6 million; its shares were traded at around $0.2102 with and P/S ratio of 0.1.
Highlight of Business Operations:
Net sales. For the three months ended September 30, 2011, we had net sales of EUR 4.8 million compared to net sales of EUR 5.9 million for the three months ended September 30, 2010, a decrease of EUR 1.1 million, or 19%. Internet sales decreased EUR 0.6 million to EUR 3.1 million, which represents a decrease of 16% compared to the same period last year. The reduction in Internet sales was primarily attributable to a decrease in sales from our North American websites as a result of foreign exchange rate changes and a reduction in sales from our Gay Content division. Broadcasting sales decreased EUR 0.1 million to EUR 0.8 million, which represents a decrease of 15% compared to the same period last year. The decrease was primarily the result of fewer newly released titles being broadcasted in 2011. Wireless sales decreased EUR 0.1 million to EUR 0.3 million, which represents a decrease of 16% compared to the same period last year. The decrease was primarily the result of migration from on-portal2 sales to off-portal sales from Smart Phone users which is included in Internet sales. DVD & Magazine sales decreased EUR 0.3 million, or 38%, to EUR 0.5 million. The reduction in DVD & Magazine sales was primarily attributable to an industry wide decrease in DVD sales in the period.September 30, 2011 compared to EUR 2.1 million for the three months ended September 30, 2010. Internet cost as a percentage of related sales in the period was 62% compared to 57% in the same period last year. The decrease of EUR 0.2 million was primarily the result of foreign exchange rate changes and reduced sales. However, Internet cost did not decrease in line with the reduction in sales as website amortization does not vary with sales. There was no broadcasting and wireless cost for the three months ended September 30, 2011 compared to EUR 0.1 million for the three months ended September 30, 2010. The reduction in cost was due to the reversal of provisions for expected broadcasting cost. Printing, processing and duplication cost was EUR 0.3 million for the three months ended September 30, 2011 compared to EUR 0.4 million for the three months ended September 30, 2010, a decrease of EUR 0.2 million, or 35%. The decrease was primarily a reflection of the decrease in sales. Printing, processing and duplication cost as a percentage of DVD & Magazine sales was 53% for the three months ended September 30, 2011 compared to 50% in the same period last year. Amortization of library was EUR 1.0 million for the three months ended September 30, 2011 compared to EUR 1.2 million for the three months ended September 30, 2010. Amortization of library does not vary with sales since it reflects the amortization of our investments in content which has been available for sale for a period of three to five years.
Gross Profit. In the three months ended September 30, 2011, we realized a gross profit of EUR 1.5 million, or 31% of net sales compared to EUR 2.1 million, or 35% of net sales for the three months ended September 30, 2010. The decrease in gross profit as a percentage of sales was primarily the result of reduced sales and the impact of amortization of library and websites which does not vary with sales.
decrease of 14% compared to the same period last year. The reduction in Internet sales was primarily attributable to a decrease in sales from our North American websites as a result of foreign exchange rate changes and a reduction in sales from our Gay Content division. Broadcasting sales decreased EUR 0.5 million to EUR 2.5 million, which represents a decrease of 15% compared to the same period last year. The decrease was primarily the result of fewer newly released titles being broadcasted in 2011. Wireless sales decreased EUR 0.4 million to EUR 0.8 million, which represents a decrease of 36% compared to the same period last year. The decrease was primarily the result of migration from on-portal sales to off-portal sales from Smart Phone users which is included in Internet sales. DVD & Magazine sales decreased EUR 0.9 million, or 37%, to EUR 1.7 million. The reduction in DVD & Magazine sales was primarily attributable to an industry wide decrease in DVD sales in the period.
Cost of Sales. Our cost of sales was EUR 9.7 million for the nine months ended September 30, 2011 compared to EUR 12.1 million for the nine months ended September 30, 2010, a decrease of EUR 2.4 million, or 20%. Included in cost of sales is Internet, broadcasting and wireless, printing, processing and duplication and amortization of library. Internet cost was EUR 5.7 million for the nine months ended September 30, 2011 compared to EUR 7.0 million for the nine months ended September 30, 2010. Internet cost as a percentage of related sales in the period was 58% compared to 61% in the same period last year. The decrease of EUR 1.3 million was primarily the result of foreign exchange rate changes, reduced sales and reduced website amortization as a result of an old website which was decommissioned in May 2010. Broadcasting and wireless cost was EUR 0.1 million for the nine months ended September 30, 2011 compared to EUR 0.2 million for the nine months ended September 30, 2010. The reduction in cost was due to the reversal of provisions for expected cost. Printing, processing and duplication cost was EUR 0.7 million for the nine months ended September 30, 2011 compared to EUR 1.2 million for the nine months ended September 30, 2010, a decrease of EUR 0.5 million, or 38%. The decrease was primarily a reflection of the decrease in sales. Printing, processing and duplication cost as a percentage of DVD & Magazine sales was 45% for the nine months ended September 30, 2011 compared to 46% in the same period last year. Amortization of library was EUR 3.2 million for the nine months ended September 30, 2011 compared to EUR 3.7 million for the nine months ended September 30, 2010. Amortization of library does not vary with sales since it reflects the amortization of our investments in content which has been available for sale for a period of three to five years.
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