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Brisbane based film Distribution Company, Magna Pacific (Holdings) Limited (MPH) has
experienced another successful year which has seen it consolidate its ownership, significantly increase its DVD market penetration and enter new and related distribution
channels.
Highlights and developments outlined by MPH Chairman, Mr Mark Elliott, include: Financial Outlook:
The company has forecast a NPAT of $6.35 million for the first half including $4.35 million
from normal operations (up 118% on previous corresponding period of $2 million) and $2 million from the sale of shares in Becker Group Limited (BKR).
MPH recently forecasted a full year profit of $9.25 million for fiscal year 2005 including the $2 million one off BKR share sale profit.
Magna Pacific New Zealand:
Magna Pacific Pty Ltd (MPPL), fully owned subsidiary of MPH, recently acquired the 49% minority shareholding in Magna Pacific New Zealand. The company is now a wholly owned
subsidiary of MPPL. The New Zealand market is approximately one year behind the Australian DVD market and is set to experience the explosive DVD growth experienced in Australia.
Future Product:
· MPH will exclusively negotiate the rights for BKR's existing theatrical catalogue and is currently conducting a due diligence in order to determine if it can agree on a
value with BKR. · MPH recently acquired over 300 feature films, the majority from prestigious British film library "Rank", providing the company with an extensive product flow of DVD titles. · The library includes the Doctor Incomedy franchise, movies from the Carry On series as well as Lawrence Olivier's Oscar winning Shakespeare adaptations Hamlet andHenry V. · Other recent acquisitions include 200 hours of documentary titles from the History Channel · MPH will commence releasing these titles in April 2005.


AGM was quick with shareholders very happy with company performance. Titles like Strange Bedfellows and Supersize Me plus better than expected general demand has allowed the profit upgrade in what was expected to be a flatter year pending acquisition of new titles.

Note the acquisition of Rank Library, Carleton America and 200 hours from History channel. Currently negotiating to buy the Becker titles to which they already have rights for 15 years (likely to save $1.5m per year in royalties). Note that NZ now 100% owned and their market lags Australia by 1 year so should be good growth there.
Double digit growth expected to continue and new premises will allow large expansion. Building will be leased back on completion.
Looks like more of the same so I continue to hold.