Great announcement today. Strong growth in an interesting market. MPH has not been discovered yet and therefore is still cheap!
MAGNA PACIFIC (HOLDINGS) LIMITED 2002-07-23 ASX-SIGNAL-G
HOMEX - Brisbane
+++++++++++++++++++++++++ Australia`s largest independent film distribution company Magna Pacific (Holdings) Limited (MPH) said strong growth in DVD sales would drive revenues up 60% this financial year to more than $20 million, from $12.5 million in 2002.
DVD movie sales in Australia increased 204% to 791,607 for the year to June 30, 2002 from 260,211 DVD movies sold in financial 2001, according to independent market research company GfK Group.
MPH managing director Allan Radley said DVD movie sales was one of the main drivers for growth for the Brisbane-based company, which buys the rights for movies and distributes them on DVD, video, television and through the cinemas.
"DVD now represents more than 60 percent of our business in revenue and the impact of DVDs hasn`t fully hit here in Australia yet," he said.
"We believe we are at about 1989 in equivalent terms to the CD business and DVD will follow."
"The growth is so strong that in the next three months, we will produce more DVDs than for last full financial year."
Mr Radley said strong growth would also be seen in DVD hardware with about 1.4 million DVD players in Australia, expected to grow to about 2 million by Christmas.
He said MPH would also benefit this year from the roll out of up to 12 cinema release movies through the company`s partnership with listed Australian company Becker Group Ltd.
"The strength of the DVD market is that everyone has embraced one technology, unlike video where the technology was split between VHS and BETA," he said.
"DVD technology has been so well embraced, I can see it staying for 15-20 years."
Magna Pacific has 110 titles on DVD and will have a total of 240 titles on DVD by the end of financial year 2003. Recent titles released include Australianmovie Rabbit Proof Fence; internationally acclaimed romantic comedy Amelle; and Enigma with Kate Winslet.
The company holds one of the largest independent film libraries in Australia with in excess of 3000 titles, including movies such as Dances with Wolves; Wonder Boys; Four Weddings and a Funeral and Primary Colors.
Magna Pacific`s DVD of Australian WW1 epic, The Lighthorsemen, recently received a DVD Excellence Award for Audio Quality and Presentation at the 2002 DVD Excellence Awards in Los Angeles. One of the first Australian film DVDs to combine Dolby Digital 5.1 and DTS audio tracks, The Lighthorsemen took its place in the top echelons among titles including Pearl Harbour and Atlantis: The Lost Empire.
Magna Pacific expects net profit before tax for financial year ended 2002 will be between $900,000 and $1 million, with NPBT expected to grow to $1.7 million for the financial year ending 2003.
BACKGROUND ON GFK GROUP
GfK Group is an internationally recognised market research firm which provides the film, video, DVD and cinema industry with independent figures on sales within the sector. GfK was established 68 years ago and has offices in 51 countries and is one of the leading market research companies in the world.
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