achtung Magna Pacific 901889

Strong DVD grwoth doubles MPH`s Q3 Revenue
28-05 1102


Magna Pacific (Holdings) Limited on Wednesday said exceptional growth
in DVD sales had underwritten a record third quarter result for the
company, with revenues doubling and net profit up 216 percent on the
previous corresponding period.

The company booked net profit before tax (NPBT) of $680,000
(unaudited) on revenue of $6.57 million for the third quarter,
compared to NPBT of $215,000 on revenue of $3.28 million in the
previous year.

Managing director Allan Radley said Magna Pacific had exceeded its
own internal forecast, with DVD growth outstripping expectations for
the traditionally slow third quarter period.

This result brings Magna Pacific's revenue for the year to date to
$20.91 million (more than double the previous corresponding period of
$10.18 million), and NPBT for the year to date to $1.84 million (also
more than double the previous corresponding period of $798,000).

Mr Radley said Magna Pacific had also invested heavily in marketing
initiatives to dominate the under $15 price range, which is the
fastest growing price bracket in DVD retail sales.

"We have positioned ourselves exceptionally well, and we now control
more than 50 percent of the important under $15 range."

He said the location of all Magna's operations (from manufacturing to
distribution) under one roof gave the company a tremendous cost
advantage.

"We can draw on more than 3000 movies from our library and with the
cost of a number of these titles already previously recovered, the
company is now at a point where it is highly profitable," he said.

"As volumes increase we are also receiving the advantages of