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Magna Pacific on track for $2.63 profit in 03/04
Source: MELBOURNE, Nov 26 AAP
Published: Wednesday November 26 2003, 3:45 PM
Independent film and video distributor Magna Pacific Holdings Ltd said strong sales in the September quarter were expected to continue as new DVD's were released for the Christmas rush.
Magna Pacific reported a record 2003/04 first quarter result with the company's unaudited net profit lifting 160 per cent to $945,000, it said.
Managing director Allan Radley said with continuing strong sales the board was comfortable with its 2003/04 net profit forecast of $2.63 million.
Mr Radley told today's annual general meeting that Magna Pacific's reduced DVD manufacturing costs, price-driven product ranges and expansion into new sectors of the DVD market had contributed to the record result. advertisement
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"We are now seeing the impact of considerable cost saving we were able to secure in raw DVD materials for this financial year," Mr Radley said.
Strong marketing of discount priced DVD ranges and the move into new children's titles also contributed.
Shareholders were told Magna Pacific and its new cornerstone investor, billionaire Richard Pratt's Thorney Holdings Pty Ltd, would release another 50 titles between now and Christmas.
"With such a diverse product range, these strong sales have continued in quarter two, which is traditionally our best quarter," Mr Radley said.
Mr Radley said that while first quarter results had exceeded expectations there was historically some variance between quarters with the impact of new releases.
"The board remains comfortable with its forecast net profit after tax of $2.63 million for the financial year ending 2004.
"(And) while there will be a dilution effect on earnings per share due to options still to be exercised and our subscription agreement with Thorney Holdings Pty Ltd, this will be offset by an increase in forecast profit."
Last month Thorney, the Pratt family's private equity company, made the first instalment of a $4 million equity deal giving it a 15 per cent stake in Magna Pacific.
Mr Radley said the company had more than $13 million cash on hand and expected to raise more than $11 million through its current options issue set to expire in February 2004.
"As well as investing in new product we are continuing to look at synergistic relationships an acquisition opportunities that will create further value for our shareholders," he said.
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Source: MELBOURNE, Nov 26 AAP
Published: Wednesday November 26 2003, 3:45 PM
Independent film and video distributor Magna Pacific Holdings Ltd said strong sales in the September quarter were expected to continue as new DVD's were released for the Christmas rush.
Magna Pacific reported a record 2003/04 first quarter result with the company's unaudited net profit lifting 160 per cent to $945,000, it said.
Managing director Allan Radley said with continuing strong sales the board was comfortable with its 2003/04 net profit forecast of $2.63 million.
Mr Radley told today's annual general meeting that Magna Pacific's reduced DVD manufacturing costs, price-driven product ranges and expansion into new sectors of the DVD market had contributed to the record result. advertisement
advertisement
"We are now seeing the impact of considerable cost saving we were able to secure in raw DVD materials for this financial year," Mr Radley said.
Strong marketing of discount priced DVD ranges and the move into new children's titles also contributed.
Shareholders were told Magna Pacific and its new cornerstone investor, billionaire Richard Pratt's Thorney Holdings Pty Ltd, would release another 50 titles between now and Christmas.
"With such a diverse product range, these strong sales have continued in quarter two, which is traditionally our best quarter," Mr Radley said.
Mr Radley said that while first quarter results had exceeded expectations there was historically some variance between quarters with the impact of new releases.
"The board remains comfortable with its forecast net profit after tax of $2.63 million for the financial year ending 2004.
"(And) while there will be a dilution effect on earnings per share due to options still to be exercised and our subscription agreement with Thorney Holdings Pty Ltd, this will be offset by an increase in forecast profit."
Last month Thorney, the Pratt family's private equity company, made the first instalment of a $4 million equity deal giving it a 15 per cent stake in Magna Pacific.
Mr Radley said the company had more than $13 million cash on hand and expected to raise more than $11 million through its current options issue set to expire in February 2004.
"As well as investing in new product we are continuing to look at synergistic relationships an acquisition opportunities that will create further value for our shareholders," he said.
Video News
AFR Multimedia Archive
