DORI MEDIA GROUP
INTERIM RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2007
Dori Media Group ("DMG" or "Dori Media"), the international media company active
in the field of television, with a focus on production, distribution,
broadcasting and merchandising of Telenovela, today announced its interim
results in accordance with International Financial Reporting Standards (IFRS)
for the first half of 2007.
First Half 2007 - demonstrating consistent revenue growth
-- Group Revenue up 32% to US$12.7 million (US$9.65 million)
-- Gross Profit up 36% to US$9.2 million (US$6.75 million)
-- EBITDA up 8% to US$4.4 (US$4.06)
-- Operating Profit up 9% and reached US$2.5 million (US$2.3 million)
-- Profit before taxes on income increased by 12% to US$2.4 million (US$2.1
million)
-- Total Equity stands at US$23.9 million
-- Net Cash inflow from operating activities up 37% to US$2.28 million
(US$1.67 million)
Operating Highlights
-- Merchandising, Video and music CD ancillary business nearly doubled from
US$2.6 million to US$5.0 million;
-- Telenovela broadcasting and format right sales up 5% to US$5.27 million
(US$5.0 million);
-- International sales accounted for 73% of total sales in H1 2007 while
representing 68% of total revenues in H1 2006;
-- Sales of US$2.6 Million of Telenovelas at MIPTV audiovisual content
market in Cannes (France) with an additional US$3.68 Million in
contractual options;
-- Increased its stake in Darset Productions, Israel's largest and most
successful Telenovela production house, to 50% following the acquisition
of 24.83% of Serendipity Content and Holdings' shares in Darset -
reinforcing DMG's control of the Telenovela market in Israel;
-- Extension of agreement with 'HOT', the biggest multi channel platform in
Israel, for extended carriage of its two Telenovela channels: VIVA and
VIVA Platina;
Recent Developments
-- Dori Media Spike awarded a 3-year contract of between US$17.5 million to
US$22.5 million a year commencing 1 January 2008, totaling US$52.5
million to US$67.5 million for 3 years, to run the Movie and General
Entertainment Channels on 'HOT', a leading cable platform boasting
subscriptions with the majority of Israeli households;
-- Launch and marketing of new Telenovela, "Lalola", in Argentina, which
has already been sold to 10 broadcasters and producers from France,
Russia, Mexico, Albania, Chile and Ecuador;
-- Launch of the first online Telenovela channels in partnership with
Google's YouTube. DMG launched three branded channels on the popular
video-sharing website and make some of its exclusive content available
for the YouTube community;
-- DMG opened a new subsidiary in the United States of America in Miami
called Dori Media America (DMA) with Jose Escalante appointed as CEO;
Outlook
-- Favorable outlook for full year 2007, with anticipated revenue growth
from the opening of DMA, the Group's new subsidiary in the USA, and the
launch of new shows including "Lalola" in the second half of the year.
CEO's comments
Talking about the results, Nadav Palti, President and CEO of Dori Media,
commented: "Once again, we have delivered a strong set of results that further
validates our strategy of international expansion and playing a leading role in
the promotion of the Telenovela genre worldwide.
We continue to capitalize on the popularity of Telenovela by developing multiple
sources of income within this niche market. We did this very successfully during
the first half of 2007 and we remain very comfortable with the current market
expectations. We also recently strengthened our position in the industry by
signing a number of landmark deals that will provide DMG with new opportunities
for future growth.
The strong financial performance for this half year can be attributed to the
increase of sales in our ancillary business (merchandizing, publishing and
music) combined with strong sales of DMG's broadcasting and format rights. Our
gross profit lines also grew, despite our commitments to develop the business by
investing in Darset productions and in new programs such as Lalola.
Recent developments, which occurred just after the close of the reporting
period, also have particular significance; firstly, Dori Media Spike's
successful bid for the rights to produce and operate the HOT premium movie
channels and the series channel is a big achievement and it will significantly
boost our profile both in Israel and in the US. Secondly, our partnership with
Google's YouTube represents our first on-line venture, a field that will open
new opportunities, and thirdly, we very recently announced the opening of a new
US company for Dori Media Group, which will give us a physical presence in what
could become one of the largest Telenovela markets in the world."
Chief Executive Officer's Review
Overview
In the first six months of 2007, DMG has further capitalized on the growing
popularity of the Telenovela genre internationally, by continuing to expand and
also by initiating a number of key developments that will enrich its Telenovela
offering. The increase in DMG's stake in Darset Productions and the opening up
of a new subsidiary in the US demonstrate the Company's commitment to grow
international sales further and become a key player of choice in the US.
Operating update
Dori Media reports sales of US$12.7 million for the 6 months ended 30 June 2007,
up 32% from US$9.65 million for the same period last year. The Company recorded
an operating profit of US$2.5 million in spite of increased marketing costs and
personnel, investment in Darset Productions and in the development of more
content.
The group's first half results were bolstered by the strong revenue growth
coming from DMG's ancillary businesses (merchandizing, publishing, music, CDs,
DVDs and live shows) that nearly doubled from US$2.6 million in H1 2006 to US$5
million in H1 2007; this was attributable to DMG's teen Telenovelas, Rebelde Way
and its Mexican format REBELDE. Revenues from broadcasting rights and format
rights increased by 5% from US$5 million in H1 2006 to US$5.27 million in H1
2007.
Focus on International Growth and New Media
International sales accounted for 73% of total sales in H1 2007 while they
represented 68% of total revenues in H1 2006. The breakdown of international
sales in the period was as follows:
-- 37% generated in Europe, representing 27% of global sales (38% in H1
2006);
-- 49% generated in Central and South America, representing 36% of global
sales (28% in H1 2006);
-- 14% generated in other territories mainly Far East and North America,
representing together 10% of global sales (2% in H1 2006).
In January, DMG announced that the Company has successfully extended its
long-term agreement with 'HOT', the leading cable provider in Israel, for
extended carriage of its two dedicated Telenovela TV channels: VIVA and VIVA
Platina. VIVA is DMG's main channel and is carried as part of HOT's basic
package. VIVA Platina is DMG's premium pay channel. This extension demonstrates
the strength of DMG's VIVA brand, which is very successful in Israel thanks to
its high-quality content and the loyal following it attracts.
In February, an agreement was reached with Serendipity Content and Holdings, one
of the founders of Darset Productions, Israel's largest Telenovela production
house, to purchase 24.83% of Serendipity's shares in Darset Productions for a
total consideration of US$550,000. The transaction was later approved by DMG's
shareholders at the Annual General Meeting in March. Further to the transaction,
DMG's holding in Darset Productions increases to 50%. Prior to the deal, DMG
held a 25.17% equity stake in Darset Productions.
Within a month of DMG's participation in the MIPTV audiovisual content market in
Cannes (France) in April, the Company had sold over 1,560 hours of its
Telenovela series and formats to broadcasters from 11 countries. The value of
DMG's participation at the event is approximately US$6.28 million including
US$3.68 Million in contractual options and including deals that were concluded,
but initiated at MIPTV. Shows sold at the event included the new hit show
"Lalola", which sold extremely well despite it only being at pre-production
stages at the time. "Lalola" has since been sold to over 10 networks in France,
Russia, Mexico, US, Puerto Rico, Chile, Ecuador, El Salvador and Uruguay. Other
DMG shows including "Sos Mi Vida" (You are the One), the comedy "Amor Mio" (My
Love), "Juanita La Soltera" (Juanita is Single), "Collar de Esmeralda" (The
Emerald Necklace) and "El-Refugio" (The Shelter) all contributed to DMG's
successful appearance at MIPTV.
In terms of recent developments, Dori Media Spike (DMS) won a contract in July
to run movie and general entertainment channels on "HOT", the leading Israeli
cable platform. The contract will last 3 years as of January 1st 2008 and is
expected to generate revenues of between US$52.5 million and US$67.5 million
over this period. Dori Media Spike has all the knowledge, resources and
professional experience to run the new operation effectively and fruitfully.
DMG also recently announced the opening of a new subsidiary in the USA with Jose
Escalante, who has over 20 years' experience of selling Telenovela formats,
serving as CEO. The new subsidiary, called Dori Media America (DMA), located in
Miami, was set up to respond to increasing demand for Telenovela series in the
US market. DMA will focus on marketing and distributing DMG's library of
Telenovelas to US media partners and major broadcasters who have recently shown
a growing interest in the Telenovela TV genre. This is an exciting opportunity
for Dori Media to establish itself as a partner of choice for broadcasters in a
region where Telenovelas are increasingly popular both with the Hispanic and
non-Hispanic population.
In August, DMG announced that it has partnered with Google's YouTube to launch
three branded channels on the popular video-sharing website and make some of its
exclusive content available for the YouTube community. Dori Media International,
a fully owned subsidiary of DMG, will update the site daily and fans of
Telenovelas will be able to watch trailers, most memorable scenes, unseen
footage of concerts, both on-screen and behind-the-scene footage, special
interviews with Telenovela stars, out-takes and other videos. This partnership
enables DMG to reach Telenovela fans wherever they are and promote DMG TV series
to an even larger number of viewers, in particular the significant teenage
audience. The agreement also fits in well with the Company's strategy to use new
media platforms to bring audiences together and introduce greater audience
interactivity.
Strong Telenovela Programming
In H1 2007, DMG continued to invest into new TV series and until the end of 2007
is expected to produce and buy rights to approximately 730 hours of TV all from
2007. By the end of 2007, DMG is expected to have a library over 4,000 TV hours.
In June, DMG's Telenovela 'El Refugio' (The Shelter'), one of its most
successful teenage TV drama series, was awarded the 'Accolade Award' for 'Best
of Show 2007'. The 'Accolade' is an international award competition entering its
fifth year, and is considered a top tier television contest. The competition is
organised in the US by high caliber professionals in the film and television
industry and brings together the producers of the most successful films, TV
series and videos each year.
In the end of August, DMG will launch its new successful Telenovela "Lalola" in
Argentina, which has been praised by critics comparing it to "Ugly Betty" and
has already been sold for broadcasting in various other countries. "Lalola"
initially consists of 120 episodes.
Outlook
DMG's strategy remains to continue to capitalise on the growing international
popularity of the Telenovela TV genre in all relevant markets by increasing the
volume of productions, increasing international sales of these productions and
continue to form Telenovela dedicated channels in appropriate markets. The Group
is confident that the positive trends it has experienced during the first half
of 2007 will continue beyond this period. DMG's participation at the MIPCOM
conference has demonstrated the potential level of sales outside its origins in
Latin America as the Telenovela format becomes a global phenomenon. By
partnering with Google's YouTube, Dori Media is the first company to bring its
Telenovela content online, creating three interactive channels for millions of
fans worldwide to enjoy. This new media platform, along with mobile telephony,
represents great new opportunities for the Group to generate additional revenues
and strengthen its audience loyalty. In addition, Dori Media Spike's successful
bid for the rights to produce and operate the HOT premium movie channels and the
series channel is a big achievement that is expected to have a positive impact
on DMG's results from 2008 onwards. Finally, the opening of a new subsidiary in
the US, will enhance Dori Media's presence in this key Telenovela market.
Financial Performance
Revenue
DMG's revenues for the 6 months ended 30 June 2007 reaffirm that the company is
meeting its objective of rapidly expanding outside Israel and diversifying its
income streams with broadcasting rights, distribution and merchandising.
Income from ancillary business (merchandising & publishing, music, DVDs, CDs and
videos) nearly doubled from US$2.6 million in H1 2006 to US$5.0 million in H1
2007. As reported at DMG's FY 2006 results, this increase was principally due to
the broadcasting of 'REBELDE' - Televisa's adapted version of Dori Media's
'Rebelde Way' - in Mexico, Brazil and the United States, and its subsequent
merchandising and ancillary sales in North and South America. The success of
DMG's 'Rebelde Way' in Spain was also complemented by increased sales of related
merchandising, CDs and DVDs in the Iberic peninsula. Merchandising and ancillary
business generated 40% of total revenues for H1 2007.
In the first half of 2007, DMG's Telenovela broadcasting and format rights sales
were up 5% to US$5.27 million, compared to US$5 million in the same period last
year. Broadcasting and format rights sales represent 41% of total revenues in
the period.
Revenues from TV channels increased by 7% from US$2.0 million to US$2.15
million. Revenues generated from technical services, following the creation of
Dori Media OT during H2 2006, reached US$0.2 million in H1 2007. Dori Media OT's
revenues from transactions inside the DMG group during H1 2007 reached US$0.97
million.
Revenues from Indonesian channels for H1 2007 reached US$0.5 million, compared
to US$0.15 million in H1 2006 as the unit had only started operating. As with
any start up operation, initial losses were predicted, but such losses are now
decreasing and the operation is expected to reach break even point during 2008.
Total broadcasting income from DMG's television channels, was US$2.15 million in
H1 2007.
Gross Margins
Gross margins improved to 72% in the 6 months to 30 June 2007 from 69% in H1
2006, with gross profit for H1 2007 increasing by 36% to US$9.2 million compared
with US$6.7 million for H1 2006.
The cost of goods sold in H1 2007 increased by 20% to US$3.5 million compared to
US$2.9 million in H1 2006, which was mainly attributable to:
-- TV channel operation expenses increasing from US$0.7 million in H1 2006
to US$1 million in H1 2007
-- Darset Productions production expenses, which are presented
proportionately at 50%, increasing from US$0.9 million in H1 2006 to
US$1.0 million
-- Commission to third parties increasing from virtually nil to US$0.1
million
Operating Expenses
Total operating expenses amounted to US$6.7 million in H1 2007 (US$4.43
million). The total selling and marketing expenses increased from US$1.83
million in H1 2006 to US$3.39 million in H1 2007 due to commissions from
merchandising revenues (up from US$0.7 million in H1 2006 to US$2.0 million in
H1 2007).
Sales commission decreased from US$0.8 million in H1 2006 to US$0.3 million in
H1 2007 due to the establishment of Dori Media Distribution (DMD), a new
distribution arm established in June 2006. In connection with this, salaries of
sales personnel and convention & exhibition expenses increased significantly
from US$0.1 million in H1 2006 to US$0.9 million in H1 2007. It is important to
note that the majority of the revenues generated from these conventions will be
recorded in future periods, In addition to this, convention expenses were minor
during H1 2006 as Dori Media Distribution was only created in June, at the end
of the half year period.
Administration & General expenses and salaries increased from US$2.6 million to
US$3.3 million due to the growth in the number of employees and establishment of
DMD. Professional expenses including lawyers, auditors and other consultants
increased from US$0.5 million in H1 2006 to US$0.6 million in H1 2007.
Operating Profit
The operating profit was US$2.5 million in H1 2007 as compared to US$2.3 million
in H1 2006.
Financial Expenses
Financial expenses reached US$0.15 million in H1 2007 compared to US$0.20
million in H1 2006 due to increase in cash inflow lowering credit lines from
bank.
Tax Expenses
Tax expenses in H1 2007 are at the effective rate of 21% (US$0.5 million for
profit before tax of US$ 2.36 million).
Net Income
The net income for the six months to 30 June 2007 was US$1.86 million compared
to US$1.72 million in H1 2006.
Cash Flow
Dori Media's cash flow continues to be very strong and positive, facilitating
strong cash generation and the financing of new productions and ventures.
Operating cash flow increased from US$1.67million Net Cash inflow in operating
activities in H1 2006 to US$2.28 million Net Cash inflow from operating
activities in H1 2007.
For further information on Dori Media Group, please visit our website on
www.dorimedia.com or contact:
Dori Media Group Ltd. Shared Value Limited
Nadav Palti, CEO & President Nicolas Duperrier
Tel: +972 3 7684000 / +972 54 4236828 Investor & Media relations
info@dorimedia.com Tel. +44 (0) 20 7321 5010
dmg@sharedvalue.net
Daniel Stewart & Company
Lindsay Mair
Tel. +44 (0) 20 7776 6550
Dori Media Group is an international media group active in the production,
distribution and broadcasting of Telenovela. The Group owns and sells
high-loyalty TV content and branded merchandise attracting a wide variety of
audiences in over 50 countries. Dori Media Group owns and operates the 'Viva'
and 'Viva Platina' Telenovela dedicated TV channels in Israel,'Televiva Vision
2' Telenovela dedicated TV channel and 'Baby TV Vision 3' a toddlers TV channel
in Indonesia. Dori Media Group's production company in Israel is 'Darset
Productions Ltd'. Dori Media Group is controlled by Mapal Communications Ltd,
one of Israel's largest communications company. Dori Media Group is publicly
traded on the AIM Market of the London Stock Exchange. The Company's ticker
symbol is 'DMG'.
CONSOLIDATED STATEMENTS OF INCOME
Six months ended Year ended
30 June 31 December
--------------------------
2007 2006 2006
------------- ------------ ---------------
US$ '000 *) US$ '000 *) US$ '000 *)
------------- ------------ ---------------
Unaudited Audited
-------------------------- ---------------
Revenues 12,700 9,651 20,404
Cost of revenues 3,497 2,904 5,423
------------- ------------ ---------------
Gross profit 9,203 6,747 14,981
------------- ------------ ---------------
Selling and marketing expenses 3,388 1,828 3,946
General and administrative expenses 3,334 2,601 5,611
------------- ------------ ---------------
Total operating expenses 6,722 4,429 9,557
---------------------------------------------------- ------------- ------------ ---------------
Operating profit 2,481 2,318 5,424
Financial expenses, net 152 203 334
Other expenses (income), net (32) - 3
------------- ------------ ---------------
Profit before tax 2,361 2,115 5,087
Taxes on income 497 391 945
------------- ------------ ---------------
Profit for the period 1,864 1,724 4,142
============= ============ ===============
Attributable to:
Equity holders of the parent 1,842 1,724 4,112
Minority interest 22 - 30
------------- ------------ ---------------
1,864 1,724 4,142
============= ============ ===============
Basic and diluted earnings per share 0.09 0.09 0.21
============= ============ ===============
*) Except per share amounts.
The accompanying notes are an integral part of the consolidated financial
statements.
CONSOLIDATED BALANCE SHEETS
As of
As of 30 June 31 December
--------------------------
2007 2006 2006
------------ ------------ ---------------
US$ '000 US$ '000 US$ '000
------------ ------------ ---------------
Unaudited Audited
-------------------------- ---------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 1,651 688 621
Trade receivables 8,947 7,480 9,065
Other accounts receivable 1,397 784 1,097
Broadcasting rights 1,204 1,306 1,178
Inventory of TV series rights for sale 96 117 45
------------ ------------ ---------------
13,295 10,375 12,006
------------ ------------ ---------------
NON-CURRENT ASSETS:
Investments in rights of TV series 16,020 12,288 15,262
Intangible assets, net 4,556 3,210 3,808
Property and equipment, net 2,019 1,011 1,777
Deferred tax assets 1,526 1,526 1,530
------------ ------------ ---------------
24,121 18,035 22,377
------------ ------------ ---------------
Total assets 37,416 28,410 34,383
---------------------------------------------------- ============ ============ ===============
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Credit from banks and current maturities of
long-term loans 4,237 4,024 5,217
Trade payables 3,400 3,376 4,084
Current tax liability 401 - 424
Other current liabilities 1,885 1,642 1,768
------------ ------------ ---------------
9,923 9,042 11,493
------------ ------------ ---------------
LONG-TERM LIABILITIES:
Bank loans 155 - 62
Other long-term liabilities 3,394 2,086 3,083
------------ ------------ ---------------
3,549 2,086 3,145
------------ ------------ ---------------
EQUITY:
Equity attributable to equity holders of the
parent:
Issued capital 471 448 448
Share premium 13,635 11,302 11,329
Foreign currency translation reserve (132) (156) (138)
Asset revaluation surplus 240 240 240
Retained earnings 9,678 5,448 7,836
------------ ------------ ---------------
23,892 17,282 19,715
Minority interest 52 - 30
------------ ------------ ---------------
Total equity 23,944 17,282 19,745
---------------------------------------------------- ------------ ------------ ---------------
Total liabilities and equity 37,416 28,410 34,383
---------------------------------------------------- ============ ============ ===============
The accompanying notes are an integral part of the consolidated financial
statements.
20 August 2007
------------------------ ----------------------- ----------------------- -----------------------
Date of approval of the Tamar Mozes-Borovitz Nadav Palti Moshe Pinto
financial statements Chairman of the Board Director and Chief Financial Officer
of Directors Chief Executive Officer
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to equity holders of the parent
-----------------------------------------------------------
Total
recognized
Foreign income and
currency Asset expenses
Issued Share translation revaluation Retained Minority Total ---------------
capital premium reserve surplus earnings Total interest equity Parent Minority
-------- -------- ----------- ------------ --------- ------ --------- ------- ------ --------
US$ '000 US$ US$ US$
US$ '000 US$ '000 US$ '000 US$ '000 '000 US$ '000 '000 '000 US$ '000
-------- -------- ----------- ------------ --------- ------ --------- ------- ------ --------
Six months ended 30 June
2007 (Unaudited)
Balance at beginning of
period
448 11,329 (138) 240 7,836 19,715 30 19,745 - -
Issuance of shares 23 2,153 - - - 2,176 - 2,176 - -
Exercise of options *) - 26 - - - 26 - 26 - -
Cost of share-based
payments - 127 - - - 127 - 127 - -
Currency translation
differences - - 6 - - 6 - 6 6 -
Profit for the period - - - - 1,842 1,842 22 1,864 1,842 22
-------- -------- ----------- ------------ --------- ------ --------- ------- ------ --------
1,848 22
====== ========
Balance at end of period 471 13,635 (132) 240 9,678 23,892 52 23,944
======== ======== =========== ============ ========= ====== ========= =======
Six months ended 30 June
2006 (Unaudited)
Balance at beginning of
period 448 11,257 (249) 240 3,724 15,420 - 15,420 - -
Exercise of options *) - 6 - - - 6 - 6 - -
Cost of share-based
payments - 39 - - - 39 - 39 - -
Currency translation
differences - - 93 - - 93 - 93 93 -
Profit for the period - - - - 1,724 1,724 - 1,724 1,724 -
-------- -------- ----------- ------------ --------- ------ --------- ------- ------ --------
1,817 -
====== ========
Balance at end of period 448 11,302 (156) 240 5,448 17,282 - 17,282
======== ======== =========== ============ ========= ====== ========= =======
Year ended 31 December
2006 (Audited)
Balance at beginning of
year 448 11,257 (249) 240 3,724 15,420 - 15,420 - -
Exercise of options *) - 6 - - - 6 - 6 - -
Cost of share-based
payments - 66 - - - 66 - 66 - -
Currency translation
differences - - 111 - - 111 - 111 111 -
Profit for the year - - - - 4,112 4,112 30 4,142 4,112 30
-------- -------- ----------- ------------ --------- ------ --------- ------- ------ --------
4,223 30
====== ========
Balance at end of year 448 11,329 (138) 240 7,836 19,715 30 19,745
======== ======== =========== ============ ========= ====== ========= =======
*) Represents an amount lower than US$ 1 thousand.
The accompanying notes are an integral part of the consolidated financial
statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended Year ended
30 June 31 December
--------------------------
2007 2006 2006
------------ ------------ ---------------
US$ '000 US$ '000 US$ '000
------------ ------------ ---------------
Unaudited Audited
-------------------------- ---------------
Cash flows from operating activities:
----------------------------------------------------
Profit for the period 1,864 1,724 4,142
Adjustments to reconcile profit to net cash provided
by (used in) operating activities (a) 416 (54) (407)
------------ ------------ ---------------
Net cash provided by operating activities 2,280 1,670 3,735
------------ ------------ ---------------
Cash flows from investing activities:
----------------------------------------------------
Additions to intangible assets (405) - (201)
Acquisition of newly consolidated subsidiaries,
jointly controlled entity and business (b) (120) - (451)
Investments in rights of TV series, net (1,775) (4,165) (7,103)
Proceeds from sale of property, equipment and
investment properties 32 - 11
Purchase of property and equipment (484) (61) (505)
------------ ------------ ---------------
Net cash used in investing activities (2,752) (4,226) (8,249)
------------ ------------ ---------------
Cash flows from financing activities:
----------------------------------------------------
Receipt of loans 204 - 290
Proceeds from issuance of shares and exercise of
options, net of issuance costs 2,176 6 6
Receipt of long-term production financing 789 795 1,598
Repayment of long-term production financing (711) - (94)
Short-term bank credit, net (956) 347 1,201
------------ ------------ ---------------
Net cash provided by financing activities 1,502 1,148 3,001
------------ ------------ ---------------
Effect of exchange rate changes on cash and cash
equivalents - 11 49
------------ ------------ ---------------
Increase (decrease) in cash and cash equivalents 1,030 (1,397) (1,464)
Cash and cash equivalents at beginning of period 621 2,085 2,085
------------ ------------ ---------------
Cash and cash equivalents at end of period 1,651 688 621
============ ============ ===============
(a) Adjustments to reconcile profit to net cash
provided by (used in) operating activities:
-----------------------------------------------
Income and expenses not involving cash flows:
Cost of share-based payments 153 39 66
Depreciation and amortization 1,903 1,746 3,263
Deferred income taxes 2 88 114
Other 47 14 71
Changes in operating assets and liabilities:
Decrease (increase) in trade receivables 243 (2,180) (3,675)
Increase in other accounts receivable (282) (400) (697)
Increase in short-term investments in rights of
TV series - (48) -
Decrease (increase) in broadcasting rights (796) (1,443) (1,996)
Decrease (increase) in inventory of TV series
rights for sale (43) 2 27
Increase (decrease) in trade payables (591) 1,743 1,672
Increase (decrease) in other current
liabilities (220) 385 748
------------ ------------ ---------------
416 (54) (407)
============ ============ ===============
(b) Acquisition of newly consolidated subsidiaries,
jointly controlled entity and business:
-----------------------------------------------
The fair values of the assets and liabilities
at the date of acquisition were as follows:
Working capital (excluding cash) 52 - -
Investments in rights of TV series (82) - -
Property and equipment (6) - (360)
Goodwill arising on acquisition (325) - (240)
Other intangible assets (125) - -
------------ ------------ ---------------
Total consideration *) (486) - (600)
Less - acquisition on short-term credit 366 - 149
------------ ------------ ---------------
Net cash out flow (120) - (451)
============ ============ ===============
*) 2007 - Net of cash acquired of us $ 64
thousand
(d) Significant non-cash transactions:
-----------------------------------------------
Acquisition of rights in TV series on credit 1,113 476 1,216
============ ============ ===============
Acquisition of assets on short-term credit 366 - 149
============ ============ ===============
The accompanying notes are an integral part of the consolidated financial
statements.
NOTE 1:- GENERAL
a. The interim condensed consolidated financial statements of the Group for the
six months ended 30 June 2007 were authorized for issue in accordance with a
resolution of the directors on 20 August 2007.
b. The Company and its subsidiaries are engaged in the rights purchase,
production and sale of TV series ("Telenovelas"), commercializing their rights
and broadcastings channels ("TV channels").
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES
The interim condensed consolidated financial statements for the six months ended
30 June 2007, have been prepared in accordance with IAS 34, "Interim Financial
Reporting". These financial statements should be read in conjunction with the
Company's audited annual financial statements and accompanying notes as of 31
December 2006 ("the annual financial statements"). The significant accounting
policies and methods of computations applied in the preparation of the interim
financial statements are the same as those applied in the annual financial
statements as of 31 December 2006.
NOTE 3:- JOINTLY CONTROLLED ENTITY
In February 2007, the Company signed an agreement with a shareholder of Darset
Productions Ltd. ("Darset") for the purchase of an additional 24.83% of Darsets'
equity in consideration of US$ 550 thousand including US$ 125 thousand for a
non-competition commitment by the selling shareholder. The total consideration
is to be paid over a period ending in 2008 This amount is included in intangible
assets and is being amortized over a period of 5 years. Goodwill on the
acquisition amounted to US$ 325 thousand. Subsequent to the acquisition, the
Group's interest in Darset is 50% and Darset's financial statements are 50%
proportionately consolidated (in prior years was 25.17% proportionately
consolidated).
NOTE 4:- EQUITY
a. On 14 March, 2007, the Company issued 971,129 Ordinary shares with
institutional investors in consideration of US$ 2,176 thousand (net of issuance
expenses in the amount of US$ 157 thousand).
b. Share option grant:
On 15 March 2007, the Company granted share options for the purchase of 411,500
Ordinary shares to directors, officers and employees under the Company's 2004
Share Option Plan. The options have an exercise price of � 1.3933 (US $ 2.8) and
vest over periods of up to four years. The average fair value of the options
granted is $ 1.74 per share.
NOTE 5:- BUSINESS SEGMENTS
a. General:
The Group companies operate in two principal business segments: production, sale
and distribution of TV series and broadcasting of TV channels. In prior years,
the Company reported information on a third segment, which is no longer reported
separately, since most of its revenues are derived from inter-segment sales.
b. The following data is presented in accordance with IAS 14:
Six months ended 30 June 2007 (Unaudited)
---------------------------------------------------------
Rights of Broadcasting
TV of TV Total
series channels Others Adjustments consolidated
--------- ------------ -------- ----------- -------------
US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
--------- ------------ -------- ----------- -------------
Revenues:
Sales to external
customers 10,273 2,156 271 - 12,700
Intersegment sales 136 - 967 (1,103) -
--------- ------------ -------- ----------- -------------
Total revenues 10,409 2,156 1,238 (1,103) 12,700
--------------------------- ========= ============ ======== =========== =============
Segment results 3,371 52 191 (127) 3,487
========= ============ ======== ===========
Unallocated expenses (1,006)
-------------
Operating profit 2,481
=============
Six months ended 30 June 2006 (Unaudited)
---------------------------------------------------------
Rights of Broadcasting
TV of TV Total
series channels Others Adjustments consolidated
--------- ------------ -------- ----------- -------------
US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
--------- ------------ -------- ----------- -------------
Revenues:
Sales to external
customers 7,641 2,010 - - 9,651
Intersegment sales 88 - 75 (163) -
--------- ------------ -------- ----------- -------------
Total revenues 7,729 2,010 75 (163) 9,651
--------------------------- ========= ============ ======== =========== =============
Segment results 2,735 180 62 - 2,977
========= ============ ======== ===========
Unallocated expenses (659)
-------------
Operating profit 2,318
=============
Year ended 31 December 2006 (Audited)
---------------------------------------------------------
Rights of Broadcasting
TV of TV Total
series channels Other Adjustments consolidated
--------- ------------ -------- ----------- -------------
US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
--------- ------------ -------- ----------- -------------
Revenues:
Sales to external
customers 15,982 4,217 205 - 20,404
Intersegment sales 272 - 427 (699) -
--------- ------------ -------- ----------- -------------
Total revenues 16,254 4,217 632 (699) 20,404
--------------------------- ========= ============ ======== =========== =============
Segment results 7,224 (325) 211 (129) 6,981
========= ============ ======== ===========
Unallocated expenses (1,557)
-------------
Operating profit 5,424
=============
NOTE 6:- EVENTS AFTER THE BALANCE SHEET DATE
On 15 July 2007, Dori Media Spike Ltd. (DMS), a newly formed 75% owned
subsidiary of the Company, signed an agreement to operate certain channels for
'HOT', the Israeli cable multi channel platform. HOT granted DMS rights to
produce and operate the existing HOT premium movie channels and other new
channels and services for three years commencing January 2008. The agreement is
renewable at Hot's option for three additional periods of one year each.
Dori Media (LSE:DMG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Dori Media (LSE:DMG)
Historical Stock Chart
From Jul 2023 to Jul 2024