DORI MEDIA GROUP
FINAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 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 final results
in accordance with International Financial Reporting Standards (IFRS) for the
year ended 31 December 2007.
Full Year 2007 - Dori Media posts record annual results
-- Group Revenue up 47% to US$30 million (US$20.4 million)
-- Gross Profit up 48% to US$22.1 million (US$14.98 million)
-- EBITDA up 49% to US$13 million (US$8.69 million)
-- Operating Profit up 54% to US$8.3 million (US$5.4 million)
-- Profit before tax increased by 60% to US$8.15 million (US$5.09 million)
-- Profit after tax increased by 61% to US$6.6 million (US$4.1 million)
-- Total Equity stands at US$38 million
Second Half 2007 - Continuing trend of strong revenue growth
-- Group Revenue up 61% to US$17.32 million (US$10.75 million)
-- Gross Profit up 58% to US$12.92 million (US$8.2 million)
-- EBITDA up 87% to US$8.6 million (US$4.6 million)
-- Operating Profit up 89% to US$5.87 million (US$3.1 million)
-- Profit before tax increased by 94% to US$5.79 million (US$2.98 million)
Operating Highlights
-- Telenovela broadcasting and format rights sales up 71% to US$18 million
(US$10.5 million);
-- Merchandising, music, DVD and the live show ancillary businesses up
21.4% from US$5.6 million to US$6.8 million;
-- Revenues from TV Channels grew 14.3% from US$4.2 million to US$4.8
million;
-- Sales of US$6.3 Million of Telenovelas at MIPCOM audiovisual content
market in Cannes with potential total rising to US$9.9 Million inclusive
of contractual options;
-- Dori Media Spike won a contract to run movie and general entertainment
channels on 'HOT'. 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 the period. The contract also gives 'HOT' the
option to renew the contract on a twelve month basis for an additional 3
years;
-- Darset Productions, Israel's largest and most successful Telenovela
production house, becomes a fully consolidated subsidiary of DMG
following an increase in DMG's stake in the production house to 87.5%;
-- Acquisition of a 50% stake in Dori Media Central Studios (DMCS)
(formerly Central Park Productions) in Buenos Aires, guaranteeing studio
production time and a US$3.6 million deal to let one studio to Ideas Del
Sur for three years;
-- DMG opened a new subsidiary in the United States of America in Miami
called Dori Media America (DMA) with Jose Escalante appointed as CEO, to
cater for the growing demand for Telenovela in the US market;
Recent Developments
-- "LaLola" proves to be a big global hit having been sold to 30 countries
in less than one year. DMG recently signed a deal with Sony Pictures
Television ("SPT") in the United States for the format rights of
"LaLola". SPT will convert the show into a series adapted for the U.S.
audience.
Outlook
-- The outlook for 2008 is very positive, particularly given "LaLola"'s
growing status in the market, as well as the anticipated revenue growth
from the continuing success of Dori Media Distribution and Dori Media
America, the Group's US subsidiary.
-- Dori Media Spike's agreement with 'HOT', the biggest multi channel
platform in Israel, to run their movie and general entertainment
channels, has made a very promising start with revenues expected to
reach between US$52.5 million and US$67.5 million over the next 3 years.
-- DMG's stakes in Darset Productions and Paran Productions is expected to
contribute positively to DMG's financial results moving forward,
following their consolidation into Dori Media Group's accounts. Both
production houses will continue to produce and sell Israeli Telenovelas
domestically and globally, further strengthening Dori Media's market
positioning and broadening the Group's exposure to other forms of TV
programming.
-- Dori Media's Latin American revenues will increase through the leasing
of one of its three newly acquired Buenos Aires Television Studios to
Ideas Del Sur for a total sum of US$3.6 million over three years. DMG
will also be able to realize some potential cost savings through the
usage of these studios for future productions.
CEO's comments
Talking about the business results, Nadav Palti, President and CEO of Dori
Media, commented: "2007 has been a remarkable year of growth and expansion for
Dori Media. Not only have the Company's revenues increased by another 47%, but
we were able to maintain our gross margins in spite of the significant
investments we have made and hold our position right at the heart of the growth
areas of the Telenovela market.
Our strong financial performance for 2007 is mainly attributable to the
substantial increase in the sales of broadcasting and format rights of our
shows. Our ability to produce award winning shows such as "LaLola" is central to
the recipe for our success and DMG's deal with Sony Pictures Television for the
rights to broadcast "LaLola" in the USA will go a long way towards providing
recognition for our leading role as the main promoters of the Telenovela genre
worldwide."
In 2008 we expect to continue to meet global demand for Telenovela by increasing
the volume of productions and by launching more Telenovela dedicated channels
both on Television and on-line. We also intend to further capitalize on the
popularity of this genre by strengthening the ancillary businesses which
continue to perform well.
Chief Executive Officer's Review
Overview
2007 was a very important year for Dori Media as the Company took significant
strides to imprint its influence over the growing global Telenovela industry.
The Company purchased 75% of Paran Productions to further increase its 50% stake
in Darset Productions to 87.5%; it opened up a new subsidiary in the US (Dori
Media America - "DMA") and acquired a 50% stake in Dori Media Central Studios
(formerly Central Park Productions) in Buenos Aires. DMG took these steps to
demonstrate the Company's commitment to growing international sales further and
become a key player of choice in Latin America and the US. These efforts have
been richly rewarded in a short period of time; Dori Media has managed to
diversify its income streams and started to establish a key presence in the US
market by selling the format rights of "LaLola" to Sony which will help "LaLola"
realize its potential as the biggest and most successful Telenovela on the
market today.
Operating update
Dori Media recorded sales of US$30 million for the 12 months ended 31 December
2007, up 47% from US$20.4 million for the same period last year. The Company
recorded a strong increase in profit before tax from US$5.09 million in 2006 to
US$8.15 million in 2007, a rise of 60%, in spite of increased investments in
sales and marketing, production, personnel and the development of more content.
Profit after tax increased by 60% to US$6.6 million (US$4.1 million).
The group's full year results were supported by the strong revenue growth coming
from the increased broadcasting of DMG's Telenovelas and an increase in format
right sales, up 71% from US$10.5 million in 2006 to US$18million in 2007. Strong
sales of "LaLola", as well as continuing strong sales of "Rebelde Way"
"El-Refugio", "Sos Mi Vida", "Juanita la Soltera", "Mannequins" and "the
Champion" were the main contributors.
Focus on International Growth and New Media
International sales accounted for 73% of total sales during 2007 while they
represented 73.3% of total revenues in 2006. The breakdown of international
sales in the period was as follows:
- 46% generated in Europe, representing 33.5% of global sales (36.1% in 2006);
- 43.9% generated in Central and South America, representing 32% of global sales
(34.5% in 2006);
- 10.1% generated in other territories mainly Far East and North America,
representing
A combined 7.5% of total global sales (2.7% in 2006).
In January, Dori Media 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 (DMG's main channel and part of 'HOT's basic TV
package) and VIVA Platina (DMG's premium pay channel). Further to this, in July,
Dori Media Spike (DMS) won a contract to run movie and general entertainment
channels on 'HOT'. 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. The deal is a big achievement for DMG and it will
significantly boost the Company's profile both in Israel and in the US.
Other important operational developments include an agreement signed in October
by Dori Media International GmbH, a fully owned subsidiary of DMG, to acquire,
for the sum of US$1.1 million, a 50% stake in Central Park Productions S.A. (now
Dori Media Central Studios S.A), an Argentinean T.V. production company
specializing in owning and operating TV Studios and production services, which
owns production facilities and TV studios in Buenos Aires. Central Park has
produced more than 30 of its own productions, including several for DMG. Their
studios are fully equipped and have the capability to film outdoors, on
location. The deal gives Dori Media guaranteed access to, and production time
at, the busy studios. In December, DMG announced that Dori Media Central Studios
had agreed to let one of its three Buenos Aires Television studios to leading
Argentinean producer, Ideas Del Sur. The rental agreement runs over three years
from January 2008 and will generate an additional US$3.6 million for DMCS over
the letting period.
In November, Dori Media increased its stake in Darset Productions, Israel's
largest and most successful Telenovela production house, from 50% to 87.5% by
acquiring a 75% stake in Paran Productions Ltd, a 50% stakeholder in Darset, for
a total consideration of US$1.6 million and 75,000 DMG share options. DMG
previously owned 50% of Darset following an investment of US$550,000 for a
further 24.83% stake at the beginning of 2007. Darset has therefore become a
fully consolidated subsidiary of DMG. As well as strengthening Dori Media's
leadership of the Telenovela market both in Israel and around the Globe, DMG's
relationship with Darset further improves the Company's overall production
abilities and broadens DMG's exposure to other forms of TV programming.
In August, DMG 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.
2007 was a very successful year once again for Dori Media at the MIPCOM
audiovisual content market in Cannes (France), where, as reported in December,
DMG closed deals worth more than US$6.3 million with the potential total rising
to US$9.9 million if further contractual options are exercised. In March, Dori
Media also participated in the MIPTV content market in Cannes, where the value
of DMG's participation amounted to approximately US$6.28 million including
US$3.68 Million in contractual options and including deals that were initiated
at the event. Dori Media sold more than 1,560 hours of its Telenovela series and
formats to broadcasters from 11 countries at both events. Many of Dori Media's
shows contributed to this success, including "LaLola", "Sos Mi Vida" (You are
the One), the comedy "Amor Mio" (My Love), "Juanita La Soltera" (Juanita is
Single), "Collar de Esmeraldas" (The Emerald Necklace) and "El-Refugio" (The
Shelter).
In August, Dori Media Group took an important first step towards launching its
own Telenovela dedicated website, by launching its first YouTube branded
Telenovela channels. Dori Media International, a fully owned subsidiary of DMG,
updates the site daily to enable viewers to watch trailers, memorable scenes and
unseen footage of the show. The partnership has enabled DMG to reach Telenovela
fans globally and promote DMG's 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. The first channels to be
launched were devoted to 'Telenovela', 'Rebelde Way' and 'Natalia Oreiro'. In
October, a channel devoted to 'El Refugio' was added to the site, followed by
'LaLola' in December. All of these channels have been remarkably successful and
up to today the channels have attracted more than 16 million viewings in total,
placing Dori Media partner channels among the top 10 most viewed partner
channels on YouTube. Furthermore, during one day in September, a 'Sos Mi Vida'
clip became the most viewed clip on the whole of YouTube.
Strong Telenovela Programming
DMG continued to invest in new TV series in 2007, having produced and bought
rights to approximately 730 hours of TV during the year to extend its library to
more than 4,300 TV hours.
At the end of August, DMG launched its new hit Telenovela "LaLola" in Argentina.
The show received critics' praise instantaneously as they compared it to "Ugly
Betty". Within the first six months of being available on the market, "LaLola"
had been sold to 24 countries including France, Germany, Russia, Mexico, Panama,
Uruguay and Chile. In December "LaLola" won the award for "Best Daily Fiction
Comedy of the Year", along with four other awards, to become the most awarded
drama series of the night at the 2007 Clar�n Espect�culos Awards that took place
in Buenos Aires. By the time "LaLola"'s recent deal with Sony was announced;
more than 30 countries had bought the show in less than one year. Buoyed by
Sony's commitment to market a big budget version of the show in the US, many
more countries are expected to follow suit, particularly in the more developed
Western European markets.
In June, Dori Media received another award, this time for 'El Refugio' (The
Shelter'), one of Dori Media's most successful teenage TV drama series, which
was awarded the 'Accolade' Award for 'Best of Show 2007'. The 'Accolade' is a
very highly rated international award that is now entering its fifth year. The
competition is organised by high caliber professionals in the film and
television industry in the US and brings together the producers of the most
successful films, TV series and videos each year.
Financial Performance
Revenue
DMG's revenues for the 12 months ended 31 December 2007 increased by 47% from
US$20.4 million to US$30 million and reaffirm that the company is rapidly
expanding outside Israel. The results show that steps made to diversify the
group's income streams through the sale of broadcasting rights, distribution and
merchandising continue to reap results, though the ancillary businesses did
generate a smaller proportion of overall revenues for 2007 mainly due to
outstanding broadcasting and format rights sales for the period.
Income from ancillary business (merchandising & publishing, music, DVDs, CDs and
videos) increased by 23.7% from US$5.6 million in 2006 to US$6.8 million in
2007. The success of "Rebelde Way" in Mexico, Brazil, the United States and
Spain, and its subsequent merchandising and ancillary sales in North and South
America as well as the Iberian Peninsula contributed a great deal to this
success. Merchandising and ancillary businesses generated 23% of total revenues
for 2007.
DMG's Telenovela broadcasting and format rights sales were up 71% to US$18
million, compared to US$10.5 million in the same period last year. Broadcasting
and format rights sales represent 60% of total revenues in the period.
Revenues from TV channels increased by 13.8% from US$4.2 million to US$4.8
million. This is mainly due to the increase in subscribers for DMG's Indonesian
Telenovela and Baby channels. Based on the current rate of increase in
subscribers, DMG believes that its Indonesian TV Channels will breakeven in
2008.
Gross Margins
Gross margins improved to 74% in the 12 months to 31 December 2007 from 73% in
2006, with gross profit for 2007 increasing by 48% to US$22.1 million compared
with US$14.9 million for 2006.
The cost of goods sold in 2007 increased by 46% to US$7.9 million compared to
US$5.4 million in 2006, which was mainly attributable to:
-- An increase in production expenses from US$1.0 million in 2006 to
US$1.8 million in 2007, mainly due to the full consolidation of
Darset Productions in the fourth quarter of 2007 after the purchase
of the minority stake in Paran Productions
-- An increase in the amortization of rights from US$1.5 million to
US$2.4 million mainly due to the increase in the size of Dori
Media's library
-- Cost of approximately US$ 0.4 million related to the addition of
Dori Media OT's technical services
Operating Expenses
Total operating expenses amounted to US$13.8 million in 2007 compared to US$9.56
million in 2006. The total selling and marketing expenses increased from US$3.95
million in 2006 to US$6.2 million in 2007 due to an increase in merchandising
sales commissions from US$1.9 million to US$2.8 million following the increase
in merchandising income; combined salary increases for sales personnel of US$0.3
million and an increase in marketing and convention expenses from US$0.2 million
to US$1.3 million.
Administration & General expenses increased from US$5.6 million to US$7.6
million due to the increase in salaries and management fees from US$3 million to
US$4.2 million following the hiring of new personnel in all divisions of the
Group and to cover the administrative costs of purchasing of Paran Productions
and Dori Media Central Studios. Office and other expenses increased from US$0.8
million to US$1.3 million and Professional expenses including lawyers, auditors
and other consultants increased from US$1.1 million in 2006 to US$1.3 million in
2007. Travel expenses for the period ended December 31st 2007, increased from
US$0.4 million to US$0.5 million.
Operating Profit
The operating margins improved to 28% in the 12 months to 31 December 2007 from
27% in 2006, following an increase in operating profit by 54% to US$8.35 million
in 2007 compared to US$5.42 million in 2006.
Financial Expenses
Financial expenses decreased by 33% to US$0.22 million in 2007 compared to
US$0.33 million in 2006 due to the increase in cash inflow reducing the need for
credit lines.
Profit Before Tax
Pre-tax profit margins improved to 27% in the 12 months to 31 December 2007 from
25% in 2006. Profit before tax increase by 60% from US$5.09 million in 2006 to
US$8.15 million in 2007.
Tax Expenses
Tax expenses in 2007 are at the effective rate of 19%.
Net Income
The net income for the twelve months to 31 December 2007 was US$6.57 million, a
60% increase from the US$4.14 million recorded in 2006.
Cash Flow
Dori Media's cash flow continues to be positive, facilitating strong cash
generation and the financing of new productions and ventures. Operating cash
inflow increased from US$3.74 million in 2006 to US$4.15 million in 2007.
Dori Media raised a net total of US$10.25 million in the year following placings
in March and October with institutional investors.
For further information on Dori Media Group, please visit our website on
www.dorimedia.com or contact:
Dori Media Group Ltd. Shared Value Limited
Nadav Palti, CEO & President Nicolas Duperrier
Tel: +972 3 7684000 / +972 54 4236828 Investor & Media relations
info@dorimedia.com Tel. +44 (0) 20 7321 5010
dmg@sharedvalue.net
Daniel Stewart & Company
Oliver Rigby
Tel. +44 (0) 20 7776 6550
Dori Media Group is an international media group active in the production,
distribution and broadcasting of Telenovela. The Group owns and sells
high-loyalty TV content and branded merchandise attracting a wide variety of
audiences in over 50 countries. Dori Media Group owns and operates the 'Viva'
and 'Viva Platina' Telenovela dedicated TV channels in Israel,'Televiva Vision
2' Telenovela dedicated TV channel and 'Baby TV Vision 3' a toddlers TV channel
in Indonesia. Dori Media Group's production company in Israel is 'Darset
Productions Ltd'. Dori Media Group is controlled by Mapal Communications Ltd,
one of Israel's largest communications company. Dori Media Group is publicly
traded on the AIM Market of the London Stock Exchange. The Company's ticker
symbol is 'DMG'.
***
CONSOLIDATED STATEMENTS OF INCOME
--------------------------------------------------------------------------------------------
Year ended 31 December
------------------------------------------
2005 2006 2007
------------ ------------ ----------------
US$ '000*) US$ '000*) US$ '000*)
------------ ------------ ----------------
Revenues 12,078 20,404 30,023
Cost of revenues 4,803 5,423 7,907
------------ ------------ ----------------
Gross profit 7,275 14,981 22,116
------------ ------------ ----------------
Selling and marketing expenses 1,821 3,946 6,154
General and administrative expenses 3,494 5,611 7,616
------------ ------------ ----------------
Total operating expenses 5,315 9,557 13,770
----------------------------------------------- ------------ ------------ ----------------
Operating profit 1,960 5,424 8,346
Financial expenses, net 229 334 223
Other expenses (income), net 51 3 (29)
------------ ------------ ----------------
Profit before tax 1,680 5,087 8,152
Taxes on income 52 945 1,529
------------ ------------ ----------------
Profit for the year 1,628 4,142 6,623
============ ============ ================
Attributable to:
Equity holders of the parent 1,628 4,112 6,573
Minority interest - 30 50
------------ ------------ ----------------
1,628 4,142 6,623
============ ============ ================
Basic earnings per share 0.09 0.21 0.32
============ ============ ================
Diluted earnings per share 0.09 0.21 0.31
============ ============ ================
*) Except per share amounts.
The accompanying notes are an integral part of the consolidated financial
statements.
CONSOLIDATED BALANCE SHEETS
---------------------------------------------------------------------------------------
As of 31 December
-----------------------------------------
2005 2006 2007
------------ ------------ -------------
US$ '000 US$ '000 US$ '000
------------ ------------ -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 2,085 621 2,307
Trade receivables 5,238 9,065 15,494
Other accounts receivable 376 1,097 3,409
Broadcasting rights 489 1,178 1,729
Inventory of TV series rights for sale 67 45 -
------------ ------------ -------------
8,255 12,006 22,939
------------ ------------ -------------
NON-CURRENT ASSETS:
Investments in rights of TV series 9,311 15,262 20,255
Intangible assets, net 3,194 3,808 8,977
Property and equipment, net 968 1,777 5,762
Other long-term assets - - 1,020
Deferred tax assets 1,595 1,530 1,467
------------ ------------ -------------
15,068 22,377 37,481
------------ ------------ -------------
Total assets 23,323 34,383 60,420
-------------------------------------------- ============ ============ =============
The accompanying notes are an integral part of the consolidated financial
statements.
CONSOLIDATED BALANCE SHEETS
---------------------------------------------------------------------------------------
As of 31 December
-----------------------------------------
2005 2006 2007
------------ ------------ -------------
US$ '000 US$ '000 US$ '000
------------ ------------ -------------
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Credit from banks and current maturities
of long-term loans 3,559 5,217 4,631
Trade payables 1,719 4,084 5,612
Current tax liability 386 424 1,023
Other current liabilities 969 1,768 6,420
------------ ------------ -------------
6,633 11,493 17,686
------------ ------------ -------------
LONG-TERM LIABILITIES:
Bank loans - 62 301
Other long-term liabilities 1,270 3,083 3,366
Deferred tax liabilities - - 1,061
------------ ------------ -------------
1,270 3,145 4,728
------------ ------------ -------------
EQUITY:
Equity attributable to equity holders of
the parent:
Issued capital 448 448 535
Share premium 11,257 11,329 21,927
Foreign currency translation reserve (249) (138) 360
Asset revaluation surplus 240 240 695
Retained earnings 3,724 7,836 14,409
------------ ------------ -------------
15,420 19,715 37,926
Minority interest - 30 80
------------ ------------ -------------
Total equity 15,420 19,745 38,006
-------------------------------------------- ------------ ------------ -------------
Total liabilities and equity 23,323 34,383 60,420
-------------------------------------------- ============ ============ =============
The accompanying notes are an integral part of the consolidated financial
statements.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
------------------------------------------------------------------------------------------------------------------------
Attributable to equity holders of the parent
-----------------------------------------------------------------
Foreign
Receipts Total
currency Asset recognized
on Minority Total income and
Issued Share account translation revaluation Retained expenses
---------------
of interest equity Parent Minority
capital premium shares reserve surplus earnings Total
------- ------- -------- ----------- ----------- -------- ------- -------- ------- ------ --------
US$ US$ US$ US$ US$
'000 '000 US$ '000 US$ '000 US$ '000 US$ '000 '000 US$ '000 '000 '000 US$ '000
------- ------- -------- ----------- ----------- -------- ------- -------- ------- ------ --------
Balance as of 1
January 2005 348 3,656 200 (137) 240 2,096 6,403 419 6,822
Issuance of shares 7 193 (200) - - - - - -
Issuance of shares
in IPO 63 5,986 - - - - 6,049 - 6,049
Expenses related to
IPO - (1,450) - - - - (1,450) - (1,450)
Issuance of shares,
net of expenses 20 1,764 - - - - 1,784 - 1,784
Issuance of shares
to purchase
minority interest
in subsidiary 10 984 - - - - 994 (190) 804
Acquisitions of
shares of a
subsidiary - - - - - - - (229) (229)
Cost of share-based
payments - 124 - - - - 124 - 124
Currency
translation
differences - - - (112) - - (112) - (112) (112) -
Profit for the year - - - - - 1,628 1,628 - 1,628 1,628 -
------- ------- -------- ----------- ----------- -------- ------- -------- ------- ------ --------
Balance as of 31
December 2005 448 11,257 - (249) 240 3,724 15,420 - 15,420 1,516 -
====== ========
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
------- ------- -------- ----------- ----------- -------- ------- -------- ------- ------ --------
Balance as of 31
December 2006 448 11,329 - (138) 240 7,836 19,715 30 19,745 4,223 30
====== ========
Issuance of shares 85 10,166 - - - - 10,251 - 10,251
Exercise of options 2 82 - - - - 84 - 84
Asset revaluation
surplus, net due
to step
acquisition (see
Note 3) - - - - 455 - 455 - 455 455
Cost of share-based
payments - 350 - - - - 350 - 350
Currency
translation
differences - - - 498 - - 498 - 498 498 -
Profit for the year - - - - - 6,573 6,573 50 6,623 6,573 50
------- ------- -------- ----------- ----------- -------- ------- -------- ------- ------ --------
Balance as of 31
December 2007 535 21,927 - 360 695 14,409 37,926 80 38,006 7,526 50
======= ======= ======== =========== =========== ======== ======= ======== ======= ====== ========
*) 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
---------------------------------------------------------------------------------------
Year ended 31 December
-----------------------------------------
2005 2006 2007
------------ ------------ -------------
US$ '000 US$ '000 US$ '000
------------ ------------ -------------
Cash flows from operating activities:
--------------------------------------------
Profit for the year 1,628 4,142 6,623
Adjustments to reconcile profit to net cash
provided by (used in) operating activities (1,672) (407) (2,477)
------------ ------------ -------------
Net cash provided by (used in) operating
activities (44) 3,735 4,146
------------ ------------ -------------
Cash flows from investing activities:
--------------------------------------------
Acquisition of minority interests in
subsidiaries (1,041) - -
Additions to intangible assets (86) (201) (673)
Acquisition of newly consolidated
subsidiaries and jointly controlled entity
and businesses 73 (451) (801)
Investments in rights of TV series, net (2,628) (7,103) (7,196)
Proceeds from sale of property, equipment
and investment properties 460 11 108
Purchase of property and equipment (225) (505) (1,302)
Loans to jointly control entity and others - - (1,020)
------------ ------------ -------------
Net cash used in investing activities (3,447) (8,249) (10,884)
------------ ------------ -------------
Cash flows from financing activities:
--------------------------------------------
Receipt of loans - 290 -
Proceeds from issuance of shares and
exercise of options, net of issuance costs 6,383 6 10,335
Repayment of loans from banks and others (271) - (331)
Receipt of long-term production financing 1,100 1,598 932
Repayment of long-term production financing - (94) (1,384)
Repayment of loans from shareholder - - -
Short-term bank credit, net (1,978) 1,201 (1,204)
------------ ------------ -------------
Net cash provided by financing activities 5,234 3,001 8,348
------------ ------------ -------------
Effect of exchange rate changes on cash and
cash equivalents (22) 49 76
------------ ------------ -------------
Increase (decrease) in cash and cash
equivalents 1,721 (1,464) 1,686
Cash and cash equivalents as of the
beginning of the year 364 2,085 621
------------ ------------ -------------
Cash and cash equivalents as of the end of
the year 2,085 621 2,307
============ ============ =============
The accompanying notes are an integral part of the consolidated financial
statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
------------------------------------------------------------------------------------------------
Year ended 31 December
----------------------------------------
2005 2006 2007
------------ ------------ ------------
US$ '000 US$ '000 US$ '000
------------ ------------ ------------
(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 124 66 350
Depreciation and amortization 1,977 3,263 4,576
Deferred income taxes (530) 114 356
Gain on disposal of property and equipment - - (31)
Other 59 71 123
Changes in operating assets and liabilities:
Increase in trade receivables (2,464) (3,675) (5,294)
Increase in other accounts receivable (96) (697) (1,786)
Increase in broadcasting rights (527) (1,996) (2,130)
Decrease in inventory of TV series rights for
sale 55 27 54
Increase in trade payables 288 1,672 1,249
Increase (decrease) in other current liabilities (558) 748 56
------------ ------------ ------------
(1,672) (407) (2,477)
============ ============ ============
(b) Supplemental disclosure of cash flows:
--------------------------------------------------
Cash paid during the year for:
Interest 357 317 308
============ ============ ============
Income taxes 298 334 756
============ ============ ============
Cash received during the year for:
Interest 25 2 4
============ ============ ============
The accompanying notes are an integral part of the consolidated financial
statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------------------------------------------------------------------
Year ended 31 December
-----------------------------------------
2005 2006 2007
------------ ------------ -------------
US$ '000 US$ '000 US$ '000
------------ ------------ -------------
(c) Acquisition of newly consolidated subsidiaries and
jointly controlled entity and businesses:
--------------------------------------------------
The fair values of the assets and liabilities at
the date of acquisition were as follows:
Working capital deficiency (excluding cash) 25 - 2,819
Property and equipment (6) (360) (3,011)
Investments in rights of TV series (84) - (335)
Goodwill arising on acquisition - (240) (2,682)
Other intangible assets - - (845)
Deferred tax liabilities - - 638
Long-term liabilities 54 - 1,265
Carrying amount of investment prior to
acquisition 84 - -
------------ ------------ -------------
Total consideration 73 (600) (2,151)
Less: acquisition on credit - 149 1,350
------------ ------------ -------------
Net cash inflow (outflow) 73 (451) (801)
============ ============ =============
(d) Significant non-cash transactions:
--------------------------------------------------
Acquisition of rights in TV series on credit 587 1,216 940
============ ============ =============
Issuance of shares to purchase minority interest
in subsidiary 994 - -
============ ============ =============
Acquisition of minority interest in subsidiary on
credit 383 - -
============ ============ =============
Acquisition of assets on short-term credit - 149 -
============ ============ ============
Liability for acquisition of minority interest in
subsidiary - - 397
============ ============ ============
Liability for dividend distribution - - 723
============ ============ ============
The accompanying notes are an integral part of the consolidated financial
statements.
NOTE 1:- GENERAL
a. Company description:
The Company was incorporated on 14 February 1996 under the laws of Israel. The
Company and its subsidiaries are engaged in the rights purchase, production,
license and distribution of Telenovela TV series ("Telenovelas"), broadcasting
of Telenovela dedicated TV channels, entertainment movie and series TV channels
("TV channels") and distribution of TV series sourced from third parties.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES
a. Statement of compliance:
The consolidated financial statements of the Group have been prepared in
accordance with International Financial Reporting Standards ("IFRS").
b. Accounting policies:
The accounting policies adopted by the Group have been consistently applied for
all periods presented.
c. Changes in accounting policy and disclosures:
The accounting policies adopted are consistent with those of the previous
financial year except as follows:
The Group has adopted the following new and amended IFRS and IFRIC
interpretations during the year. Adoption of these revised standards and
interpretations did not have any effect on the financial performance or position
of the Group. They did however give rise to additional disclosures, including in
some cases, revisions to accounting policies.
IFRS 7 Financial Instruments: Disclosures
IAS 1 Amendment - Presentation of Financial Statements
d. Investments in rights of TV series:
Investments in rights in TV series are amortized using the straight-line method
over their useful economic life of 5-10 years, based on management's evaluation
of the expected pattern of consumption of the economic benefits of these rights.
NOTE 3:- SUPPLEMENTARY INFORMATION TO THE STATEMENTS OF INCOME
Year ended 31 December
------------------------------------------
2005 2006 2007
------------ ------------ --------------
US$ '000 US$ '000 US$ '000
------------ ------------ --------------
a. Revenues:
Rights in TV series *) 8,224 16,065 24,687
Broadcasting TV channels 3,854 4,217 4,800
Other - 122 536
------------ ------------ --------------
12,078 20,404 30,023
*) Includes royalty revenues from licensing ancillary rights of TV series.
b. Cost of revenues:
Rights in TV series 3,297 2,792 4,814
Broadcasting TV channels 1,506 2,577 2,750
Other - 54 343
------------ ------------ --------------
4,803 5,423 7,907
============ ============ ==============
*) Included in cost of revenues:
Amortization 1,888 3,116 4,333
============ ============ ==============
c. Selling and marketing expenses:
Advertising and marketing expenses 359 1,039 2,280
Commissions 1,462 2,907 3,874
------------ ------------ --------------
1,821 3,946 6,154
============ ============ ==============
============ ============ ==============
d. General and administrative expenses:
Salaries and related benefits 1,195 1,926 2,798
Management fees 717 1,081 1,432
Rental fees and maintenance of offices 399 570 1,052
Professional fees 705 1,146 1,347
Depreciation and amortization 84 138 243
Doubtful accounts and bad debts 50 145 22
Travel expenses 290 364 466
Others 54 241 256
------------ ------------ --------------
3,494 5,611 7,616
============ ============ ==============
NOTE 3:- SUPPLEMENTARY INFORMATION TO THE STATEMENTS OF INCOME (Cont)
Year ended 31 December
-----------------------------------------
2005 2006 2007
------------ ------------ -------------
US$ '000 US$ '000 US$ '000
------------ ------------ -------------
e. Financial expenses, net:
Bank loans and overdrafts 290 310 329
Income from deposits (80) (14) (57)
Other 19 38 (49)
------------ ------------ -------------
229 334 223
============ ============ =============
f. Other expenses (income), net:
Loss (gain) on disposal of property
and equipment 60 3 (31)
Rental income (32) - (2)
Depreciation of investment property 5 - -
Other 18 - 4
------------ ------------ -------------
51 3 (29)
============ ============ =============
NOTE 4:- BUSINESS SEGMENTS
a. General:
1. 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 are presented in accordance with IAS 14:
Year ended 31 December 2005
-----------------------------------------------
Rights Broadcasting
of TV of TV Total
series channels Adjustments consolidated
-------- ------------ ----------- -------------
US$ '000 US$ '000 US$ '000 US$ '000
-------- ------------ ----------- -------------
Revenues:
Sales to external customers 8,224 3,854 - 12,078
Inter-segment sales 328 - (328) -
-------- ------------ ----------- -------------
Total revenues 8,552 3,854 (328) 12,078
------------------------------------ ======== ============ =========== =============
Segment results 2,445 418 - 2,863
======== ============ ===========
Unallocated expenses (903)
-------------
Operating profit 1,960
Year ended 31 December 2006
--------------------------------------------------------
Rights Broadcasting
of 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
Inter-segment 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 4:- BUSINESS SEGMENTS (Cont.)
Year ended 31 December 2007
--------------------------------------------------------
Rights Broadcasting
of TV of TV Total
series channels Other Adjustments consolidated
-------- ------------ -------- ----------- -------------
US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
-------- ------------ -------- ----------- -------------
Revenues:
Sales to external
customers 24,687 4,800 536 - 30,023
Inter-segment sales 27 - 2,322 (2,349) -
-------- ------------ -------- ----------- -------------
Total revenues 24,714 4,800 2,858 (2,349) 30,023
--------------------------- ======== ============ ======== =========== =============
Segment results 9,344 782 481 (1,123) 9,484
======== ============ ======== ===========
Unallocated expenses (1,138)
-------------
Operating profit 8,346
c. Geographical segments:
The following tables present revenue, expenditure and certain asset information
regarding the Group's geographical segments for the years ended 31 December
2007, 2006 and 2005.
Central
and
South 2005
Israel Europe America Asia Total
--------- --------- --------- --------- ---------
Year ended 31 December 2005 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
--------- --------- --------- --------- ---------
Revenues:
Sales to external customers 6,471 2,539 2,980 88 12,078
Inter-segment sales - - - - -
--------- --------- --------- --------- ---------
Segment revenues 6,471 2,539 2,980 88 12,078
========= ========= ========= ========= =========
2005
Israel Switzerland Total
------------ ------------ ------------
Year ended 31 December 2005 US$ '000 US$ '000 US$ '000
------------ ------------ ------------
Other segment information:
Segment assets 7,871 13,565 21,436
============ ============
Unallocated assets 1,887
------------
Total assets 23,323
============
Capital expenditure:
Tangible fixed assets 141 84 225
============ ============ ============
Intangible fixed assets 1,657 3,431 5,088
============ ============ ============
NOTE 4:- BUSINESS SEGMENTS (Cont.)
Central
and
South 2006
Israel Europe America Asia Other Total
----------- --------- --------- --------- --------- ---------
Year ended 31
December 2006 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
----------- --------- --------- --------- --------- ---------
Revenues:
Sales to
external
customers 5,438 7,367 7,035 528 36 20,404
Inter-segment
sales - - - - - -
----------- --------- --------- --------- --------- ---------
Segment revenues 5,438 7,367 7,035 528 36 20,404
=========== ========= ========= ========= ========= =========
2006
Israel Switzerland Other Total
------------ ------------ ------------ ------------
Year ended 31 December 2006 US$ '000 US$ '000 US$ '000 US$ '000
------------ ------------ ------------ ------------
Other segment information:
Segment assets 8,036 24,074 102 32,212
============ ============ ============
Unallocated assets 2,171
------------
Total assets 34,383
============
Capital expenditure:
Tangible fixed assets 664 106 95 865
============ ============ ============ ============
Intangible fixed assets 240 7,603 - 7,843
============ ============ ============ ============
Central
and
South 2007
Israel Europe America Asia Other Total
----------- --------- --------- --------- --------- ---------
Year ended 31
December 2007 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
----------- --------- --------- --------- --------- ---------
Revenues:
Sales to external
customers 8,110 10,026 9,623 1,738 526 30,023
Inter-segment
sales - - - - - -
----------- --------- --------- --------- --------- ---------
Segment revenues 8,110 10,026 9,623 1,738 526 30,023
=========== ========= ========= ========= ========= =========
NOTE 4:- BUSINESS SEGMENTS (Cont.)
2007
Israel Switzerland Argentina Other Total
--------- ------------ ---------- --------- ----------
Year ended 31 December
2007 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
--------- ------------ ---------- --------- ----------
Other segment
information:
Segment assets 18,032 31,929 6,829 221 57,011
========= ============ ========== =========
Unallocated assets 3,409
----------
Total assets 60,420
==========
Capital expenditure:
Tangible fixed assets 842 645 2,735 - 4,222
========= ============ ========== ========= ==========
Intangible fixed assets 5,643 4,978 1,405 - 12,026
========= ============ ========== ========= ==========
NOTE 5:- BROADCASTING RIGHTS
As of 31 December
-----------------------------------------
2005 2006 2007
------------ ------------ -------------
US$ '000 US$ '000 US$ '000
------------ ------------ -------------
Opening balance as of 1 January 764 489 1,178
Additions during the year 527 1,996 2,130
Amortization during the year (759) (1,343) (1,651)
Currency translation differences (43) 36 72
------------ ------------ -------------
Balance as of 31 December 489 1,178 1,729
============ ============ =============
NOTE 6:- INVESTMENTS IN RIGHTS OF TV SERIES
Opening balance as of 1 January 7,227 9,311 15,262
Additions during the year 2,982 7,603 6,939
Additions for newly consolidated subsidiary
and jointly controlled entity 84 - 335
Currency translation differences - 14 139
Amortization during the year (982) (1,666) (2,420)
------------ ------------ ------------
Balance as of 31 December 9,311 15,262 20,255
============ ============ ============
Dori Media (LSE:DMG)
Historical Stock Chart
From Sep 2024 to Oct 2024
Dori Media (LSE:DMG)
Historical Stock Chart
From Oct 2023 to Oct 2024
