2nd Jun 2014 10:45
LONDON (Alliance News) - DCD Media PLC Monday posted a widened loss for 2013 as revenue was hit by the loss of its Bridezillas franchise, but the company expressed confidence for its future after refocusing towards its growing distribution rights division.
The independent television production and distribution company posted a pretax loss of GBP3.1 million, widened from GBP2.1 million in 2012, as revenue declined to GBP14.2 million, from GBP16.1 million.
The performance of its US production business was hit by the cancellation of its Bridezillas franchise. In September, the company was told by its partner WE: Women's Entertainment LLC that it would not be commissioning an 11th series of the reality programme.
DCD streamlined its operations during the year, cutting headcount to offset the weaker performance of the production business. The company also underwent restructuring, to shift the focus of its operations towards its rights and distribution divisions and away from its production activities.
Whilst television production remains a priority, DCD said, its major growth prospects are in the development of its rights businesses.
Within the company's production division, the company's UK business Matchlight performed well, producing programmes including 'Dangerous Drivers School', and September Films UK secured a contract with ITV PLC for 'Celebrity Squares' presented by Star Wars actor Warwick Davis.
In DCD's rights business, the company benefited from the benefit of its acquisition of 200 further hours of new programme, taking its catalogue up to 2,000 hours. The company saw success with the sale of Australian Drama 'Rake', and won new 'The Moody's' with British Sky Broadcasting PLC and 'Mr and Mrs Murder' for Channel 5.
The company said its DCD rights division had seen a good start to the year, winning several distribution deals, and is expected to show continued growth in 2014. Whilst its production businesses had seen some good contract wins, these will not generate revenue until later in the year, DCD Media said.
Despite its pipeline, the company's cash reserves remain low. As a result, it has issued a further GBP800,000 in convertible loan notes to major shareholders. As part of this issue it plans to restructure the company's share capital to divide each existing ordinary share to a new share of GBP1 each and four new deferred shares.
"With a challenging year behind us, we believe we have placed the business on a strong footing for future growth with an expectation of higher quality earnings going forward," the company said in a statement.
Shares in DCD Media were trading up 3.5% at 370.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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