29th Sep 2014 07:44
LONDON (Alliance News) - DCD Media PLC Monday said its short- to medium-term outlook is encouraging, as restructuring helped it to lower costs and narrow its loss in the half year to end-June.
The television production and distribution company posted a pretax loss of GBP823,000 in the recent half, narrowed from a loss of GBP915,000 in the same period a year before, as a decline in revenue to GBP6.0 million from GBP7.4 million was offset by a fall in administrative expenses.
The fall in revenue was primarily as a result of the television series Bridezillas being cancelled, hitting its September Films USA business, although this was partly offset by higher revenues in September Films UK from the production of Celebrity Squares for ITV PLC.
The company streamlined its UK production division, and is selling its Matchlight business, to focus on output from its London teams. As a result of the cancellation of Bridezillas, September Films saw no revenue in the half year, and was unable to secure any further opportunities, leading DCD to downsize the business.
DCD is continuing to focus on content acquisition in its rights business, which it believes will lead to sales in the second half and beyond. It is hoping to expand its rights business into "lucrative genres".
The company said it has "taken the appropriate steps" to restructure its operations, increasing focus on its international rights business to help mitigate the risks in the production market. It also adjusted its cost base, and has focused its attention on business winners, which it believes positions it for a return to profit.
"We are delighted to report that we are almost through the turnaround cycle with a return to economic and financial stability in sight," said Executive Chairman David Craven in a statement. "And while we have faced tough challenges in the production divisions, we now look forward to progressing with a leaner business."
Shares in DCD were trading up 14% at 319.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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