23rd February 2006: Beyond International Limited (ASX: BYI), one of Australia’s leading television program production and distribution company, today announced improved financial results for the six months ending 31 December, 2005 as it continues to experience stronger performance in most of its business units particularly television production and distribution.
Operating Profit before Tax and write down of distribution rights increased 411% to $3,869,000 compared with $757,000 in the previous corresponding six months.
EBITDA before write down of distribution rights increased 193% to $6,481,000 compared with $2,214,000 in the previous corresponding six months.
Net Profit after Tax (NPAT) increased 241% to $2,002,000 compared with $580,000 in the previous corresponding period.
The 2005 results include a $1,239,000 non-recurring write down of distribution rights following a Directors impairment review of distribution rights. This write down reduced reported profits by $1,239,000 but did not impact cash flow during the period as payment for the relevant distribution rights was made in a previous period.
Earnings per share increased 243% to 3.37 cents compared with 0.98 cents in the previous corresponding six months.
Surplus Cash Flow from operations improved strongly to $1,952,000 in the six months to 31 December 2005 and corporate debt decreased by $1,388,000 to $4,776,000 in the same period.
Operations.
Group operating revenue has increased by 19% to $35,573,000 compared to the previous corresponding six-month period.
Television Production and Copyright.
Television production and copyright revenue increased by 14% to $25,436,000 resulting in earnings (before non cash expenses) of $8,267,000, an increase of $3,193,000 (63%) compared to the prior corresponding period.
The Company is continuing to expand its US production presence, with 53% of the revenue for the period coming from that territory. Australian factual television production has also increased.
The major series produced during the period include Mythbusters (Discovery USA), Beyond Tomorrow, Hot Property (Seven – Australia), and Wrecks to Riches (TLC – USA).
Distribution – Television.
Revenues have increased by 95% to $8,557,000 (previous corresponding period $4,386,000) resulting in earnings (before non cash expenses) of $1,016,000 (previous corresponding period $15,000).
Sales to European broadcasters account for 57% of the total revenue, followed by 26% to Australian clients.
Programs produced by Beyond account for 67% of the total sales (2004 54%), with 14% (2004 11%) of program sales being for programs produced by Beyond’s joint ventures.
The increased demand for Beyond produced programs has resulted in a 200% increase in the copyright income earned by the Company – as reflected in the improved performance of that division.
The international distribution division is of significant strategic importance to the effective operations of the consolidated entity.
Distribution – Film.
The feature film division experienced a difficult half with revenues declining 52% to $1,522,000 resulting in a loss (before non cash expenses) of $146,000. The divisions’ results are not expected to improve during the second half of the financial year – however the rights to five new feature films have been secured and these will be marketed over the next twelve months and improved results are expected in 2006/07.
Nomad Entertainment (50% owned).
During the period the Company acquired a 50% interest in Nomad Entertainment, this Company has the dvd rights to over 130 titles including Mythbusters.
The company traded profitably to December 31, 2005 and is projected to be profitable and cash flow positive for the period to June 30, 2006.
Nomad is a platform that enables Beyond to exploit its programs via retail distribution and is seen as a business with high growth potential.
DSP Beyond (51% owned).
This venture was formed in September 2005 in order to meet the demand in Australia and New Zealand for locally produced game shows and entertainment programs. These types of programs were not being produced through our existing production arrangements.
During the period the company produced Beauty and the Beast for Foxtel and was commissioned to produce an entertainment special for an Australian free to air network.
Proposed Dual Listing on Alternative Investment Market (AIM) of The London Stock Exchange.
Following further consultation with financial advisors and stock brokers in London and Sydney the Directors have decided not to proceed at this time with a dual listing of Beyond's shares on AIM.
To maximise the benefits of an AIM dual listing would require a simultaneous capital raising to create a UK shareholder base. The Directors are not willing to dilute existing shareholders by issuing any additional shares at current share prices. This could change if a suitable acquisition was found or if Beyond's share price improved significantly.
In the absence of these events the Directors believe the most effective application of Beyond's increasing surplus cash and profitability from its existing operations is a combination of continuing debt reduction, share buy-backs and dividends.
Outlook.
Beyond’s business and profitability is growing strongly and Directors expect this to continue for the foreseeable future. The Directors are expecting improved contributions from all the major operating divisions – particularly Beyond Films in 2006/2007. No overhead cost increases are expected during the period.
The Company will comfortably exceed the 20% profit growth forecast in the 2005 annual report, however at this time Directors believe it is pre mature to forecast full year profits for the Company.
A full copy of the Half Year Results is available for download by clicking here...
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Mikael Borglund, Managing Director
Beyond International
Tel: 02 9437 2000
Email: mikael@beyond.com.au
Simrita Virk
Shed Enterprises
Tel: 02 9247 8533
Email: svirk@shed-ent.com.au
published: Thursday, February 23, 2006 
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