UK production group DCD Media (fka Digital Classics) has seen its turnover quadruple and profits treble following the acquisition of Box TV, Done and Dusted [Coldplay Live 2003] and NBD Television in the past year.
For the year ending June 30 2006 turnover increased to £13.3m (US$25.3m), compared with £3.1m in 2005, with gross profits of £3.1m, against £1.6m in 2005.
Chairman David Elstein said that each division was now benefiting from being part of the enlarged production and distribution entity. "We look forward to strengthening our position as the sector consolidates," he said.DCD said the largest contributor to group turnover being higher than anticipated was Box TV. The drama producer concluded Sweeney Todd and began work on BBC1 Christmas drama The Wind in the Willows (starring Matt Lucas and Bob Hoskins) during the period, as well as being commissioned by ITV1 to make the miniseries Bon Voyage, which aired in October. In each case sales were made to UK and foreign markets.
Box has also hired Adrian Bate, former head of drama at Zenith Entertainment.
Since joining the group at the end of February, music production company Done and Dusted has filmed a number of pop and rock concerts, by bands including Coldplay, Scissor Sisters and The Rolling Stones. DCD said that commissions directly for television and growth in the US were the next priorities for the group. It rose from a market capitalisation of £6.3m in November 2005 to £33.1m in June 2006
However, the group's original production unit, Iambic, suffered from changes in ITV's commissioning structure and personnel, seeing two major projects delayed until 2007. However, Iambic's Michael Jackson documentary brought in significant sales revenue, and the group expects more in 2007.
Distributor NBD Television, which absorbed Digital Classics Distribution when it acquired the company in December 2005, has begun to distribute programmes produced by the group's production divisions, such as Done and Dusted's T4 on the Beach and Box TV's The Wind in the Willows. The focus for the group next year is to increase sales to new media.
Finally, the group's own DVD label, DC DVD, released 15 titles into the UK in its first year, 10 of these also being released into the US.
Elstein indicated that further acquisitions could be on the horizon for the group. "The broader base of production and distribution both spreads risks and creates business opportunities," he said. "We expect our internal growth to attract other companies keen to join the group and we carefully evaluate such options so as to maximise shareholder value."
Source: http://www.c21media.net/news/detail.asp?area=1&article=32983
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