Dori Release 2008 Financials

TEL AVIV: While its revenues were up by 70 percent to $51 million in 2008, Dori Media Group recorded a 42-percent fall in its after-tax profit to $3.8 million.

Revenues included $18.4 million from telenovela broadcasting and format-rights sales, reflecting a 3-percent gain and accounting for 36 percent of total revenues, versus 60 percent in the year-ago period. Dori Media’s movie and entertainment channels venture with Israeli cable platform HOT delivered $23.6 million in revenues. Ancillary businesses, meanwhile, generated $1.9 million, a significant drop on last year’s $6.8 million.

"We are operating in a tough market but we remain very well positioned to cope with the challenges that lie ahead," said Nadav Palti, president and CEO. "Demand for telenovela programming remains high both in new and existing markets around the world as it presents broadcasters with very cost effective yet highly popular productions—an extremely valuable facet in the current environment."

He continued: "Despite weaker sales in the fourth quarter, 2008 was a strong year for DMG. Group revenues increased significantly to US$51 million thanks to a number of significant developments including the sale of International Emmy nominated Lalola to over 61 countries, the scaling up of our operations in Indonesia, a multi-year, multi-million agreement with Israeli cable platform HOT and news of an important strategic alliance with Televisa. We continue to diversify our income streams, our international sales account for a very high proportion of group sales, with sales in new territories in Africa and Asia showing very healthy levels of growth. We also remain committed to developing new media content."

Palti noted that the company was putting in place cost-cutting measures for this year, "including at senior management level, to ensure we protect our bottom line. The strength of our business model and our efficient operations leave us well positioned to meet ongoing challenges, however there is only limited visibility on the primary economic factors that may impact the company’s performance in the coming months."