Dori Reports Reduced Revenues

LONDON/TEL AVIV: Reporting reduced revenues of $47 million for 2010, Dori Media Group also announced its intention to delist from the AIM London Stock Exchange.

The company said that maintaining an AIM listing results in costs that are "disproportionately high when compared to the benefits" as well as a heavy regulatory burden. Plus, Dori says it "believes that the valuation placed on it by the AIM market does not properly reflect its potential and by delisting it will be able to negotiate better terms as and when it wishes to raise further capital."

Dori is looking to be delisted on May 20. The news comes as it released its 2010 results, with revenues down from $48.7 million to $47 million, gross profit down from $15.4 million to $11.4 million and an operating loss of $3.2 million as compared with a year-ago operating profit of $1.6 million.

The year included an 18-percent gain in revenues from its TV channels to $8.2 million, while revenues from telenovela broadcasting and formats fell 7 percent to $12.2 million. “Although we have continued to benefit from increasing activity and interest in Dori Media’s programming and content, 2010 was a challenging year," said president and CEO Nadav Palti. "A large portion of income generated from a major production that was expected to be fully realized in 2010 is now expected to be realized in 2011 as a result of scheduling issues experienced by a client. However, we are confident about our prospects for 2011, trading for the first three months of 2011 has been strong and our business operations are stable and cash generative."

He added, "We are generating income from a variety of the most attractive growth markets in the world and the industry’s response to our cross-format productions so far in 2011 has been positive."