TIDMDMG
FINAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2010
Dori Media Group ("Dori Media", "DMG", the "Company" or the
"Group"), the international media company active in the field of
television, with a focus on production, distribution, broadcasting
and merchandising of Telenovela and Drama, today announces its
final results in accordance with International Financial Reporting
Standards (IFRS) for the year ended 31 December 2010.
Full Year 2010
-- Group Revenues US$47 million (2009: US$48.7 million)
-- Gross Profit US$11.4 million (2009: US$15.4 million)
-- EBITDA US$9.3 million (2009: US$12.2 million)
-- Positive Operating Cash flow US$7.7 million (2009: US$5.6 million)
-- Operating Loss US$3.2 million (2009: Operating Profit of US$1.6
million)
-- Total Equity US$41.8 million (2009: US$46.4)
Second Half 2010
-- Group Revenues US$20.7 million (2009: US$23.4 million)
-- Gross Profit US$3.1 million (2009: US$7.2 million)
-- EBITDA US$1.8 million (2009: US$5.8 million)
Operating Highlights
-- 18% increase in revenues from TV channels (excluding revenues from
Israeli cable network 'HOT') to US$8.2 million (US$7.0
million);
-- 7% decrease in Telenovela broadcasting and format rights to US$12.2
million (US$13.1 million) following the postponement of a
major
revenue-generating production that was expected to be fully
realized
in 2010 as a result of scheduling issues and now is expected to
be
realized in 2011;
-- Sales of new Telenovela and Drama content including the sale of 'Split'
to 78 countries since its launch; sales of popular new cross
platform
24/7 reality show 'uMan' to 23 countries including 11
territories in Western Europe following its instant success in
Israel;
sale of 'Champs 12', to 31 countries in total, including
France, Spain, Portugal, Italy, Greece and Turkey and sale of
cross
platform Telenovela 'Amanda O' to 64 countries since its
launch;
-- In July 2010, Dori Media Spike (DMS) extended its agreement with 'HOT'
to operate the 'HOT' premium movie channels until 2014, preceded
by
the signing in January 2011 of a three-year extension to its
'HOT'
agreement to operate the general Entertainment Channels for
another 3
years from 1 January 2011 until 2014. The transaction included
the
sale of a new series channel to 'YES', the leading DBS
television
provider in Israel. Combined with the movie channel agreement
with
'HOT' in July, the extended agreements are expected to generate
total
revenues of between US$59 million and US$65 million over 3
years.
Recent Developments
-- In February, DMG sold "uMan" to ITV Studios America in the US
in collaboration with Indiemedia. The show was launched in
Turkey in
January 2011, in Italy it will be launched on the Italia 1
channel by
Endemol Italy in April 2011, and the show is also expected to
be
launched in Portugal during the second half of 2011.
-- The second series of "Split" has been sold to Turner Broadcasting
System Latin America Inc., a Time Warner company, for its
Boomerang
channel in Latin America and Caribbean territories. Boomerang
has the
right to broadcast the second series' 45 episodes in
territories
including Brazil, Chile, Argentina, Colombia, Mexico and
Uruguay.
-- Sales totaling to approximately US$7 million have been closed during
the first three months of 2011. In addition there is a high
visibility
on an additional US$33 million of revenues for 2011 which are
subject
to completion of rendering of certain services by the
Company.
Intended Delisting of Dori Media Group from London AIM
Market
The Company also published a separate announcement today, April
14th, explaining that the Board of Directors of the Company, in a
meeting held by it (the "Board Meeting") has proposed the delisting
of the Company's Ordinary Shares from admission to trading on AIM.
The delisting is subject to shareholder approval at the
Extraordinary General Meeting ("EGM"), which is expected to be
convened on May 12, 2011. The Circular covering the EGM and related
materials will be delivered to all shareholders of the Company in
due course and a further announcement will be made once these have
been posted.
In making this decision, the Board of Directors has focused on
the following key factors:
-- in light of the limited trading in the Ordinary Shares, the tangible
costs associated with maintaining the AIM quotation are
disproportionately high when compared to the benefits and the
Board of
Directors considers that these funds could be better utilised
in
running the business;
-- the management time and the legal and regulatory burden associated
with maintaining the Company's admission to trading on AIM
is
disproportionate to the benefits to the Company;
-- the Company, like many other quoted AIM companies of its size, has a
tightly held register of shareholders and suffers from a lack
of
liquidity for its Ordinary Shares. In practical terms, this
results in
a small free float and low trading volumes, which further
reduces the
demand for the Ordinary Shares;
-- the Company 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;
Consequently, the Board of Directors believes that a delisting
is in the best interests of the shareholders generally (including,
for these purposes, depositary interest holders) to seek
Cancellation at the earliest opportunity.
On 13 April 2011, the Company received a letter from a member of
the Company's controlling shareholders' group, who confirmed its
intent in making a tender offer, by itself or together with other
shareholders of the Company, for up to 2.7 million Ordinary Shares,
if the Company's shareholders approve the Cancellation at the EGM.
The price of the tender offer, if made, would be 50 pence per
Ordinary Share (the "Proposed Tender Offer Price"). The Proposed
Tender Offer Price reflects a premium of approximately 13.6 per
cent. to the closing middle market price of Ordinary Share on AIM
on 13 April 2011, (being the date the Company received such a
letter) and a premium of approximately 5 per cent. to the average
closing middle market price of an Ordinary Share on AIM during the
three month period ending on 13 April 2011. At this stage, there is
no certainty that such a tender offer will be made.
On 13 April 2011, the Company received a further indication from
certain members of its board of directors and other authorised
participants of the Board Meeting, on their behalf and on behalf of
their respective affiliates, and who hold in the aggregate
approximately 75 per cent. of the Company's existing issued share
capital, of their intention not to sell their Ordinary Shares as
part of the aforesaid tender offer (if made).
Chief Executive Officer's comments
Nadav Palti, President and CEO of Dori Media Group, commented:
"Although we have continued to benefit from increasing activity and
interest in Dori Media's programming and content, 2010 was a
challenging year. 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.
"Our high quality, award winning productions which are also
available across a wide variety of new media platforms continue to
be in demand around the world. We recently sold "uMan" to ITV
Studios America, Endemol Italy and the show was also launched in
Turkey, as the flagship daily prime-time anchor program of new
channel, TRT Okul. Our lucrative long-term partnerships also
continued to flourish - we recently signed a three-year extension
to our agreement with leading Israeli cable platform "HOT" to
operate their Movie and general Entertainment Channels, generating
a combined revenue between US$59 million and US$65 million over 3
years.
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"
Chief Executive Officer's Review
Operating Update
Excluding the impact of the 'HOT' and 'YES' movie and general
entertainment channels agreement on local revenues in Israel,
international sales accounted for 54.8% of total sales in 2010,
compared to the 48.1% contribution towards total revenues recorded
during 2009. TV channel revenues, excluding 'HOT' increased by 18%
to US$8.2 million for the period. The breakdown of international
sales for the period is as follows:
-- 30.9% (26.8% in 2009) generated in Europe, representing 17% of global
sales excluding 'HOT' movie and general entertainment
channels;
-- 19.8% (26.6% in 2009) generated in Central and South America,
representing 10.8% of global sales excluding 'HOT' movie and
general
entertainment channels;
-- 49.3% generated in other territories mainly Asia (46.6% in 2009 -
mainly from the Far East) representing 27% of global sales
excluding
'HOT' movie and general entertainment channels;
A growing library of quality programming
Dori Media continued to invest in new TV series during 2010 and
the Company now has a library of approximately 5,250 TV hours, more
than 5,000 3 minute video clips, 120 - 9 minute webisodes and
around 556 1-5 minute cellular episodes of Telenovelas and daily
series
'Split', a teenage show that revolves around the lives of humans
and vampires, has now been sold to 78 countries. 'Split' was
originally produced for Israeli cable platform HOT's VOD (Video on
Demand) service. After only 3 months on-air, 'Split' episodes on
HOT VOD generated a total of approximately 7,000,000 viewings.
Approximately 90% of viewers watched all available episodes,
reaching a record loyalty level. Furthermore, over 30% of
households with VOD services watched 'Split'. Following 'Split's'
success on HOT VOD, the first season of 45 episodes (30 minutes
each) has been successfully aired on Israel's leading channel for
children and teenage audiences, 'The Children Channel'. Following
the show's huge success on HOT VOD and on-line, both HOT and "The
Children Channel" have decided to invest in producing a second
season of 'Split', which also contains 45 episodes, each 30 minutes
in length. The 2nd season, which has been produced by Dori Media
Darset, was sold to Turner Broadcasting System Latin America Inc.
at the end of 2010, and will be broadcast on its Boomerang channel
in Latin America and the Caribbean territories at the end of 2010.
Under the terms of the deal, Boomerang will have the right to
broadcast the episodes to territories which include Brazil, Chile,
Argentina, Colombia, Mexico and Uruguay.
'Split' has also been sold to the Philippines, the first country
in Asia to acquire the daily drama. The move into Asia comes as
'Split' continues its success in Europe, having also been sold to
Russia and Spain. The original TV series will be aired on
free-to-air channels in all territories.
Following the successful Israeli launch of Cellcom and Dori
Media's new cross platform 24/7 reality show 'uMan' in July 2009,
the show has now been sold to a total of 23 countries including
Denmark, France, Italy, Germany, Greece, Norway, Spain, Sweden, and
The Netherlands. 'uMan' is a reality show where every move of 8
contestants is filmed 24 hours a day for 21 days and all decisions
regarding the lives of the contestants are voted for by viewers.
'uMan' became an instant success in Israel, where more than 7
million viewer votes were recorded in 21 days. During this period,
out of Israel's total population of 7 million people (600,000 of
whom are teenagers), the on-line show had 700,000 unique users.
"uMan" was recently sold to ITV Studios America and Endemol Italy
and the show was also launched in Turkey, as the flagship daily
prime-time anchor program of new channel, TRT Okul. 'uMan' was also
sold to 'Mega' in 2010, the number one free-to-air TV channel in
Greece and the channel plans to extend the format's length to
follow the show's participants for a longer period of time with
viewers also able to catch up on the day's action on a daily TV
show dedicated to 'uMan' on the 'Mega' channel.
"Ciega a Citas" (Date Blind), a co-production by Dori Media
Contenidos and Rosstoc, won a coveted "Series and Soap Operas"
"Rose d'Or" award in 2010. The "Rose d'Or" Festival, is the only
global awards ceremony for television entertainment and is
consequently regarded by the industry as its most prestigious award
ceremony. The show has been sold to 33 countries since its launch
in 2009. "Ciega a Citas" is a telenovela about a woman's quest to
find love before her sister's imminent wedding, and the show also
recently won the Argentores Award for best program in 2010 in
Argentina. The show went on to be nominated for an International
Emmy in the Telenovela category in 2010.
'Champs 12', a Football drama, which was sold to Caracol
Television S.A. in Colombia even before its debut on Canal America
in Argentina, has now been sold to 31 countries in total, including
France, Spain, Portugal, Italy, Greece and Turkey. Exhibitions of
'Champs 12' in Italy already began to show new revenues from
Ancillary business.
Dori Media's hit comedy show 'Lalola', continues to perform well
and has now been sold to more than 120 countries since its debut
and is also locally produced in India, Turkey, Greece, Belgium,
Spain, Portugal, Philippines, Chile, Vietnam, and Russia.
Strong long-term partnerships
Dori Media is very proud to have long-term partnerships with
many leading global media companies. A summary of the main
partnership agreements is provided below.
In June 2009, Dori Media Darset reached an agreement with
Cellcom, the leading cellular operator in Israel, to produce 'uMan'
(named locally 'Megudalim' in Israel) a unique and innovative 24/7
cross-platform control game for mobile phones, internet and TV.
'uMan' has become an instant success in Israel reflecting the
potential of this innovative partnership.
Cellcom, Logia Mobile and Dori New Media have together presented
"First Love" - an original interactive project of 150 short movies,
documenting true love stories from young people between ages 16 to
20. Negotiations are underway with several international
broadcasters interested in purchasing the "First Love" format.
In July 2010, Dori Media Spike (DMS) extended its agreement with
Israeli cable platform 'HOT' to operate the 'HOT' premium movie
channels for another 3 years from 1st January 2011 until 2014,
generating revenues of between US$45 million and US$48 million over
3 years for DMG. DMS's original agreement with 'HOT' was initiated
in 2007. 'HOT' boasts subscriptions with the majority of Israeli
households and under the agreement DMS retains the rights to
produce and operate the existing 'HOT' premium movie channels and
services. In January 2011, DMS signed a three-year extension to its
general Entertainment Channels agreement with "HOT" for another 3
years from 1 January 2011 until 2014. The transaction included the
sale of a new series channel to "YES", the leading DBS television
provider in Israel. Combined with the movie channel agreement with
'HOT' in July, the extended agreements are expected to generate
total revenues of between US$59 million and US$65 million over 3
years.
DMG is also 3 years into a 5-year output deal with Televisa to
sell various titles to Televisa. Televisa is the largest media
company in the Spanish world and a major player in the
international entertainment business. The deal was signed for a
consideration of approximately US$7.2 million with contractual
options of US$2.3 million expected to increase the value of the
deal to approximately US$9.5 million.
Financial Performance
Revenue
Dori Media recorded sales of US$47 million for the twelve months
ended 31 December 2010, down 3% from US$48.7 million for the
corresponding period of 2009.
The Group's results were supported by the strong revenues
generated by DMG's TV channel businesses, which reported US$33.8
million of sales for the full year 2010, compared to US$34.4
million in 2009. The slight year on year decline reflected
additional non-recurring revenues, which were generated as a result
of a three year agreement with "HOT". This was offset by the strong
performance of the TV Channels operated by Dori Media International
("DMI"). The channels (excluding revenue from Israeli cable network
'HOT') recorded an 18% year on year increase in sales, from US$7
million in 2009, to US$8.2 million for the full year 2010.
Telenovela broadcasting and format rights sales for the full
year 2010 were down to US$12.2 million, compared to US$13.1 million
in 2009, with revenues from broadcasting rights down to US$10.6
million from US$11.9 million in 2009. The decline is primarily
related to scheduling issues experienced by the client, which
resulted in delayed revenues and which are now planned to be fully
realized during 2011. Broadcasting and format rights sales
represented 26% of total revenues for the period, and the
proportion remained stable compared to 2009.
Revenues from the ancillary business (merchandising &
publishing, music, DVDs, CDs, videos and Live shows) declined year
on year, from US$0.7 million for the full year 2009 to US$0.3
million in 2010. The decline was in line with expectations, as some
major localizations of Dori Media content no longer generate
royalties after a decrease in the number of exhibition appearances
for certain shows. However, exhibitions of new formats have now
commenced and include exhibitions and Licensing of shows including
'Champs 12' in Europe and 'Split' in both Europe and Latin
America.
Other income (including TV and internet advertising) contributed
1% of total full year sales, and amounted to US$0.5 million for the
full year 2010, compared to US$ 0.2 million reported in 2009. This
is the result of an increase in Dori Media Ot' client base driven
by its high-quality subtitling, dubbing and format conversions.
Gross Margin
The Company recorded a gross profit of US$11.4 million for the
full year, which represented a decline from US$15.4 million in
2009. The change reflected an increase in amortization, expenses
relating to DMG's Library and an additional impairment in the
amount of US$1.16million.
Gross margin for the current reporting period was 24% decreasing
from 32% in 2009 as anticipated as a result of lower revenues from
broadcasting and format rights, increase in amortization and delays
of income generation.
The cost of goods sold for the twelve months of 2010 increased
to US$35.6 million compared to US$33.3 million in 2009. This
increase can be mainly attributed to amortization charges related
to DMG's Library, as well as charges related to the set-up and
depreciation of broadcasting rights.
Operating Expenses
Total operating expenses amounted to US$14.7 million for the
full year, up from US$13.7 million in 2009. Total sales and
marketing expenses were lower than expected, and declined by 7%
from US$3.3 million in 2009 to US$3.1 million for the full year as
a result of cost savings and efficiency during conventions,
significantly lower merchandising commissions and decreased
advertising and marketing expenses.
Whilst the overall sales and marketing costs decreased, sales
commissions rose significantly year on year, from US$0.4 million in
2009 to US$1 million for the full year, as a result of initiatives
with local partners.
Sales personnel salaries were reduced by 29% year on year, from
US$0.8 million in 2009 to US$0.6 million in 2010, while PR expenses
were reduced by 38% year-on-year to US$0.1 million.
Administration & General expenses were up by 11% year on
year from US$10.4 million in 2009, to US$11.6 million in 2010. The
main increase reflected provisions for bad debts of approximately
US$1.5 million. Salaries and management fees were down from US$6
million in 2009, to US$5.8 million in 2010 - 2% decrease. The
actual reduction in salaries and management fees of 7% was set off
to 2% as a result of the fluctuations in the currency exchange rate
between the US$ and the NIS of US$0.1 million, and US$0.2million of
one-off options and equity provisions in Novebox. When excluding
the year on year effects of the bad debts provision, the currency
exchange rate movements and the impact of one-off options and
equity provisions in Novebox, Administration & General expenses
were down year on year from US$ 10.4 million in 2009, to US$ 9.8
million for the full year 2010.
Professional expenses, including legal fees, auditors
remuneration and payments for other consultancy services increased
by 12% from US$1.3 million in 2009 to US$1.5 million in 2010.
EBITDA
The Company recorded an EBITDA profit of US$9.3 million for the
full year, compared to US$12.2 million in 2009. The decrease in
EBITDA is mainly due to the postponement of a major
revenue-generating production that was expected to be fully
realized in 2010 as a result of scheduling issues. The EBITDA
margin for the full year was 20%.
Income Tax
The Company reported total tax expenses of US$0.5 million for
the full year. At the Group level, Dori Media recorded a net loss
for the full year of 2010 but the Company is still subject to
income tax charges as tax charges for each of DMG's subsidiaries
are calculated individually. Consequently, a loss result by one
subsidiary cannot be offset by a profit from another for tax
purposes. The Company is making efforts to address these tax issues
and is expecting to have this issue resolved in the near
future.
Cash Flow
Despite the predicted slowdown in activity during 2010, Dori
Media's cash flows remained positive, and facilitating strong cash
generation and the financing of new productions and ventures.
Operating cash inflow amounted to US$7.7 million for the year,
compared to US$5.6 million in 2009. DMG's cash flow, combined with
the bank facilities available to the Company, enables it to
continue to invest in new productions, often with other partners,
and therefore to grow its new content inventory.
Report and Accounts
The Company's Financial Report and Accounts are available on the
Company's website www.dorimedia.com.
Outlook
Early indications support the Management team's belief that 2011
will prove to be a stronger year for Dori Media. Trading for the
first three months of the year has been strong and the Company is
witnessing positive response to many of its productions. The
Company's business operations remain stable and cash generative and
Dori Media continues to have a strong balance sheet. Despite this,
the Board considers the potential delisting to be in the best
interests of the Company's and all of its shareholders.
***
For further information on Dori Media Group, please visit our
website on www.dorimedia.com or contact:
Dori Media Group Ltd. Shared Value Limited
Nadav Palti, CEO & President Mark Walter
Tel: +972 3 7684000 Investor & Media relations
info@dorimedia.com Tel. +44 (0) 20 7321 5010
dmg@sharedvalue.net
Daniel Stewart & Company
Paul Shackleton/Oliver Rigby
Tel. +44 (0) 20 7776 6550
Dori Media Group is an international group of media companies,
located in Israel, Switzerland, Argentina and the US. The group
produces and distributes TV and New Media content, broadcasts
various TV channels and operates video-content internet sites. The
group owns approximately 5,250 TV hours, more than 5,000 clips of 3
minutes on average, 120 - 9 minute webisodes and around 556 1-5
minute cellular episodes of Telenovelas and daily series that it
sells to a wide variety of audiences in more than 80 countries. It
owns and operates two telenovela channels, Viva and Viva Platinum
broadcasted on all Israeli multi-channel platforms and via the
co-branded internet site offering telenovelas to Israeli surfers
through Walla.com. Dori Media Paran and Dori Media Darset produce
top-end series as well as daily dramas for the Israeli and
international markets. Dori New Media develops and produces formats
specially tailored for the internet and cellular platforms, and
realizes new opportunities enabled by the new technologies. Dori
Media Spike packages, produces and operates the main movie channels
on the Israeli cable TV platform and general entertainment channels
on all Israeli TV multi-channel platforms. In Indonesia and
Malaysia, the company operates the Televiva Vision 2 channel that
is devoted to telenovelas and Baby TV Vision 3 for toddlers, in
addition to the Ginx gamers' channel. Ginx is localized and
broadcasted to Turkey as well. Novebox operates an ad-based VOD and
SVOD commercial internet site targeted at the Hispanic and Latin
American audience offering a variety of shows and movies. The group
is traded on the London Stock Exchange where its symbol is DMG. For
more information on Dori Media, visit our corporate website at
http://www.dorimedia.com/.
***
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Year ended 31 December
2008 2009 2010
Note US$ '000*) US$ '000*) US$ '000*)
Revenues 17a 50,427 48,716 47,023
Cost of revenues 17b 27,868 33,348 35,601
Gross profit 22,559 15,368 11,422
Selling and marketing expenses 17c 4,826 3,323 3,082
General and administrative 17d 11,163 10,401 11,580
expenses
Totaloperating expenses 15,989 13,724 14,662
Operating profit (loss) 6,570 1,644 (3,240)
Financial expenses, net 17e 822 638 817
Other income, net (7) - -
Profit (loss) before 5,755 1,006 (4,057)
taxes on income
Taxes on income 14c 2,365 1,669 532
Profit (loss) for the year 3,390 (663) (4,589)
from continuing operations
Profit (loss) for the year from 18 449 (784) -
discontinued operations
Profit (loss) for the year 3,839 (1,447) (4,589)
Other comprehensive
income (loss):
Currency translation (87) (466) 146
adjustments
of foreign operations
Totalcomprehensive 3,752 (1,913) (4,443)
income (loss)
*) Except per share amounts.
The accompanying notes are an integral part of the consolidated
financial statements.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Year ended 31 December
2008 2009 2010
Note US$ '000*) US$ '000*) US$ '000*)
Profit (loss) attributable to:
Equity holders of the parent 3,203 (2,593) (5,421)
Non-controlling interests 636 1,146 832
3,839 (1,447) (4,589)
Total comprehensive income
(loss) attributable to:
Equity holders of the parent 3,116 (3,173) (4,993)
Non-controlling interests 636 1,260 550
3,752 (1,913) (4,443)
Basic and diluted earnings 19
(loss) per share:
From continuing operations 0.12 (0.07) (0.17)
attributable
to equity holders of the parent
From discontinued operations 0.02 (0.03) -
attributable
to equity holders of the parent
Profit (loss) attributable to 0.14 (0.10) (0.17)
equity holders of the parent
*) Except per share amounts.
The accompanying notes are an integral part of the consolidated
financial statements.
CONSOLIDATED BALANCE SHEETS
As of 31 December
2008 2009 2010
Note US$ '000 US$ '000 US$ '000
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 2,382 635 1,837
Trade receivables 3 15,919 16,670 16,989
Other accounts receivable 4 3,394 2,826 2,658
Broadcasting rights 5 4,413 6,725 6,853
26,108 26,856 28,337
Assets classified as held for sale 18 - 2,630 -
26,108 29,486 28,337
NON-CURRENT ASSETS:
Investments in rights 6 28,877 35,079 34,868
of TV series, net
Intangible assets, net 7 9,718 8,584 8,349
Property and equipment, net 8 5,793 2,857 2,492
Other long-term assets 1,081 128 128
Deferred tax assets 14d 2,214 2,908 4,241
47,683 49,556 50,078
Totalassets 73,791 79,042 78,415
The accompanying notes are an integral part of the consolidated
financial statements.
CONSOLIDATED BALANCE SHEETS
As of 31 December
2008 2009 2010
Note US$ '000 US$ '000 US$ '000
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Credit from banks and 9 14,789 10,084 11,606
current maturities
of long-term loans
Trade payables 10 5,540 4,938 6,514
Current tax liability 441 385 292
Other current liabilities 11 5,856 3,758 4,992
26,626 19,165 23,404
Liabilities associated with 18 - 1,780 -
assets held for sale
26,626 20,945 23,404
LONG-TERM LIABILITIES:
Bank loans 12 99 5,348 5,635
Other long-term liabilities 13 1,773 2,297 2,544
Deferred tax liabilities 14d 2,581 4,053 5,073
4,453 11,698 13,252
EQUITY: 16
Equity attributable to equity
holders of the parent:
Issued capital 539 648 648
Share premium 22,877 28,094 28,463
Warrants - 427 427
Foreign currency translation 273 (307) 121
reserve
Asset revaluation surplus 695 695 695
Retained earnings 17,612 15,019 9,598
41,996 44,576 39,952
Non-controlling interests 716 1,823 1,807
Totalequity 42,712 46,399 41,759
Totalliabilities and equity 73,791 79,042 78,415
The accompanying notes are an integral part of the consolidated
financial statements.
13 April 2011
Date of approval Tamar Mozes-Borovitz Nadav Palti Moshe Pinto
of the
financial Chairman of the Board Director and Chief Financial
statements of Directors Chief Executive Officer
Officer
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to equity holders of the parent
Foreign
currency Asset Non-
Issued Share translation revaluation Retained controlling Total
capital premium Warrants reserve Surplus earnings Total interests equity
US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
Balance 535 21,927 - 360 695 14,409 37,926 80 38,006
as
of 1
January
2008
Total - - - (87) - 3,203 3,116 636 3,752
comprehensive
income
Exercise 4 126 - - - - 130 - 130
of
options
Cost - 796 - - - - 796 - 796
of
share-based
payments
Tax - 28 - - - - 28 - 28
effect
of
share-based
payments
Balance 539 22,877 - 273 695 17,612 41,996 716 42,712
as
of 31
December
2008
Total - - - (580) - (2,593) (3,173) 1,260 (1,913)
comprehensive
loss
Dividend - - - - - - - (153) (153)
paid
to
minority
shareholders
Issuance 109 4,860 427 - - - 5,396 - 5,396
of
shares
and
warrants
Cost - 357 - - - - 357 - 357
of
share-based
payments
Balance 648 28,094 427 (307) 695 15,019 44,576 1,823 46,399
as
of 31
December
2009
Total - - - 428 - (5,421) (4,993) 550 (4,443)
comprehensive
loss
Dividend - - - - - - - (566) (566)
paid
to
minority
shareholders
Embedded - 90 - - - - 90 - 90
option
in
convertible
loan
from
related
parties
Cost - 279 - - - - 279 - 279
of
share-based
payments
Balance 648 28,463 427 121 695 9,598 39,952 1,807 41,759
as
of 31
December
2010
The accompanying notes are an integral part of the consolidated
financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended 31 December
2008 2009 2010
Note US$ '000 US$ '000 US$ '000
Cash flows from operating
activities:
Profit (loss) for the year 3,839 (1,447) (4,589)
Adjustments to reconcile (a) 4,410 7,026 12,329
profit (loss) to net
cash provided by operating
activities
Net cash provided by 8,249 5,579 7,740
operating activities
Cash flows from investing
activities:
Proceeds from sale of jointly (c) - - 842
controlled entity
Additions to intangible assets (1,985) (28) (21)
Additional consideration for (1,350) - -
acquisition of subsidiaries
and jointly controlled entity
Investments in rights of TV series (13,269) (13,468) (8,550)
Proceeds from sale of property 19 - -
and equipment
Purchase of property and equipment (923) (324) (267)
Repayment of loans to jointly - 956 -
controlled entity and other
Net cash used in investing (17,508) (12,864) (7,996)
activities
Cash flows from financing
activities:
Dividend paid to minority - (153) (566)
shareholders
Receipt of long-term loans - 4,977 -
Receipt of long-term loans - - 1,007
and convertible
loan from related parties
Proceeds from issuance 130 5,396 -
of shares and
warrants, net of issuance costs
Repayment of loans from (552) - -
banks and others
Repayment of long-term (1,075) (136) (9)
production financing
Short-term bank credit, net 10,809 (4,560) 1,005
Net cash provided by 9,312 5,524 1,437
financing activities
Effect of exchange rate changes 22 22 13
on cash and cash equivalents
Increase (decrease) in cash 75 (1,739) 1,194
and cash equivalents
Cash and cash equivalents as 2,307 2,382 643
of the beginning of the year
Cash and cash equivalents as 2,382 643 1,837
of the end of the year
The accompanying notes are an integral part of the consolidated
financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended 31 December
2008 2009 2010
US$ '000 US$ '000 US$ '000
(a) Adjustments to reconcile profit
(loss) to net cash
provided by (used in)
operating activities:
Income and expenses not
involving cash flows:
Cost of share-based payments 796 357 279
Depreciation and amortization 22,692 25,542 27,847
Increase in liability for 411 59 -
production financing
Deferred income taxes 503 1,126 (410)
Gain on disposal of property (7) - -
and equipment
Other (44) - 62
Severance pay, net (136) 97 -
Changes in operating assets
and liabilities:
Increase in trade receivables (374) (1,151) (10)
Decrease in other accounts receivable 233 393 217
Increase in broadcasting rights (18,217) (18,805) (17,331)
Increase (decrease) in trade payables (1,591) 373 1,586
Increase (decrease) in other 144 (965) 89
current liabilities
4,410 7,026 12,329
(b) Supplemental disclosure of cash flows:
Cash paid during the year for:
Interest 684 548 745
Income taxes 1,316 862 511
The accompanying notes are an integral part of the consolidated
financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended 31 December
2008 2009 2010
US$ '000 US$ '000 US$ '000
(c) Proceeds from sale of jointly
controlled entity:
Working capital deficiency - - (1,118)
(excluding cash)
Property and equipment - - 2,392
Deferred tax liabilities - - (361)
Long-term liabilities - - (71)
- - 842
(d) Significant non-cash transactions:
Acquisition of rights in 721 547 (154)
TV series on credit
Acquisition of broadcasting rights 1,624 512 242
The accompanying notes are an integral part of the consolidated
financial statements.
SUMMARIZED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**The notes to the consolidated financial statements are
summarized - but are available in full in the full annual accounts
on Dori Media's website at www.dorimedia.com.**
NOTE 1:-GENERAL
a. Company description:
The Company was incorporated on 14 February 1996 under the laws of Israel. The Company and its subsidiaries are engaged in the rights for purchase, production, license and distribution of content focusing on Drama and Telenovela TV series ("Telenovelas"), distribution of TV series sourced from third parties, broadcasting of dedicated niche TV channels for entertainment content, Drama and Telenovela, entertainment movie and series TV channels ("TV channels") and operating a video on demand website. In December 2009, the Company signed an agreement to sell its investment in Dori Media Central Studios S.A (see Note 18), and in 2010 it is no longer a part of the Compa ny.
b. Definitions:
In these financial statements:
The Company - Dori Media Group Ltd. ("DMG")
The Group - Dori Media Group Ltd. and its investees.
Subsidiaries - Entities that controlled by the Company
(as defined in IAS 27 (2008))
and whose accounts are consolidated
with those of the company.
Jointly controlled entity - entity owned by various parties that
have a contractual arrangement
that establishes joint control over
the activities of the entity
and whose accounts are consolidated
with those of the company using
the proportionate consolidation
method/ the accounting method.
Investee - Subsidiary or jointly controlled entity.
Related parties - As defined in IAS 24.
NOTE 2:-SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation of the financial statements:
The consolidated financial statements of the
Group have been prepared in accordance with
International Financial Reporting Standards
("IFRS"). These standards comprise:
1. International Financial Reporting Standards (IFRS).
2. International Accounting Standards (IAS).
3. Interpretations issued by the IFRIC and by the SIC.
Further details of the Significant Accounting Policies are
available in the full annual accounts on Dori Media's website at
www.dorimedia.com.
NOTE 14:-TAXES ON INCOME
a. Tax laws applicable to the Company:
In February 2008, the "Knesset" (Israeli
parliament) passed an amendment
to the Income Tax (Inflationary Adjustments)
Law, 1985, which limits
the scope of the law starting 2008 and thereafter. Starting 2008,
the results for tax purposes will be measured in nominal values,
excluding certain adjustments for changes
in the Israeli CPI carried
out in the period up to 31 December 2007. The amended law includes,
inter alia, the elimination of the inflationary
additions and deductions
and the additional deduction for depreciation starting 2008.
b. As part of the Group's reorganization, and in light of the
Amendment of the Israeli Income Tax Ordinance in 2002,
the Company reached an agreement with the Israeli Tax
Authorities, with respect to profits derived by
YDI Inc. In principle, the agreement provided for reduced
taxation on the assessed assets of YDI Inc. In accordance
with this agreement (dated 17 August 2003), YDI Inc.'s
business assets were valued at approximately
US$ 15 million ("the Revaluated Assets"). Furthermore, it
was agreed that the Company will pay tax at the rate
of 7.5% of its share in the Revaluated Assets, amounting
to approximately US$ 1 million which was charged
to expenses in 2003. In addition, the agreement laid down
the transfer price to be applied by the Company
on payments abroad with respect to the merchandising
and the distribution of television series.
With respect to the taxation of profits
derived by DMI GmbH, DMI GmbH
obtained a ruling from the cantonal tax authorities in Zurich.
Based on this ruling, income generated
from foreign sources is subject
to a preferred tax rate of approximately 10.1% (overall tax
burden including federal, cantonal and communal corporate income tax
rate, calculated on net profit before taxes). Domestic income would
be subject to ordinary and full taxation for cantonal and communal
tax purposes, as well as for federal income tax purposes.
c. Taxes on income (tax benefit) included in
the statements of comprehensive income:
Year ended 31 December
2008 2009 2010
US$ '000 US$ '000 US$ '000
Continuing operations:
Current taxes 1,264 543 815
Deferred taxes 1,254 930 (293)
Taxes in respect of previous years (153) 196 10
2,365 1,669 532
Discontinued operations:
Current taxes - - -
Deferred taxes (199) (38) -
(199) (38) 532
Total 2,166 1,631 532
d. Deferred taxes:
Significant components of the Group's deferred tax assets
(liabilities) are as follows:
Investments Tax Intangibleassets Property Others Total
inproduction loss andequipment
ofTV series carryforward
US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
Balance as 786 781 (282) (646) (16) 623
of 1
January
2008
Amounts - - - - 28 28
included
in
the statement
of changes
in equity
Amounts (113) 1,283 42 16 *) (2,283) (1,055)
included
in
statement
of
comprehensive
income
Currency - 41 (9) 2 26 60
translation
differences
Balance as 673 2,105 (249) (628) (2,245) (344)
of 31
December
2008
Amounts (26) 1,298 30 (13) *) (2,219) (930)
included
in
statement
of
comprehensive
income
Deferred - (363) - 561 - 198
taxes
related
to
discontinued
operations
**)
Currency - 91 10 (4) (166) (69)
translation
differences
Balance as 647 3,131 (209) (84) (4,630) (1,145)
of 31
December
2009
Amounts (150) 823 4 41 (425) 293
included
in
statement
of
comprehensive
income
Currency - 119 (13) (3) (83) 20
translation
differences
Balance as 497 4,073 (218) (46) (5,138) (832)
of 31
December
2010
*) Mainly due to temporary differences arising on recognition of
certain revenues and expenses for tax purposes on cash basis.
**) See Note 18.
e. A reconciliation of theoretical tax expense assuming
all income is taxed at the statutory rate
applicable to the income of companies in Israel,
and the actual tax expense is as follows:
Year ended 31 December
2008 2009 2010
US$ '000 US$ '000 US$ '000
Profit (loss) before taxes on income 5,755 1,006 (4,057)
Provision at statutory rate - 27% (2008), 1,554 261 (1,014)
26% (2009) and 25% (2010)
Increase (decrease) in taxes resulting from:
Losses for which deferred taxes were (50) (195) -
not recorded in prior years
Non-deductible expenses 244 252 40
Different tax rates and changes in tax rates 628 1,203 1,805
Taxes in respect of previous years (153) 196 10
Differences in measurement basis - - (320)
Other 142 (48) 11
2,365 1,669 532
f. Carryforward losses for tax purposes:
The carryforward losses for tax purposes as of 31 December 2010 amount to approximately US$ 30,000 thousand (2009 - US$ 18,500 thousand, 2008 - US$ 7,500 thousand) mainly in Switzerland and in Israel. A deferred tax asset in respect of these losses is included in the balance sheet.
g. Tax rates:
Israel
In July 2009, the Israeli Parliament (the Knesset) passed the Economic Efficiency Law (Amended Legislation for Implementing the Economic Plan for 2009 and 2010), which prescribes, among other things, gradual reduction in the Israeli corporate tax rate starting from 2011 to the following tax rates: 2011 - 24%, 2012 - 23%, 2013 - 22%, 2014 - 21%, 2015 - 20%, 2016 and thereafter - 1 8%.
Switzerland
See Note 14b
h. Tax assessments:
The Company and the investees have received final assessments or assessments considered as final as detailed below:
Through the tax year
The Company 2004
Davka *) 2004
Dar 2004
Darset 2007
Paran 2004
The other investees have not yet been assessed since their
inception.
*) In December 2005, the Company signed a merger agreement with
Davka, pursuant to which Davka merged into the Company. In December
2006, an approval for the merger was received from the Israeli Tax
Authorities. As part of the approval, certain limitations were
imposed on utilizing the carry forward losses, ownership and
operating Davka's assets.
NOTE 16:-EQUITY
a. The share capital is composed as follows:
As of 31 December
2008 2009 2010
Number of shares
Authorized:
Ordinary shares of NIS 40,000,000 40,000,000 40,000,000
0.1 par value each
Issued and fully paid:
Ordinary shares of NIS 23,141,727 27,388,072 27,388,072
0.1 par value each
b. During 2008, the Company issued 141,000 Ordinary shares, upon the exercise of options by directors, in accordance with the Dori Media Group Ltd. 2004 Share Option Plan, for a total consideration of US$ 130 thousand.
On 6 June 2009, the Company issued to an institutional investor 670,323 Ordinary shares and warrants to purchase up to 479,763 Ordinary shares at an exercise price of NIS 7 (US $ 1.85) per share in consideration of GBP 670 thousand (approximately US $ 1,100 thousand). The warrants are exercisable until June 2014.
On 9 July 2009, the Company issued 1,757,840 Ordinary shares at price GBP 0.52 per share through an open offer in consideration of GBP 914 thousand (approximately US$ 1,350 thousand) (net of issuance expenses in the amount of US $ 150 thousand).
On 27 July 2009, the Company issued to an institutional investor 1,818,182 Ordinary shares and warrants to purchase up to 479,763 Ordinary shares at an exercise price of NIS 7 ( US $ 1.85) per share in consideration of GBP 1,818 thousand (approximately US$ 3 million) (net of issuance expenses in the amount of US $ 33 thousand). The warrants are exercisable until June 2014.
c. Stock Option Plan:
In September 2004, the Company authorized a Stock Option Plan for the issuance of options to purchase up to 2,000,000 Ordinary shares of the Company. The options granted under this Plan to employees and directors vest over periods of four and three years, respectively. The options are granted with an exercise price denominated in NIS and GBP and expire 10 years after the date of grant. The options to employees and directors in Israel are granted under sections 102 and 3(i) of Israel's Income Tax Ordinance.
The weighted average fair value of options granted by the Company in September 2004 under the 2004's share option plan was US$ 1.46 per share and was estimated based on the following data and assumptions: share price - US$ 2; exercise price - US$ 0.65; expected volatility - 25.6%; risk-free interest rate 4.9%; expected dividends - 0%, and expected average life of options - 3 years.
In 2005, the Company agreed to grant to the former CEO of DMI GmbH options to purchase 50,000 Ordinary shares of the Company. The options were subject to the achievement of certain profit targets.
50% of the options were granted after the publication of the 2006 annual audited financial statements, and vested (see also b). The remaining options were forfeited in 2007 due to the termination of employment of the CEO.
On 15 March 2007, the Company granted share options for the purchase of 411,500 Ordinary shares to directors, officers and employees under the Company's 2004 Share Option Plan.
The weighted average fair value of options granted by the Company in March 2007 was US$ 1.74 per share and was estimated based on a pricing model ("Binomial Model") and on the following data and assumptions: share price - GBP 1.62 (US$3.3); exercise price - GBP 1.3933 (US$ 2.7); expected volatility - 47%; risk-free interest rate 4.9%; expected dividends - 0%, and expected average life of options - 4 years.
On 22 August 2007, the Company granted to the CEO of DMA Inc options to purchase 120,000 Ordinary shares of the Company. The options vest in three tranches, with each tranche (amounting to 40,000 shares) becoming exercisable provided that the sales targets for 2008, 2009 and 2010, as determined by the Company, are achieved. The options are exercisable for a period of 10 years from the grant date. The options were forfeited in 2009 due to the termination of the CEO of DMA.
The weighted average fair value of options granted by the Company in August 2007 was US$ 1.737 per share and was estimated based on a pricing model ("Binomial Model") and on the following data and assumptions: share price - GBP 1.6975 (US$ 3.38); exercise price - GBP 1.615 (US$ 3.216); expected volatility - 33%; risk-free interest rate 5.03%; expected dividends - 0%, and expected average life of options - 3 years.
Upon the acquisition of Paran in 2007 (see Note 22d), the Company granted share options for the purchase of 75,000 Ordinary shares to employees of Paran under the Company's 2004 Share Option Plan.
On 24 February 2008, the Company granted share options for the purchase of 447,375 Ordinary shares to directors, officers, employees and others under the Company's 2004 Share Option Plan.
The weighted average fair value of options granted by the Company in February 2008 was US$ 1.91 per share and was estimated based on a pricing model ("Binomial Model") and on the following data and assumptions: share price - GBP 1.755 (US$3.45); exercise price - GBP 1.755 (US$ 3.45); expected volatility - 43.48%; risk-free interest rate 4.7%; expected dividends - 0%, and expected average life of options - 3 years.
In August 2008, the Company authorized an increase in the option pool of 1,000,000 Ordinary shares of the Company. The Stock Option Plan was further amended to include Restricted Share Unit (RSUS).
On 21 August 2008, the Company granted to a Senior Advisor of Novebox (formerly: DMW) options to purchase 40,000 Ordinary shares of the Company at an exercise price of GBP 1.035 (US$ 1.92). The options granted vest in 4 tranches, with each tranche (amounting to 10,000 shares) under the Company's 2004 Share Option Plan. The weighted average fair value of the options granted was US$ 1.2 per share. The options are exercisable for a period of 10 years from the grant date.
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options during the year:
Year ended 31 December
2008 2009 2010
Number WAEP (US$) Number WAEP (US$) Number WAEP (US$)
Outstanding 1,503,250 1.59 1,849,625 1.66 1,715,875 1.75
at
beginning
of
year
Granted 487,375 3.27 - - - -
during
the
year
Exercised (141,000) 0.84 - - - -
during
the year
*)
Forfeited - - (133,750) 2.6 (49,700) 2.46
during
the
year
Outstanding 1,849,625 1.66 1,715,875 1.75 1,666,175 1.69
at
end of
year
Exercisable 1,389,499 1.41 1,226,021 1.38 1,455,863 1.55
at
end of
year
*) The weighted average share price at the date of exercise in
2008 was GBP 1.584.
d. Convertible loans - see Note 13.
e. Nature and purpose of other reserves:
1. Asset revaluation surplus:
The asset revaluation surplus reflects the increase in the fair value of the identifiable net assets of the Company's interests in entities prior to the acquisition of the controlling interest.
2. Foreign currency translation reserve:
The foreign currency translation reserve is used to record exchange rate differences arising from the translation to the U.S. dollar of the financial statements of those companies in the Group whose functional currency is not the U.S. dollar.
NOTE 17:-SUPPLEMENTARY INFORMATION TO THE STATEMENTS OF
COMPREHENSIVE INCOME
Year ended 31 December
2008 2009 2010
US$ '000 US$ '000 US$ '000
a. Revenues:
Rights in TV series (*) 20,355 13,795 12,716
Broadcasting TV channels 29,726 34,402 33,795
Internet website - - 42
Other 346 519 470
50,427 48,716 47,023
(*) Includes contract revenues from TV series in the amount of
US$ 5,210 thousand and US $ 6,155 thousand in 2009 and 2010,
respectively.
Year ended 31 December
2008 2009 2010
US$ '000 US$ '000 US$ '000
b. Cost of revenues:
Rights in TV series 5,658 7,839 9,975
Broadcasting TV channels 21,411 23,078 22,103
Internet website 180 1,375 1,200
Other 619 1,056 2,323
27,868 33,348 35,601
*) Included in cost of revenues:
Amortization 22,203 24,108 27,364
c. Selling and marketing expenses:
Advertising and marketing expenses 3,765 2,693 1,970
Commissions 1,061 630 1,112
4,826 3,323 3,082
Year ended 31 December
2008 2009 2010
US$ '000 US$ '000 US$ '000
d. General and administrative expenses:
Salaries and related benefits 4,492 4,061 4,165
Management fees to related 2,100 1,925 1,682
parties and others
Rental fees and maintenance of offices 1,453 1,513 1,501
Professional fees 1,692 1,291 1,452
Depreciation and amortization 399 508 382
Doubtful accounts and bad debts - 203 1,493
Travel expenses 457 339 265
Others 570 561 640
11,163 10,401 11,580
e. Financial expenses, net:
Bank loans and overdrafts 682 673 740
Income from deposits (3) - -
Other 143 (35) 77
822 638 817
NOTE 18:-DISCONTINUED OPERATIONS
On December 29, 2009, the Company signed an agreement to sell
its 50% interest in DMCS, which operated TV production studios in
Argentina, for US$ 850 thousand to the other 50% shareholder of
DMCS and to another party. The sale was subject to approval by the
Labor Ministry of Argentina, which approval was received in January
2010.
In accordance with IFRS 5, the assets and liabilities of DMCS
were presented as assets and liabilities held for sale in the
consolidated balance sheet, as of 31 December 2009.
The operating results of DMCS were presented as discontinued
operations in the consolidated statement of comprehensive income
for 2009 and 2008.
Composition of income and expenses related to discontinued
operations:
Year ended 31 December
2008 2009 2010
US$'000 US$'000 US$'000
Revenues 599 176 -
Cost of revenues (128) (17) -
Operating expenses *) (211) *) (123) -
Financial expenses, net (10) - -
Profit before tax 250 36 -
Tax benefit 199 - -
Profit from discontinued operations 449 36 -
Impairment of goodwill recognized - (836) -
on remeasurement to fair value
Selling expenses - (22) -
Tax benefit - 38 -
Total profit (loss) from 449 (784) -
discontinued operations
*) Includes depreciation in the amount of US $ 90 thousand.
Composition of main groups of assets and liabilities held for
sale as of 31 December 2009:
December 31, 2009
US$'000
Cash and cash equivalents 8
Trade and other current receivables 230
Property and equipment, net 2,392
Total assets 2,630
Trade and other payables 1,048
Other long-term liabilities 371
Deferred tax 361
Total liabilities 1,780
Composition of the net cash flows related to discontinued
operations:
Year ended 31 December
2008 2009 2010
US$'000 US$'000 US$'000
Net cash flows from operating activities (54) 923 -
Net cash flows from financing activities 39 (956) -
Net cash flows from discontinued operations (15) (33) -
NOTE 19:-EARNINGS PER SHARE
The following reflects the income and share data used in the
basic and diluted earnings per share computations:
Year ended 31 December
2008 2009 2010
US$ '000 US$ '000 US$ '000
Profit (loss) for the year 2,754 (1,809) (5,421)
from continuing operations
attributable
to equity holders of the parent
for basic earnings per share
Profit import of assumed conversion - - -
of convertible debt
Profit (loss) for the year 2,754 (1,809) (5,421)
from continuing operations
attributable
to equity holders of the parent for
diluted earnings per share
Profit (loss) for the year from 449 (784) -
discontinued operations
attributable to
equity holders of the parent for basic
and diluted earnings per share
Weighted average number 23,099,928 25,154,096 27,388,072
of Ordinary shares for
basic earnings per share
Effect of dilution:
Share options 467,201 - -
Convertible loans - - -
Adjusted weighted average 23,567,129 25,154,096 27,388,072
number of Ordinary
shares for diluted earnings per share
Share options and convertible debt have not been included in the
calculation of diluted earning per share in 2009 and 2010 because
they are anti diluted.
NOTE 24:-SEGMENT INFORMATION
a. General:
1. The Group companies operate in three principal business segments: production, sale and distribution of TV series, broadcasting of TV channels and Commercial internet platform.
2. The segment's assets include all the operating assets which are used by the segment and are composed mainly of cash and cash equivalents, trade and other receivables, equipment and other assets. Most of the assets are attributed to a specific segment.
3. The segment's liabilities include all the operating liabilities that derive from the operating activities of the segment and are composed mainly of trade payables and other accounts payable. The segment's assets and liabilities do not include taxes on income.
4. As described in Note 18, in 2009 the Company signed an agreement to sell its 50% interest in DMCS. In prior years the results of DMCS which are presented as discontinued operations in the statement of comprehensive income, are included in the segment disclosures.
Year ended 31 December 2008
Rights ofTV series Broadcastingof TVchannels Commercialinternetplatform Other Adjustments Totalconsolidated
US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
Revenues:
Sales to external 20,355 29,726 - 945 (599) 50,427
customers
Inter-segment sales 513 - - 3,168 (3,681) -
Totalrevenues 20,868 29,726 - 4,113 (4,280) 50,427
Segment results 5,354 4,583 (502) 700 (2,058) 8,077
Unallocated expenses (1,507)
Operating profit 6,570
Financial expenses, 822
net
Other income, net (7)
Taxes on income 2,365
Profit for the 3,390
year from
continuing operations
Assets
and liabilities:
Segment assets 44,886 16,827 2,009 4,650 68,372
Unallocated assets 5,199
Totalassets 73,571
Segment liabilities 14,542 9,104 260 1,118 25,024
Unallocated 5,835
liabilities
Totalliabilities 30,859
Other segment
information:
Capital expenditure:
Tangible fixed assets 418 335 - 170 923
Intangible assets 13,051 20,485 1,340 - 34,876
Depreciation and 321 305 - 168 794
impairment
Amortization and 4,251 17,580 67 - 21,898
impairment
Year ended 31 December 2009
Rights ofTV series Broadcastingof TVchannels Commercialinternetplatform Other Adjustments Totalconsolidated
US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
Revenues:
Sales to external 13,795 34,402 - 695 (176) 48,716
customers
Inter-segment sales 94 - - 3,036 (3,130) -
Totalrevenues 13,889 34,402 - 3,731 (3,306) 48,716
Segment results 145 4,343 (2,280) 338 (58) 2,488
Unallocated expenses (844)
Operating profit 1,644
Financial expenses, 638
net
Other income, net -
Taxes on income 1,669
Loss for the year from (663)
continuing operations
Assets
and liabilities:
Segment assets 47,049 20,937 1,795 3,527 73,308
Unallocated assets 5,434
Totalassets 78,742
Segment liabilities 8,235 12,151 89 3,208 23,683
Unallocated 8,660
liabilities
Totalliabilities 32,343
Other segment
information:
Capital expenditure:
Tangible fixed assets 147 118 - 59 324
Intangible assets 13,221 18,321 - - 31,542
Depreciation and 304 282 - 166 752
impairment
Amortization and 7,368 16,186 400 836 24,790
impairment
Year ended 31 December 2010
Rights ofTV series Broadcastingof TVchannels Commercialinternetplatform Other Adjustments Totalconsolidated
US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
Revenues:
Sales to external 12,716 33,795 42 470 - 47,023
customers
Inter-segment sales 38 - - 2,439 (2,477) -
Totalrevenues 12,754 33,795 42 2,909 (2,477) 47,023
Segment results (3,348) 3,387 (2,096) 177 (312) (2,192)
Unallocated expenses (1,048)
Operating profit (3,240)
Financial expenses, 817
net
Other income, net -
Taxes on income (532)
Profit for the year (4,589)
Loss for the year from (4,589)
continuing operations
Assets
and liabilities:
Segment assets 45,827 21,427 3,003 1,145 71,402
Unallocated assets 7,013
Totalassets 78,415
Segment liabilities (9,858) (15,486) (247) (708) (26,299)
Unallocated (10,357)
liabilities
Totalliabilities (36,656)
Other segment
information:
Capital expenditure:
Tangible fixed assets 230 75 - 117 422
Intangible assets 8,254 17,089 - 21 25,364
Depreciation and 204 332 - 195 731
impairment
Amortization and 9,666 17,050 400 - 27,116
impairment
c. Geographic information:
The following tables present revenues from external 0.
customers and non-current assets,
based on geographical areas, for the years
ended 31 December 2008, 2009 and 201
Year ended 31 Israel Europe CentralandSouthAmerica Asia Other 2008Total
December 2008 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
Sales to external 31,099 7,390 6,632 4,470 836 50,427
customers
Israel Switzerland Argentina Other 2008Total
US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
Non-current assets 13,993 23,818 7,400 258 45,469
Year ended 31 Israel Europe CentralandSouthAmerica Asia Other 2009Total
December 2009 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
Sales to external 38,468 2,747 2,725 4,446 330 48,716
customers
Israel Switzerland Argentina Other 2009Total
US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
Non-current assets 16,767 29,109 541 231 46,648
NOTE 24:-SEGMENT INFORMATION (Cont.)
Year ended 31 Israel Europe CentralandSouthAmerica Asia Other 2010Total
December 2010 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
Sales to external 35,283 3,633 2,324 5,239 544 47,023
customers
Israel Switzerland Argentina Other 2010Total
US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
Non-current assets 19,216 25,267 1,148 206 45,837
Non-current assets include net investments in rights of
television series, intangible assets, property and equipment and
other long-term assets.
-----------------
Dori Media (LSE:DMG)
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Dori Media (LSE:DMG)
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부터 11월(11) 2023 으로 11월(11) 2024
