LONDON (Alliance News) - DCD Media PLC, an independent television production and distribution group, narrowed losses, but revenues stayed flat for the half year ended June 30.
The company said slower-than-expected conversion rates of potential commissiona had hampered performance. It also warned that the "Bridezillas" reality television series, a major revenue contributor for its US production unit, had been cancelled.
The company posted revenues roughly flat year on year at GBP7.4 million. It posted a pretax loss of GBP1.2 million, narrowed from GBP1.2 million in the previous year. Increases in revenues from rights offset a reduction of revenues from production.
DCD Media said that although it has a growing pipeline of potential commissions, conversion rates had been slower than expected. Going forward the company said that it would look to reduce costs and invest in creative development to win new commissions. Although this strategy is challenging, DCD said, it was confident it would deliver.
DCD Media's US production revenue is driven by its September Films USA unit. Earlier Monday, DCD Media said it was informed on Friday by the unit's partner WE: Women's Entertainment LLC that WE tv will not commission an 11th series of US reality television programme Bridezillas.
DCD Media said the production has made a large contribution to its revenue in recent years, and unless replaced by new productions, "will result in substantially reduced revenue in 2014".
"The directors are reviewing the group's activities and intend to reduce operating costs to operate within their reduced revenue expectations," DCD said in a statement. "The directors are currently confident that they can successfully implement this strategy."
DCD Media said, "September Films USA has made significant progress on a number of new projects under paid development deals by US broadcasters to be announced in the coming months."
Shares in DCD Media were trading down 12% at 695.00 pence Monday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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