UK indie DCD Media has reported flat revenue of £7.4 million (US$12.1 million) for the first half of this year as distribution deals offset a “slower than anticipated” commissions pipeline.
Yesterday, DCD issued a forward-looking profit warning following the news US cable channel WE tv would not commission an 11th season of DCD’s biggest revenue-driving series Bridezillas.
It then released financial results for the six months to June 30, 2013, which showed revenue at the same level as the same period in 2012 and an operating loss of £1.1 million. The latter figure narrowed previous year losses by £1 million.
Last year, sports broadcasting firm Timeweave took control of DCD through an equity swap and then launched a new £1 million acquisitions fund, but the news of Bridezillas’ ending on WE tv and commissions not yet getting away leave the company vulnerable to future losses.
“DCD Media has seen some significant change in the period with the focus on development within the production companies,” said DCD CEO and executive chairman David Craven. “This has led to a growing pipeline of potential commissions, however, conversion of these has been slower than anticipated.”
He reiterated that DCD’s executive team was focusing on “rationalising the operations to help create a stable platform for future profitable growth, whilst maintaining a measured commitment to recruiting fresh and exciting new creative talent across the group”.
Craven added that “further new commissions will be required to replace the Bridezillas income”. Productions from DCD prodcos Matchlight, Rize USA, September Films UK and Prospect contributed £1.6 million in revenue but made an overall loss of £600,000.
DCD claimed Brdiezillas producer September Films USA had made “significant progress on a number of new projects under paid development deals by US broadcasters to be announced in the coming months”.
DCD Rights increased revenue by £700,000 year-on-year to £2.5 million and distribution will become more important to the business going forward.
“The board continues with its stated imperative to build a sustainable, vertically-integrated media business,” said Craven. “The key stages in this process are to reduce costs which are disproportionate to the revenue derived from the TV production business in general, then invest in creative development to win new commissions which ultimately will be harvested through the rights and licensing business.”