In the first quarter of 2007 the turnover of the Company reached 33,1 million euros vs. 30,6 million euros in the first quarter of 2006, increased by 8,2%.
The improvement of the turnover was brought about by both the increase of the advertising revenues by 10,3%, (Q1 2007: 10,8 million vs. Q1 2006: 9,8 million) and the circulation revenues that increased considerably by 10,5% reaching 18.5 million vs. 17,1 million in the first quarter 2006 despite the suspension of two loss-making titles, FHM and Discovery and Science. The 1,8 million increase in circulation revenues is primarily attributable to the success in the complimentary sales of books in points of sales of press.
Also, the gross margin increased significantly from 34,7% in the first quarter of 2006 to 39,3% in 2007, that is mainly attributed to the effective management of the various promotional products and to the reduction of the number of returned (unsold) copies as a result of efficient distribution of the print run to the points of sale.
The profit before tax for the first quarter of 2007 reached 7,5 million euros vs. 6,9 million euros in the first quarter of 2006, increased by 8,7%, underpinned by financial earnings.
The Company's net debt to banks decreased from 24,2 million euros on 31.3.2006 to 14,5 million euros on 31.3.2007.
Following the approval of the Ordinary Meeting of the Company's Shareholders on 24.5.2007 the Company will distribute dividend for the fiscal year 2006 amounting to 4,15 million euros, corresponding to 0,05 euros per share.
In the first quarter of 2007 on a consolidated basis the Group's turnover reached 62,3 million euros vs. 58,6 million euros in the respective quarter of 2006, increased by 6,3%. This increase resulted not only from the increased sales of the Group's publishing sector (by approximately 2 million euros) but also from the other business activities of the Group. The digital media business sector, having strategic importance and priority for the Group, contributes increasingly to the consolidated turnover.
The consolidated gross margin was improved from 27,6% in the first quarter of 2006 to 28,3% in the respective quarter of 2007, while the bottom-line loss for the Group was significantly reduced from 2,4 million to 1,8 million euros in the respective periods.
The increase in the Company's and the Group's turnover in the first quarter of 2007, attributable both to the increased circulation and advertising revenues, combined with the program to reduce the production costs and specifically the cost of promotional products along with the successful reduction in the number of returned (unsold) copies fall within the scope of the Management's three-year business plan towards the financial reinforcement of the Group and profitable growth. These policies are expected to yield steadily positive results in the future and bolster the position of the Group in the media sector.