DCD Media losses widen, warns pandemic could “significantly change” production business

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DCD Media Plc (LON:DCD) has reported a wider loss in its full year results while also warning that the fallout from the pandemic could “significantly change” the production business in 2020 and beyond.

For the 15 months ended March 31, the independent TV distribution and production group reported an operating loss of £0.15mln loss compared to a £0.07mln loss in the previous year, while revenues climbed to £10.9mln from £7mln.

The firm also highlighted that its rights catalogue had expanded to over 3,500 hours of programming from 3,000 hours in the period, although it blamed the widened loss in the year on “a number of exceptional items which were deemed irrecoverable and discontinuing” that were not likely to recur.

Looking ahead, DCD said while it had maintained relationships with independent producers and has commitments on live productions, it said if the effects of the pandemic worsen in the short-term this will have “a serious impact” on its business into its next financial year.

Executive chairman and chief executive David Craven added that while sales negotiations for 2020 looked promising, obtaining commitments remained “an ongoing challenge for the sales team”.

“The market is in flux presently and we expect more uncertainty around future productions, what DCD Rights can realistically acquire in the coming months and in particular its continued focus on dramas will be reliant on the production world being able to kick-start operations”, he said.

DCD’s shares were flat at 220p in early deals on Friday.

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