MAGNA PACIFIC LIFTS FULL YEAR FORECAST ON PROFIT JUMP.

BRISBANE, Feb 2 Asia Pulse - Independent film and video distributor Magna Pacific Holdings Ltd (ASX:MPH) has reported a large profit jump, posting net profit of $2.002 million for the six months to December 31, 2003, up from $A808,000 ($US615,413.2) in the previous corresponding period.

Magna today lifted its full year earnings forecast after recording the profit jump.

Managing director Alan Radley said the strong half yearly result had led Magna Pacific to upgrade its revenue forecast for fiscal 2004 to more than $40 million (previously $35 million), an increase of 40 per cent on the company's revenue last year of $29 million.

"We now expect net profit after tax will double to $3.5 million this financial year, a 100 percent increase on the company's 2003 result of $1.75 million," he said.

The company said it was continuing to search for DVDs in other sectors of the market, such as children's and music DVDs, with the company ramping up its release rate to 60 DVDs a month, from 40 a month produced last year.

Magna continued to build on its success in DVD distribution, with economies of scale gained in a rapidly growing DVD market the main drivers behind the improved result, the company said.

"We have now reached a size where economies of scale are dropping straight to the bottom line and our cost structures are mature," it said.