Given the rapidly changing market in which consumer demand for DSLRs is diminishing and being replaced by demand for smaller, lighter, and less expensive mirrorless cameras; I'm now pleasantly surprised anytime there is a major update in medium format DSLRs or digital backs. The future is always hard to predict, but the overall trends are clearly visible and investments by manufacturers have to include at least some nod to those along with financial realities. I'm always hopeful for new products and updates and pleased when we get a surprise from a manufacturer... and they do like to surprise us when they can.
Recent years have been financially difficult for Phase One Group ApS. While Capture One generates profits, with a pretax profit in 2020 of €5.5 million on revenue of €22.6 million, it hasn't been generating enough profit to cover the losses generated by the Phase One hardware business. Phase One Group ApS was created following the acquisition of Phase One in June, 2019 by Danish private equity investment firm Axcel and its partners.
Phase One Group ApS controls two corporations, Phase One A/S and Capture One A/S, which were split into separate corporate entities as of January 1, 2020. Phase One A/S in Denmark; its subsidiaries in Japan, Hong Kong, and USA; and its subsidiary Leaf in Israel constitute the group's hardware business. Capture One A/S in Denmark and its new subsidiary in Greece incorporates the group's software business. Financial results for 2021 won't be released until later this summer, but 2020 ended with a loss of €10.9 million on revenue of €68.9 million. 2019 resulted in a loss of €14.5 million on revenue of €72 million for all of the combined Phase One Group ApS companies.
I want to be clear that I'm NOT providing this information in order to worry anyone. I just want to encourage realistic expectations from users toward ALL of the camera manufacturers we rely upon for the tools we use. The reality for every camera maker is that the digital camera market is a roller coaster and has been for decades. Profits and losses turn quickly up and down and are largely dependent on product cycles and rapidly changing consumer demand.
Recent financial difficulty, for any company, does NOT mean that new products or updates are not coming or on the horizon. Funds acquired thru borrowing and from investors, in addition to existing working capital, are still funneled into new product development and R&D. I'm only suggesting that those anxiously awaiting new developments consider the trends in consumer demand and markets in setting their expectations. Some of the companies discussed here — which loom large in our photo consciousness — are relatively small companies that, considering their size, do pretty remarkable things in the quality and variety of tools they provide for us to delight in using and to criticize in whatever may be their shortcomings.
** Updated financial results with revenue added for 2020. Revised revenue and loss to include all of calendar year 2019 which previously only covered the period following acquisition by private equity firm Axcel. Edited corporate structure information for better clarity. Financial information converted from Danish Krone to Euro at current exchange rate.