They aren't announcing it, their auditors are. It is required by FASB, and by the SEC since the company is publicly traded. Think Enron and Arthur Andersen.

Here's what you need to know:

1. they lost over E900M last year, and have lost Euros 3 of the last 4. the only reason they showed a profir in FY09 was an accrual basis tax credit, which doesn't really give you any extra cash in the bank.

2. they can no longer borrow money from banks. I've never heard of a pornographer having the stones to walk into a bank and ask for a loan, maybe in happens in bizarro-Porn Valley.

3. the "notes" mentioned by the company from their auditor say:

"4. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has not yet reestablished profitable operations. The Company has suffered recurring losses from operations over the past years and has a working capital deficit. These factors raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

5. Also, in our opinion, the financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

/s/ BDO Auditores, S.L.
BDO AUDITORES, S.L.
Barcelona, Spain
May 31, 2011"

and from the company's notes:

"In each of the past three years we have experienced losses from operations. At December 31, 2010, we had cash and cash equivalents of EUR 370,000 and a working capital deficit of EUR 1,102,000. As a result, our independent registered public accounting firm has concluded that there is substantial doubt as to our ability to continue as a going concern, and has modified its report in the form of an explanatory paragraph describing the events that have given rise to this uncertainty. Our ability to continue as a going concern is based on our ability to generate or obtain sufficient cash to meet our obligations on a timely basis and ultimately to attain profitable operations. We currently expect future growth, reduction in cost and expenses and to return to profitability provided we are successful with the following objectives:..."

http://sec.gov/Archives/edgar/data/1068084/000119312511158448/d10k.htm