ots Ad hoc-Service: artnet.com AG <DE0006909500> artnet.com announces results for first quarter 2000
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@ Revenues nearly double in comparison with year-ago period @ Substantially increased traffic and growing revenue streams @ Improved operating results as revenues rise faster than costs
artnet.com, the leading web site for art information and e-commerce, has announced improved operating results for the quarter ended March 31, 2000. Revenue for the quarter amounted to $1,019,000, up 96% over the first quarter 1999 ($520,000) and an increase of 20% over the fourth quarter 1999 ($851,000). The increased revenue reflects a further expansion in the customer base and a broader range of products compared to the previous year. Traffic has continued to increase rapidly, having tripled in 1999 and risen by 77% in March 2000 over the preceding December. Page views now approach 4 million per month.
The online gallery network made the largest contribution to revenue with $720,000 during the three-month period, up 72% over the first quarter 1999 and 10% over the prior quarter. Subscription revenue for the Fine Art Auctions Database rose to $226,000, an increase of 125% over the $100,000 in the year- ago period and up 67% in comparison with the $135,000 in the fourth quarter 1999. The online bookstore, launched in 1999, had revenue of $44,000 in the first quarter in comparison with $73,000 for all of 1999. Auction revenue was $29,000 for the quarter in comparison with $87,000 for all of 1999, although the auctions did not operate for the full period due to the installation of an important software upgrade.
Total operating expenses were $5,166,000 in the quarter, up from $1,971,000 in the year-ago period, but down from $5,935,000 in the fourth quarter 1999. Cash operating expenses rose to $4,312,000 in the three months from $1,792,000 in the year-ago period, but declined by $816,000 from the fourth quarter of 1999, as investment in personnel, marketing and infrastructure has now leveled off.
Loss from operations was $4.1 million, compared with $1.5 million in the first quarter 1999 and $5.1 million in the fourth quarter 1999. The quarter-on-quarter decline in loss reflected higher revenue and lower general, administrative, sales and marketing costs. After interest income, income tax credits and minority interest, net loss for the quarter was $4.04 million compared to $1.11 million for the year-ago period and $3.20 million for the fourth quarter 1999. Net loss per share for the quarter was Euro 0.93 compared to Euro 0.26 for the year-ago period. These results are in line with the companys business plan and consistent with market expectations for artnet.com at this phase in its development.
The company finished the quarter with $11.9 million in cash resources in comparison with $16.5 million at year-end 1999. The company anticipates that its funding will be sufficient to complete the 2000 calendar year. With a variety of equity funding sources approaching the company for investment, artnet.com expects to obtain further financing to realize its strategic plan in the coming months. The full text of the report is available at http://www.artnet.com/ir
Contact persons: Grace E. Schalkwyk, Chief Financial Officer, artnet.com investorrelations@artnet.com
Tel.: 001-212-497-9700 x256
Dr. Michael Rust, Burson-Marsteller GmbH Michael_Rust@de.bm.com
Tel.: +49 (0) 69-2 38 09 23
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