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    Announcement in accordance with paragraph 15 of German Securities Law (WpHG) reports higher revenues in six-month 2000 period @ Revenues increase by 90% over year-ago period @ Further revenue potential from new products expected in second half @ Operating loss declines in the second quarter, the leading web site for art information and e-commerce, reported higher revenues from growth in all lines of business in the first half and lower operating expenses for the second quarter. Revenue in the first half of 2000 was $2.128 million compared to $1.118 million in the first half of 1999. Revenue in the second quarter was $1.109 million, an 85% increase over the year-ago period. Compared to first quarter revenue of $1.019 million, second quarter revenue rose by 9%. The improved results are due to strong renewals and increasing numbers of clients in the online gallery network, and higher sales in the Fine Art Auctions Database.

    In the second quarter, the online gallery network continued to be the largest contributor to revenue with $779,000, an increase of 76% compared to the year-ago period and 8% compared to first quarter 2000. The number of participating galleries increased by 53 during the second quarter to reach a new record high of 1,100. Subscription revenue from the Fine Art Auctions Database rose to $233,000, an increase of 102% compared to the year-ago period and 3% compared to first quarter 2000. expects significant revenue increases in both lines of business in the second half as a result of product enhancements, further strong renewals and price increases. The newly launched Printstore and the African Arts Auctions Database will generate additional revenue.

    The Online Bookstore, which was launched in 1999, recorded revenue of $76,000 in the first half of 2000. Revenue from auctions, also launched in 1999, was $94,000 in the first half of 2000. The average value of the lots sold in the second quarter was $2,114 with a total of 322 lots sold.

    Total operating expenses for the first half were $9.9 million, up from $6.2 million in the year-ago period. Total operating expenses for the second quarter were $4.7 million, down 8% from the first quarter level of $5.2 million. Cash operating expenses were $7.7 million for the six months and $3.8 million for the quarter, down 6% from the first quarter. The six month operating loss was $7.8 million compared to $5.1 million for the prior year period. The operating loss improved to $3,625,000 for the second quarter, compared to $4,147,000 for first quarter. This positive development is the result of greater efficiency in marketing and a stabilization of investments in staff and infrastructure. Following the completion of certain technical projects for new products and operating systems, technology expenses were also reduced.

    Net loss for the six months was $8,450,000 compared to $4,680,000 in the year-ago period. Net loss for the quarter after net interest income, income tax provision and minority interest rose slightly to $4,411,000 in comparison with $4,039,000 for the first quarter. These results are in line with the companys business plan.

    The company finished the first half with $8,859,000 in cash resources compared to $16,477,000 at December 31, 1999. The company anticipates that it has sufficient liquidity to fund operations into 2001. is currently in contact with investors in the international capital markets in preparation for additional financing and anticipates it will be completed on schedule.

Contact for Grace E.Schalkwyk Chief Financial Officer Tel.: 001-212-497-9700 x256

Further information from: Dr.Michael Rust, Burson-Marsteller GmbH Tel.:+49 (0) 69-2 38 09 23

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