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ots Ad hoc-Service: artnet.com AG <DE0006909500>

Frankfurt (ots Ad hoc-Service) -

The sender is solely responsible for the contents of this
announcement.
Announcement in accordance with paragraph 15 of German
Securities Law (WpHG)
artnet.com 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
artnet.com, 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. artnet.com 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. artnet.com 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 artnet.com: 
Grace E.Schalkwyk
Chief Financial Officer  
gschalkwyk@artnet.com 
Tel.: 001-212-497-9700 x256
Further information from: 
Dr.Michael Rust, Burson-Marsteller GmbH 
Michael_Rust@de.bm.com 
Tel.:+49 (0) 69-2 38 09 23

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