May 31, 2002
artnet AG posts further improved results profit for 2002 expected.
Frankfurt / New York, March 31, 2002 - In a difficult economy artnet AG had stable sales of EUR 1.43 mio (EUR 1.43 mio in the first quarter 2001) while reducing the loss for the quarter to EUR 0,2 mio (EUR 2.4 mio in Q1/2001). Refocused on their core business, artnet significantly reduced costs and produced a marked improvement in all key numbers. Break even is expected for the second quarter 2002. .The operating cash flow, too, was significantly reduced toEUR 0.5 mio (minus 2.0). Cash declined only slightly by EUR 0.07 mio to EUR 0.095 mio (EUR 0.16 mio). The company expects to close the year with a positive cash result.
Sales for the Fine Art Auctions Database were particularly strong, almost doubling to EUR 0.71 mio (EUR 0.37 mio) as artnet consolidated its position as the leading resource art professionals. artnet's Online Gallery Network, which presents gallery websites, was affected by a weak art market and posted slightly reduced sales of EUR 0.75 mio (EUR 0.99 mio). Operating expenses were reduced by more than half to EUR 1.6 mio (EUR 3.8 mio) mostly by a reduction in the number of employees from 74 to 42. The goal is to reduce monthly costs to below EUR 0.5 mio in order to secure a positive result on a cash basis for the current year.
For the remainder of the year 2002 management expects double-digit growth based on the stable growth of the Fine Art Auction Database and supported by the introduction of new products and features.
Contact:
Hans Neuendorf
Chief Executive Officer
61 Broadway, 23rd Floor
New York, NY 10006
Tel: 001-212-497-9700 x638
Fax: (1) 212-497-5001
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