- Auctions Achieves Double-Digit Revenue Increase in the First Quarter of 2019
- Ad Space on artnet News Remains in High Demand
- Traffic Increased by 24% to 3.5 Million Average Monthly Visitors
BERLIN, GERMANY and NEW YORK, NY / ACCESSWIRE / May 10, 2019 / Berlin-based artnet AG grew overall revenue in the first quarter of 2019 by 3% to $5.3 million year-over-year due to strong growth in the segments Auctions and News. The net loss in the first quarter narrowed to $(43k) as compared to a net loss of $(370k) in the previous financial year.
artnet Auctions confirmed the positive growth trajectory of the previous quarter, increasing fee-based revenue in the first three months of 2019 by 12% to $1.1 million year-over-year. Auctions was again profitable after achieving a positive contribution margin for the first time in 2018. The average price of lots sold increased by 38% to $16,000. "We focus on high-quality artworks that clients can trade online more quickly and cost-effective as compared to traditional auctions. The market increasingly takes advantage of these benefits," said Jacob Pabst, CEO of artnet. The top lot in the first quarter was a sculpture by the British-Indian artist Anish Kapoor, Untitled (2013), which sold for $300,000. In the fourth quarter of 2018, the strategic focus on high-quality art led to the highest revenue at Auctions since the inception of the platform in 2008.
Advertising revenue also rose 12% to $1.0 million, driven by strong demand for ad space on artnet News. In the News segment, advertising revenue increased by 31%. News contributed almost three-quarters to total advertising sales. The popularity of artnet News, firmly established as the leading online source for exclusive reporting and in-depth commentary on the art market, strengthens the entire artnet brand. Traffic across all artnet domains in the first quarter increased by 24% to a monthly average of 3.5 million visitors.
Galleries revenue decreased by 7% to $1.2 million. The number of Gallery Network members declined because many smaller and medium-sized galleries continue to struggle with persistently high operating costs, and also due to unusually high competition in this sector. "We are expanding the sales team, adjusted the membership packages and are launching initiatives to drive more visitors to the gallery pages. We are confident that the recovery of the previous year will continue in 2019," said CEO Pabst. In 2018, artnet redesigned the gallery pages, enabling gallery members to manage their inventory more efficiently and to showcase their artists to a global audience on the web.
Revenue at the Price Database, artnet's core segment, was unchanged at $1.9 million, The database features more than 12.5 million auction results and remains the gold standard of the industry, artnet profited from the continued demand for high-quality market data.
For the current 2019 financial year, artnet continues to expect an increase in overall revenue to a range between $23 million to $24 million. In the 2018 financial year, artnet achieved record revenue of $21.6 million.
The Quarterly Interim Statement for the First Quarter of 2019 is available at artnet.com/investor-relations/quarterly-reports.
For more information, please contact ir@artnet.com
About artnet
artnet is the leading resource for buying, selling, and researching art online. Founded in 1989, artnet's suite of industry-leading products has revolutionized the way people collect art today. The Price Database contains more than 12.5 million auction results from more than 1,800 auction houses dating back to 1985, providing an unparalleled level of transparency to the art market. The Gallery Network platform connects leading galleries with collectors from around the world, offering the most comprehensive overview of artworks for sale. artnet Auctions was the first dedicated online marketplace for fine art, providing a seamless and efficient collecting experience for both buyers and sellers. artnet News covers the events, trends, and people shaping the global art market with up-to-the-minute analysis and expert commentary.
artnet AG is listed in the Prime Standard of the Frankfurt Stock Exchange, the segment with the highest transparency standards.
ISIN: DE000A1K0375
LEI: 391200SHGPEDTRIC0X31
SOURCE: artnet AG
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