artnet AG - Earnings Release 2015

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Media | 11 April 2016 07:00

artnet AG publishes its 2015 Annual Report

DGAP-Media / 2016-04-11 / 07:00

artnet AG publishes its 2015 Annual Report

Financial Result Positive

Highest Revenue in the Company’s History

artnet News Boosts Advertising Revenues

Price Database Exceeds 10 Million Lots

Berlin/New York, April 11, 2016 – artnet AG published its 2015 Annual Report last Friday, announcing that it has achieved the highest revenue in the Company’s history. Compared to 2014, revenue increased by 24.3% to 17.3 million EUR, and by 3.9% to 19.2 million USD. In addition to a strong growth of advertising revenue, the fluctuations in the euro-US dollar exchange rate had a significant influence on the Company’s net profit, resulting in an increased revenue in euros and a decreased revenue in US dollars.

The result was positive, achieving a profit of 0.64 million EUR (0.71 million USD), exceeding the predictions of 0.1-0.4 EUR million (0.1-0.5 million USD) by far, thanks in part to a successful effort in reducing costs.

Revenue from artnet Auctions increased by 10.3% in euros as a result of exchange rate changes, while simultaneously decreasing by 7.8% in US dollars. Compared to the previous year, the number of lots sold increased by 12.7%, while the overall revenue achieved per auction specialist also increased. The public’s growing acceptance of online art auctions was demonstrated by a 120% increase in new registrations, a higher number of lots offered, and an improved sell-through rate. With a combination of a larger team of specialists, an improved efficiency, a focus on high-value lots, artnet intends to grow revenue for the Auctions segment.

In 2015, advertising revenue increased by 128.4% in euros (91.0% in US dollars) as compared to the previous year. This remarkable achievement was largely thanks to the success of artnet News. The launch of the news platform two years ago represented an entrepreneurial challenge for the Company, as it was the second product, after artnet Auctions, to be funded solely from our own resources. It quickly became the most read and influential art news platform in the world, with visits in 2015 almost doubling as compared to the previous year. Due to a one-third increase of pageviews on all of artnet’s sites, the Sales Team was able increase their sales of advertising banners to both art world businesses and luxury brands.

Meanwhile, revenue from Price Database subscriptions increased by 15.8% in euros and decreased slightly by 3.2% in US dollars, though were it not for currency exchange rate effects, revenue in US dollars would have been positive as well. The number of auction results in the Price Database exceeded 10 million in 2015, continuing its role as the most comprehensive database of its kind. Every lot is catalogued, translated, and edited by our team of multilingual specialists, ensuring its unrivaled quality that is trusted by auction houses, galleries, and collectors worldwide. Over the course of the past year, artnet emphasized yearly contracts over short-term subscriptions.

Despite growing competition, revenue from the Galleries segment remained stable, achieving an overall increase of 5.8% in US dollars. Revenue from the Gallery Network increased by 9.2% in euros, yet decreased by 8.6% in US dollars. The overall positive revenue of the segment was achieved through an increase of sales of advertising space. Moreover, Auction House Partnerships was successful with a 17.0% overall revenue increase in US dollars.

In the lawsuit of a French photographer concerning his claim of copyright violation, the

French Court of Cassation has ruled in favor of the photographer on a procedural aspect, after artnet had filed an appeal (case number J 15-18.675). In the previous level of jurisdiction, the Paris Court of Appeal had ordered artnet AG, artnet France Sarl, and Artnet Worldwide Corporation to pay approximately 0.76 million EUR to the photographer, holding all three jointly and severally liable. Currently, the company is carefully evaluating all options to prevent the enforcement of this ruling in Germany and the United States.

In the 2016 fiscal year, artnet aims to increase artnet News’ pageviews and intensify advertising sales. Along with an enlarged the artnet Auctions team, artnet will focus on improving the Gallery Network to increase inquiries for client artworks. By expanding site content, artnet will become an even more attractive source for art research, enriching the experience of its 2.1 million monthly visitors. Additionally, its products will become known to wider audience through this, helping to expand its position in the global art market.

The 2015 Financial Report is available at http://www.artnet.com/investor-relations/annual-reports

For more information, please contact [email protected]

End of Media Release

Issuer: artnet AG

Key word(s): Enterprise

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Language:	English
Company:	artnet AG
	Oranienstraße 164
	10969 Berlin
	Germany
Phone:	+49 (0)30 20 91 78 -0
Fax:	+49 (0)30 20 91 78 -29
E-mail:	[email protected]
Internet:	www.artnet.de
ISIN:	DE000A1K0375
WKN:	A1K037
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart