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artnet AG — Interim / Quarterly Report 2013
Aug 5, 2013
37_10-q_2013-08-05_33f9305a-70c8-4959-8a9a-640eccf35ef7.pdf
Interim / Quarterly Report
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Interim Group Management Report Six Month Report 2013
Table of Contents
| 3 | artnet AG Interim Group Management Report Six Month Report 2013 |
|---|---|
| 9 | Reponsibility Statement |
| 10 | artnet AG Consolidated Balance Sheet |
- 11 artnet AG Condensed Interim Consolidated Income Statement
- 12 artnet AG Statement of Changes in Consolidated Equity (USD)
- 12 artnet AG Statement of Changes in Consolidated Equity (EUR)
- 13 artnet AG Consolidated Cash Flow Statement
- 14 Notes to the Interim Consolidated Financial Statements
- 20 Authorities, Offices Investor Relations, Information on artnet Stock
artnet AG
Interim Group Management Report For the Six Months Ended June 30, 2013
Business Development
Overview of the Business Development for the Six Months Ended June 30, 2013
During the six months ended June 30, 2013, the Group's revenue decreased by 6.3%, from 7,009,000 EUR in 2012 to 6,565,000 EUR. In US dollars, the revenue decreased by 5.2%, from 9,093,000 USD to 8,619,000 USD.
Revenue from artnet Auctions has increased by 6% when compared to the previous quarter, due to the successful implementation of targeted auctions in the second quarter of 2013. However, the sales revenue decreased in euros by approximately 20% from the previous year by 294,000 EUR (365,000 USD). The implementation of a listing fee for lowerpriced lots, and the implementation of a new commission model, will help to raise the quality of the artworks offered on our auction platform in the future, and will also help to increase the attainable average prices. There may be a decline in the number of lots offered, but we expect an increase in commission revenues and profitability of artnet Auctions. The artnet Auctions team will continue targeted auctions to achieve an even broader clientele of art buyers and sellers.
Revenue from artnet Galleries in the second quarter of 2013 increased by approximately 5% compared to the first quarter. However, the revenue in the first six months totaled to 2,439,000 EUR (3,202,000 USD), which is 42,000 EUR (17,000 USD) below that of the previous year. The new price model and the adjustment of service packages helped prevent the decline of gallery memberships. Ongoing product improvements, as well the development of new products, such as artnet Auction House Partnerships, have produced a positive market response.
The artnet Price Database revenue remained stable from the previous year with a slight decrease in revenue by 39,000 EUR (12,000 USD), or 1.6% (0.4% in US dollars).
In comparison to the first quarter of 2013, the revenue of artnet Advertising in the second quarter increased by 12.4%. Compared to the previous year, the revenue decreased in the first six months of 2013 by 69,000 EUR (80,000 USD), or 11.2% (10.1% in US dollars). In the second quarter of 2013, the effects of the implemented measures of the reorganization have been positive. In the coming months, these positive developments are expected to continue.
Results of Operations, Financial Position, and Net Assets
Result of Operations
The results from continued operations increased by 467,000 EUR (607,000 USD), from -436,000 EUR (-566,000 USD) in the same period of the previous year, to 31,000 EUR (41,000 USD). The increase in operating results was achieved, despite declining revenues, by cost savings from the reorganization that started in 2012. The cost of sales for online auctions, client services, and production have been reduced by 282,000 EUR (320,000 USD). General administration expenses from the previous year were influenced by additional costs needed for the relocation to the new office. The expenses are 210,000 EUR (245,000 USD), less than those of the previous year. Expenses for product development could have been decreased by 395,000 EUR (498,000 USD), but the expenses for sales and marketing increased by 41,000 EUR (68,000 USD) from the previous year.
In the coming months, marketing activities should contribute to the increase in revenue, which will become visible in the in the latter half of 2013.
The consolidated result of the first six months of 2013, including discontinued operations, increased by 1,094,000 EUR (1,418,000 USD), from -1,144,000 EUR (-1,485,000 USD) in the previous year, to -51,000 EUR (-67,000 USD). The consolidated result of the first six months of 2012 was affected by the results of the discontinued operations in the amount of -628,000 EUR (-815,000 USD).
Currency Conversion
Currency conversion in the consolidated statement of comprehensive income is based on the average exchange rate for the period from January 1 to June 30, 2013 and 2012, respectively. For the first six months of 2013, the average rate was 0.7616 euros/US dollars, compared to 0.771 euros/US dollars for the first six months of 2012. Currency conversion for the balance sheet is based on the exchange rate at the end of the period. As of June 30, 2013, the rate was 0.7685 euros/US dollars, compared to 0.757 euros/US dollars on December 31, 2012, representing a 1.5% increase.
artnet is subject to exchange rate fluctuations since it invoices in euros, US dollars, and British pounds, but conducts most of its business in the United States. The Group attempts to reduce its exposure to exchange rate differences by billing European customers in euros and British customers in British pounds, and by paying vendors in the same currency with these cash funds.
Financial Position
The Group's operating cash flow as of June 30, 2013 was 276,000 EUR (363,000 USD) in comparison to the negative cash flow as of March 31, 2013. Operating cash flow from continued operations as of June 30, 2012 was 124,000 EUR (163,000 USD). Considering the discontinued operations in 2012, the cash flow from operating activities has increased by 495,000 EUR (644,000 USD), when compared to the previous year.
Group investing cash flow in the first six months of 2013 was -255,000 EUR (-335,000 USD), as compared to -562,000 EUR (-729,000 USD) in the first six months of 2012. Last year's investing cash flow was affected by investments made for the purchase of office furniture for the relocation to the new office in New York, as well as by the costs of product development for artnet Analytics. Investments made in the first six months of 2013 are for external development costs due to the redesign of the company's website.
The cash flow for financing activities was 418,000 EUR (533,000 USD) in the first six months of 2013, compared to -64,000 EUR (-83,000 USD) in the previous year. This cash inflow was essentially generated by a loan granted by the main shareholder in March 2013, in the amount of 500,000 EUR (641,000 USD). In contrast, there are cash outflows for the repayment of liabilities from finance lease agreements made between 2009 and 2013.
In total, the cash balance increased from 753,000 EUR (995,000 USD) as of December 31, 2012, to 1,180,000 EUR (1,536,000 USD) as of June 30, 2013. The increase in the amount of 428,000 EUR (541,000 USD) is a result of the loan granted in March 2013 by the main shareholder, in addition to the positive cash flow from operating activities, while the cash flow from investing activities was shown to be negative.
The cash investment policy for the Group is conservative and based on short-term investments. This policy allows all cash to be liquid and available. Based on the average outstanding shares of 5,552,986, liquidity per share was 0.21 EUR (0.28 USD) on June 30, 2013, compared to 0.14 EUR (0.18 USD) on December 31, 2012.
Asset Position
The balance sheet total was 6,351,000 EUR (8,264,000 USD) on June 30, 2013, compared to 6,009,000 EUR (7,944,000 USD) on December 31, 2012, representing an increase in euros of 5.7% (4.0% in US dollars).
Trade accounts receivable decreased, compared to December 31, 2012, by 144,000 EUR (207,000 USD) to 779,000 EUR (1,014,000 USD).
Fixed assets increased by 156,000 EUR (160,000 USD) to 2,200,000 EUR (2,863,000 USD). The scheduled depreciation and amortization was offset by development costs for the redesign of the website and purchase of necessary software renewals.
Total current liabilities increased by 326,000 EUR (353,000 USD), from 3,072,000 EUR (4,060,000 USD) as of December 31, 2012, to 3,399,000 EUR (4,413,000 USD) as of June 30, 2013. This increase is due to the necessary allocation of the loan granted on March 31, 2013 from the main shareholder, under current liabilities as it will conclude on May 1, 2014. Without this loan, the short-term liabilities would have decreased by 178,000 EUR (294,000 USD). The cause of the decrease was mainly due to the repayment of deferred liabilities as of December 31, 2012, and of accounts payable. Due to new lease contracts for software licenses, the decrease in current liabilities has been less substantial.
Long-term liabilities includes finance lease obligations and office rent amortization, which represents the rent-free period of the lease contact for the new office.
The Group's consolidated equity was 2,377,000 EUR (3,103,000 USD) on June 30, 2013, compared to 2,368,000 EUR (3,131,000 USD) on December 31, 2012.
The artnet Price Database Fine Art and Design constitutes an intangible asset that has been developed by gathering auction information over the last 25 years. This valuable asset to the Group has not been attributed full earning recognition on the balance sheet due to accounting rules. Balance sheet assets would be substantially increased if this recognition were allowed by law.
Employees
On June 30, 2013, there were 107 full-time employees, as compared with 122 in the first six months of 2012. Additionally, the Group employed 8 part-time employees as of June 30, 2013, as compared to 14 in the same period last year, and 9 sales and other consultants, compared to 11 as of June 30, 2012.
General Information and Business Activities
artnet AG is a holding company listed on the "Geregelten Markt" in the Prime Standard segment at the Frankfurt Stock Exchange. artnet AG's principal holding is its wholly owned subsidiary, Artnet Worldwide Corporation, a New York corporation founded
in 1989. artnet AG ("artnet" or "the Company") and Artnet Worldwide Corporation ("Artnet Corp.," collectively "the artnet Group" or "the Group") operate under the trade name "artnet."
Artnet Corp. has two wholly-owned subsidiaries: artnet UK and artnet France sarl. artnet UK Ltd. provides sales and client support in the United Kingdom. As part of the restructuring, the closing of the Paris office was resolved in June 2012.
With a six month average in 2013 of 1.3 million unique monthly visitors on its three domains, artnet.com, artnet.de, and artnet. fr, artnet offers the world's most comprehensive art market overview, enabling collectors and art professionals to better navigate the art market by providing timely information about artwork, artists, galleries, price developments, exhibitions, news, and reviews.
As of June 30, 2013, artnet Galleries represents 1,700 of the world's most prestigious art galleries and auction houses from over 55 countries. Members of artnet Galleries are indexed by specialty and location, and represent an aggregate 170,000 works in inventory from 32,000 artists. In addition to all forms of Contemporary, Modern, and Fine Art, artnet Galleries also offers Decorative Art and Design objects from the 1st century BC to the present. With artnet Auction House Partnerships, auction houses have the flexibility to post complete or partial sales on artnet, with the option of linking every lot on artnet back to the same lot in their own online catalogue. All lots are linked to artnet's upcoming auctions calendar and ranked high in artnet and Google search results. artnet Auction House Partnerships provides reporting and direct traffic from artnet to the auction house website.
The artnet Price Database is an updated archive of over 8 million illustrated auction records from over 1,400 of the world's top auction houses, giving price transparency to an otherwise secretive market. Subscribers to the artnet Price Database Fine Art and Design and the artnet Price Database Decorative Art receive access to current results as well as auction results dating back to 1985, and with that, the most up-to-date and impartial appraisal value for artworks they would like to buy or sell. The artnet Price Database is widely subscribed to by appraisers, dealers, auctioneers, and financiers, as well as by private and
government institutions, including the IRS and the FBI. Most importantly, it provides an illustrated "blue book" for private collectors with which to appraise the works they own, and measure opportunities at upcoming auctions or on the dealer market. Dealers and auctioneers also use comparable sales from the artnet Price Database to support the valuation and sale of important works of art.
artnet Market Alert, which is a derivative of the artnet Price Database, informs subscribers by email when artworks by artists they selected come up at auction, or when the works are offered in artnet Galleries or on artnet Auctions.
artnet Analytics, which was launched in May 2012, is the first art index that allows one to value the market performance of artists, customer-specific groups of artworks, and art categories such as Asian Art or Modern Art. The market performance can also be compared to financial indices such as the Dow Jones or S&P 500. This product for analyzing the art market provides its users with reports for over 800 artists and around 46,000 groups of comparable artworks.
With artnet Auctions, artnet has become a business-to-customer transaction platform with an integrated information resource. The main advantages for buyers and sellers on artnet Auctions are the attractive pricing and fast turnaround, which can be finalized in a few weeks, compared to the six months or a year required by brick-and-mortar art auctioneers. artnet Auctions routinely sees works by blue-chip Modern and Contemporary artists sell in the five- and six-figure range.
artnet Monographs is an online art library developed in close collaboration with artists, estates, foundations, and galleries. This growing resource of Modern and Contemporary artists' monographs features comprehensive artwork selections and 148 biographies. artnet Monographs can be viewed free of charge on the artnet website.
Subsequent Events
As of July 31, 2013 Prof. Dr. Walter Rust will resign as Deputy Chairman from the Supervisory Board of artnet AG. He will be officially replaced by Piroschka Dossi, who will be appointed as a new member of the Supervisory Board, as of August 1, 2013.
There were no more reportable events of significance after the balance sheet date that had a material impact on the artnet Group's financial position or on the operating results.
Risks of the Future Development
artnet holds the view that the risk structure has not changed since December 31, 2012.
Outlook
We are happy to report that the second quarter of 2013 marks one more successful step towards our goal of bringing the company back to healthy profitability.
About one year into our turnaround plan, each core area of our business is showing strengths, and is well-positioned to grow again and expand on its number-one position in the market. Widely regarded as the gold standard in the industry, artnet Price Database continues to grow. In the past six months, we have added an additional 164 auction houses to our records, for a total of over 1,400 auction houses. While the number of subscribers is down in the short-term as a result of price increases, the attrition rate is lower than expected and revenue is stable—in 2012, it passed the five million euros mark for the first time, the highest ever. The Price Database is the best resource for absolute confidence in numbers. We will continue to develop this product and safeguard its integrity.
The reliability and quality of our data will become even greater assets as we begin to expand in China, where the market currently lacks transparency.
artnet Analytics is facing the same challenges as the Price Database once did, before it was widely adopted. Awareness of this unique and complex product is steadily growing among its target audience, with more and more collectors and investors realizing its potential value as a visual diagnostic tool for understanding the market.
We are happy that the number of members in our gallery network has stabilized and is now slowly increasing again. Many of our gallery clients faced tremendous difficulties as a result of the financial crisis, and our revenue suffered in consequence. This was compounded by an increase in the number of new competitors offering alternative choices, which they promoted with significant marketing budgets to lure some of our customers away. We are seeing some of these customers return to artnet once their enthusiasm for newer alternatives faded. Despite the reduction in the number of member galleries, we still managed to keep our gallery revenue steady.
Advertising revenue is down from the same period last year by about 10%, but is also trending up, with an increase of 12% in the second quarter of this year versus the first. We have created more advertising platforms to generate awareness and leads for galleries and luxury brands, and the size of our global audience remains vastly larger than that of any of our competitors. For instance, our new gallery-focused monthly newsletter is sent to over 250,000 recipients, generating interest from galleries and collectors.
Our auctions are recovering from a temporary slump in the first quarter, as we reengineered our sales to expand the number of targeted auctions. While revenue is down 20% from the same period last year, we are seeing a positive trend quarter to quarter. In the second quarter, we sold over 500 lots, with an average value of US\$8,000, to a total of over 350 buyers from 38 different countries. Compared to the first quarter, the number of lots sold in the second quarter increased by nearly 8.5%, and total revenue increased by about 6%.
Top artnet Auctions categories include Pop Art, Urban Art, and Asian Contemporary Art. Among the standout sales in the second quarter of 2013 were works by Modern and Contemporary masters, including:
- • Alberto Giacometti, Tête de Femme (1947)—artnet's single highest-selling work in Q2 2013—which sold for US\$57,500
- • Jasper Johns, Flag (Moratorium) (1969), which sold for US\$18,400
• Kenneth Noland, Tomorrow (1976), which sold for US\$40,250 Last year, we were dependent on a small number of active buyers who generated incremental revenue.
In the past six months alone, our customer base has become broader and more diverse than it has ever been, with 906 consigners and 593 buyers coming from 44 countries. In order to steer our business towards higher-value, more profitable works, we have recently implemented important changes to our fee structure in order to incentivize consignments of lots worth over US\$10,000, abolishing the seller's fee altogether for these higher-value lots, which is an industry first and a competitive advantage that we strongly believe will help us expand in the
coming months. We have also put in place a US\$150 listing fee for lower-value lots, which will address the challenge of selling these lots profitably. We expect these changes to have a meaningful and positive impact on revenue moving forward. Most importantly, we are excited to announce that, despite stable revenue across the board, we are now clearly on track to be profitable again this year. We generated a profit of 28,000 EUR (US\$36,000) in the second quarter, which was almost enough to make us profitable for the year to date. Coming on the heels of a loss of -78,000 EUR (US\$103,000) in the first quarter, our net result for the first half of the year is a limited loss of 51,000 EUR (US\$67,000). This is obviously a very significant improvement over last year, and we expect to remain on this positive course, which will allow the company to turn a profit by the end of fiscal 2013.
Looking ahead, we are very excited by the progress being made with respect to the launch of our redesigned website, slated for the end of the year. While the changes we have gone through over the past year have been profound, many of them have not been visible to our customers. The redesign of the company website will be the most tangible public manifestation of our fresh start. The revamped site will offer optimized informational organization, enhanced search functionality, and an aesthetic that is at the forefront of the latest trends in website design. This redesign will do more than provide an interface that is more pleasing to the eye. It is geared toward making it easier for the millions of visitors we get each month to find and discover art they love. It will increase opportunities for member galleries and artnet Auctions to attract and connect with collectors from around the world, generating more revenue. It will also rejuvenate our brand, projecting a more cutting edge and sophisticated image of who we are and what we offer.
Over the past four years, our company and its management team have had to wrestle with a series of difficult challenges. I am pleased that we managed to navigate these obstacles successfully. And yet, while we are making tremendous progress in terms of profitability, we realize that we have not yet reached all of our goals. Barring any unexpected developments, I believe we have turned the corner, and that artnet is back on track.
Many industry players try to compete with artnet, but with limited success. We have a business model that is unique in the industry, and would be almost impossible to replicate. The existence of three such strong products, artnet Price Database, artnet Galleries, and artnet Auctions, gives the company an extraordinary competitive advantage, with each element of the business reinforcing the others. Online sales of art are predicted to grow at a rate of almost 20% per year for the next few years. Our number one position in each of these business areas means that we are better placed than anyone else in this category to capitalize on this growth. While there are many companies making vague claims, we have actual, public, and audited sales that put us at the top of our category by a significant margin. Five years ago, we launched our online auctions platform. Last year, we launched artnet Analytics. Annual direct costs reached approximately US\$2 million. We would be profitable by the same amount if we did not have to carry this cost; instead, we chose to invest in expanding our portfolio of services and building a stronger future.
Our team is united behind our strategy. With a return to profitability this quarter, we are confident that we have successfully risen to our greatest challenges, that the future for artnet is rich in opportunity, and that we will continue to live up to our long history of pioneering and market leadership.
Berlin, August 5, 2013
Jacob Pabst Chairman and CEO of artnet AG
Responsibility Statement
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group for the remaining month of the financial year.
Berlin, August 5, 2013
Jacob Pabst Chairman and CEO of artnet AG
artnet AG Consolidated Balance Sheet
For the Six Months Ended June 30, 2013
| 6/30/13 USD |
12/31/12 USD |
6/30/13 EUR |
12/31/12 EUR |
|
|---|---|---|---|---|
| ASSETS | ||||
| CURRENT ASSETS | ||||
| Cash and cash equivalents | 1,535,707 | 994,773 | 1,180,191 | 752,546 |
| Trade receivables | 1,013,983 | 1,221,058 | 779,246 | 923,730 |
| Other current assets | 557,487 | 737,968 | 428,429 | 558,273 |
| Total current assets | 3,107,177 | 2,953,799 | 2,387,866 | 2,234,549 |
| NON-CURRENT ASSETS | ||||
| Property, plants, and equipment | 1,187,168 | 1,374,634 | 912,339 | 1,039,911 |
| Intangible assets | 1,675,505 | 1,327,877 | 1,287,626 | 1,004,539 |
| Security deposit | 386,472 | 379,921 | 297,004 | 287,410 |
| Deferred tax assets | 1,907,577 | 1,907,577 | 1,465,973 | 1,443,082 |
| Total non-current assets | 5,156,722 | 4,990,009 | 3,962,942 | 3,774,942 |
| TOTAL ASSETS | 8,263,899 | 7,943,808 | 6,350,808 | 6,009,491 |
| EQUITY AND LIABILITIES | ||||
| CURRENT LIABILITIES | ||||
| Trade payables | 682,673 | 844,777 | 524,634 | 639,074 |
| Accrued expenses and other liabilities | 691,229 | 986,751 | 531,209 | 746,477 |
| Provisions | 164,770 | 170,041 | 126,626 | 128,636 |
| Liabilities from finance leases | 314,896 | 297,649 | 241,998 | 225,171 |
| Liabilities from loans | 647,357 | - | 505,000 | - |
| Deferred revenue | 1,912,142 | 1,760,941 | 1,469,481 | 1,332,152 |
| Total Current Liabilities | 4,413,067 | 4,060,159 | 3,398,948 | 3,071,510 |
| NON-CURRENT LIABILITIES | ||||
| Office Rent Amortization | 352,862 | 267,896 | 271,174 | 202,663 |
| Liabilities from finance leases | 395,333 | 484,933 | 303,813 | 366,852 |
| Total non-current liabilities | 748,195 | 752,829 | 574,987 | 569,515 |
| TOTAL LIABILITIES | 5,161,262 | 4,812,988 | 3,973,935 | 3,641,025 |
| SHAREHOLDERS' EQUITY | ||||
| Subscribed capital | 5,941,512 | 5,941,512 | 5,631,067 | 5,631,067 |
| Treasury stock | (269,241) | (269,241) | (264,425) | (264,425) |
| Retained earnings | 52,248,851 | 52,240,459 | 50,869,264 | 50,862,873 |
| Loss carry-forward | (54,925,977) | (51,784,190) | (53,909,439) | (51,482,744) |
| Consolidated net income | (66,672) | (3,141,787) | (50,777) | (2,426,695) |
| Foreign currency translation | 174,164 | 144,067 | 101,183 | 48,390 |
| TOTAL SHAREHOLDERS' EQUITY | 3,102,637 | 3,130,820 | 2,376,873 | 2,368,466 |
| TOTAL LIABILITIES AND TOTAL SHAREHOLDERS' EQUITY | 8,263,899 | 7,943,808 | 6,350,808 | 6,009,491 |
artnet AG Condensed Interim Consolidated Income Statement
For the Six Months Ended June 30, 2013 and the Second Quarter 2013
| 1/1–6/30/13 USD |
1/1–6/30/12 Corrected USD |
1/1–6/30/13 EUR |
1/1–6/30/12 Corrected EUR |
1/4–6/30/13 USD |
1/4–6/30/12 Corrected USD |
1/4–6/30/13 EUR |
1/4–6/30/12 Corrected EUR |
|
|---|---|---|---|---|---|---|---|---|
| Revenue | ||||||||
| artnet Galleries | 3,202,192 | 3,218,967 | 2,438,789 | 2,481,180 | 1,636,714 | 1,596,853 | 1,253,252 | 1,243,507 |
| artnet Price Database | 3,265,440 | 3,277,287 | 2,486,959 | 2,526,133 | 1,593,078 | 1,641,553 | 1,220,479 | 1,278,068 |
| artnet Advertising | 712,341 | 792,763 | 542,519 | 611,062 | 376,896 | 396,946 | 288,487 | 309,054 |
| artnet Auctions | 1,439,477 | 1,804,021 | 1,096,306 | 1,390,539 | 741,679 | 841,325 | 567,863 | 656,002 |
| Total revenue | 8,619,449 | 9,093,038 | 6,564,573 | 7,008,914 | 4,348,366 | 4,476,676 | 3,330,080 | 3,486,630 |
| Cost of sales | 3,828,422 | 4,148,053 | 2,915,726 | 3,197,319 | 1,907,418 | 2,190,517 | 1,460,950 | 1,703,719 |
| Gross profit | 4,791,027 | 4,944,985 | 3,648,847 | 3,811,595 | 2,440,948 | 2,286,159 | 1,869,130 | 1,782,911 |
| Other operating expenses | ||||||||
| Sales and marketing | 1,191,136 | 1,123,221 | 907,169 | 865,779 | 581,053 | 604,384 | 445,153 | 469,906 |
| General and administrative | 2,361,492 | 2,606,036 | 1,798,512 | 2,008,733 | 1,182,702 | 1,462,875 | 905,814 | 1,136,501 |
| Product development | 1,188,722 | 1,686,314 | 905,331 | 1,299,811 | 570,441 | 860,656 | 437,107 | 669,834 |
| Remuneration from stock options |
8,392 | 94,974 | 6,391 | 73,206 | 3,754 | 41,358 | 2,879 | 32,297 |
| Total other operating expenses |
4,749,742 | 5,510,545 | 3,617,404 | 4,247,529 | 2,337,950 | 2,969,273 | 1,790,954 | 2,308,538 |
| Operating income | 41,285 | (565,560) | 31,442 | (435,934) | 102,998 | (683,114) | 78,176 | (525,627) |
| Interest expenses | (25,521) | (18,393) | (19,437) | (14,177) | (16,922) | (11,824) | (12,925) | (9,165) |
| Interest income | 120 | - | 91 | - | 40 | - | 30 | - |
| Other {expenses}/income | (94,210) | (74,384) | (71,750) | (57,335) | (64,211) | (165,555) | (49,032) | (126,898) |
| Earnings before taxes | (78,325) | (658,337) | (59,652) | (507,446) | 21,906 | 860,492 | 16,251 | (661,689) |
| Income taxes | 11,653 | (11,189) | 8,875 | (8,625) | 14,649 | (38,975) | 11,144 | (29,825) |
| Continued Operations | (66,672) | (669,526) | (50,777) | (516,071) | 36,555 | (899,467) | 27,395 | (691,514) |
| Discontinued Operations | - | 815,208 | - | (628,362) | - | (473,622) | - | (367,732) |
| Group Profit or loss | (66,672) | (1,484,734) | (50,777) | (1,144,433) | 36,555 | (1,373,089) | 27,395 | (1,059,246) |
| Other earnings | ||||||||
| Differences from foreign currency translation |
30,097 | 45,081 | 52,793 | 142,529 | 57,908 | 120,008 | 3,307 | 336,403 |
| Total income for the period | (36,575) | (1,439,653) | 2,016 | (1,001,904) | 94,463 | (1,253,081) | 30,702 | (722,843) |
| Earnings per share | ||||||||
| Basic | (0.01) | (0.27) | (0.01) | (0.21) | 0.01 | (0.25) | - | (0.19) |
| Diluted | (0.01) | (0.27) | (0.01) | (0.21) | 0.01 | (0.25) | - | (0.19) |
| Earnings per share from continued operations |
||||||||
| Basic | (0.01) | (0.12) | (0.01) | (0.09) | 0.01 | (0.16) | - | (0.12) |
| Diluted | (0.01) | (0.12) | (0.01) | (0.09) | 0.01 | (0.16) | - | (0.12) |
| Earnings per share from disccontinued operations |
||||||||
| Basic | - | (0.15) | - | (0.11) | - | (0.09) | - | (0.07) |
| Diluted | - | (0.15) | - | (0.11) | - | (0.09) | - | (0.07) |
| Weighted average shares | ||||||||
| Basic | 5,552,986 | 5,552,986 | 5,552,986 | 5,552,986 | 5,552,986 | 5,552,986 | 5,552,986 | 5,552,986 |
| Diluted | 5,552,986 | 5,552,986 | 5,552,986 | 5,552,986 | 5,552,986 | 5,552,986 | 5,552,986 | 5,552,986 |
artnet AG Statement Of Changes In Consolidated Equity (USD)
For the Six Months Ended June 30, 2013
| Subscribed capital | |||||||
|---|---|---|---|---|---|---|---|
| Issued shares | Amount | Treasury stock | Retained earnings |
Loss carry-forward |
Foreign currency translation |
Total | |
| Balance as of 12/31/2011 | 5,631,067 | 5,941,512 | (269,241) | 52,061,314 | (51,784,190) | 205,008 | 6,154,403 |
| Total income for the period | - | - | - | - | (1,484,734) | 45,081 | (1,439,653) |
| Remuneration from stock options | - | - | - | 94,974 | - | - | 94,974 |
| Balance as of 6/30/2012 | 5,631,067 | 5,941,512 | (269,241) | 52,156,288 | (53,268,923) | 250,089 | 4,809,724 |
| Balance as of 12/31/2012 | 5,631,067 | 5,941,512 | (269,241) | 52,240,459 | (54,925,977) | 144,067 | 3,130,820 |
| Total income for the period | - | - | - | - | (66,672) | 30,097 | (36,575) |
| Remuneration from stock options | - | - | - | 8,392 | - | - | 8,392 |
| Balance as of 6/30/2013 | 5,631,067 | 5,941,512 | (269,241) | 52,248,851 | (54,992,649) | 174,164 | 3,102,637 |
artnet AG Statement Of Changes In Consolidated Equity (EUR)
For the Six Months Ended June 30, 2013
| Subscribed capital | |||||||
|---|---|---|---|---|---|---|---|
| Issued shares | Amount | Treasury stock | Retained earnings |
Loss carry-forward |
Foreign currency translation |
Total | |
| Balance as of 12/31/2011 | 5,631,067 | 5,631,067 | (264,425) | 50,723,480 | (51,482,744) | 145,052 | 4,752,430 |
| Total income for the period | - | - | - | - | (1,144,433) | 142,529 | (1,001,904) |
| Remuneration from stock options | - | - | - | 73,206 | - | - | 73,206 |
| Balance as of 6/30/2012 | 5,631,067 | 5,631,067 | (264,425) | 50,796,686 | (52,627,177) | 287,581 | 3,823,732 |
| Balance as of 12/31/2012 | 5,631,067 | 5,631,067 | (264,425) | 50,862,873 | (53,909,439) | 48,390 | 2,368,466 |
| Total income for the period | - | - | - | - | (50,777) | 52,793 | 2,016 |
| Remuneration from stock options | - | - | - | 6,391 | - | - | 6,391 |
| Balance as of 6/30/2013 | 5,631,067 | 5,631,067 | (264,425) | 50,869,264 | (53,960,216) | 101,184 | 2,376,873 |
artnet AG Consolidated Cash Flow Statement
For the Six Months Ended June 30, 2013
| 6/30/13 USD |
6/30/12 Corrected USD |
6/30/13 EUR |
6/30/12 Corrected EUR |
|
|---|---|---|---|---|
| CASH FLOW FROM OPERATING ACTIVITIES | ||||
| Group profit or loss | (66,672) | (1,484,734) | (50,777) | (1,144,433) |
| Profit/(loss) from continued operations | (66,672) | (669,526) | (50,777) | (516,071) |
| Profit/(loss) from discontinued operations | - | (815,208) | - | (628,362) |
| Adjustments to reconcile net profit to net cash provided by operating activities: | ||||
| Amortization/depreciation | 266,331 | 296,860 | 202,837 | 228,820 |
| Impairment/write-offs for receivables | 157,808 | 110,287 | 120,184 | 85,009 |
| Non-cash compensation from stock-options | 8,392 | 94,974 | 6,391 | 73,206 |
| Other non-cash transactions | 610 | 55,863 | 465 | 41,964 |
| Changes in operating assets and liabilites: | ||||
| Trade receivables | 49,270 | (355,113) | 37,524 | (273,721) |
| Other current assets | 180,481 | (160,535) | 137,454 | (123,741) |
| Security deposits | (6,551) | 198,312 | (4,989) | 152,859 |
| Trade payables | (162,104) | (108,088) | (123,458) | (83,315) |
| Provisions | (5,271) | - | (4,014) | - |
| Other liabilities and tax liabilities | (210,556) | 1,088,851 | (160,359) | 839,286 |
| Deferred revenue | 151,201 | (17,890) | 115,155 | (14,223) |
| Total adjustments | 429,608 | 1,203,521 | 327,189 | 926,144 |
| CASH FLOW FROM OPERATING ACTIVITIES | 362,936 | (281,213) | 276,412 | (218,289) |
| Proceeds from/used in continued operations | 362,936 | 163,406 | 276,412 | 124,423 |
| Proceeds from/used in discontinued operations | - | (442,619) | - | (342,712) |
| CASH FLOW FROM INVESTING ACTIVITIES | ||||
| Investments in property, plant and equipment | (3,847) | (475,135) | (2,930) | (366,234) |
| Investments in intangible assets | (330,827) | (253,398) | (251,958) | (195,319) |
| NET CASH USED IN INVESTING ACTIVITIES | (334,674) | (728,533) | (254,888) | (561,553) |
| Proceeds from/used in continued operations | (334,674) | (728,533) | (254,888) | (561,553) |
| Proceeds from/used in discontinued operations | - | - | - | - |
| CASH FLOW FROM FINANCING ACTIVITIES | ||||
| Received loan | 647,357 | - | 505,000 | - |
| Repayment of financial lease | (114,656) | (83,038) | (87,322) | (64,006) |
| NET CASH USED IN FINANCING ACTIVITIES | 532,701 | (83,038) | 417,678 | (64,006) |
| Proceeds from/used in continued operations | 532,701 | (83,038) | 417,678 | (64,006) |
| Proceeds from/used in discontinued operations | - | - | - | - |
| Effects of exchange rate changes on cash | (20,028) | (10,782) | (11,557) | 28,884 |
| CHANGE IN CASH AND CASH EQUIVALENTS | 540,934 | (1,103,566) | 427,645 | (814,964) |
| CASH AND CASH EQUIVALENTS – start of period | 994,773 | 2,735,520 | 752,546 | 2,112,368 |
| CASH AND CASH EQUIVALENTS – end of period | 1,535,707 | 1,631,954 | 1,180,191 | 1,297,404 |
| PAYMENTS INCLUDED IN CASH FLOW FROM OPERATING ACTIVITIES | ||||
| Income tax receipts/(payments) | 11,653 | (11,189) | 8,875 | (8,625) |
| Interest payments | (18,992) | (18,393) | (14,437) | (14,177) |
| Interest receipts | 120 | - | 91 | - |
Notes to the Interim Consolidated Financial Statements for the Six Months Ended June 30, 2013
The following new or revised standards and interpretations became mandatory in fiscal 2013:
Corporate Information
artnet AG (hereinafter referred to as "artnet AG" or "the Company") is a publicly traded corporation headquartered in Berlin, Germany. The address of its registered office is Oranienstraße 164, 10969 Berlin. artnet AG was incorporated under the laws of Germany in 1998.
artnet AG holds 100% of the shares in Artnet Worldwide Corporation ("Artnet Corp."), which is located in New York, United States. Artnet Corp. holds 100% of the shares in artnet UK Limited and artnet France sarl. artnet AG and Artnet Corp., together with Artnet Corp.'s wholly owned subsidiaries, are referred to as "the Group" or "the artnet Group."
The Group's mission is to provide a website to art collectors, galleries, publishers, auction houses, and art enthusiasts, where they can research artists and prices of artworks, and find artworks that are currently available at art galleries and auctions around the world. Additionally, artworks can be sold on artnet Auctions, a web-based auctions platform.
The consolidated financial statements were authorized for issuance by the CEO on August 5, 2013.
Basis of Presentation
These unaudited interim financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) and its interpretations adopted by the International Accounting Standards Board (IASB) for interim financial information effective within the EU. In particular, they correspond to the "Interim Financial Reporting" guidelines of IAS 34. They also comply with the German accounting Standard (DRS) No.16 on interim reporting as well as with §§ 37x, 37w of the Securities Trading Act. These financial statements do not include all of the information and footnotes required by IFRS for complete financial statements for year-end reporting purposes.
| Standard (IFRS) or Interpretation (IFRIC) | Mandatory Application in the EU |
Endorsed by the European Commission |
|
|---|---|---|---|
| IFRS 1* | First-Time Adoption of IFRS – Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters |
January 1, 2013 | December 29, 2012 |
| IFRS 1* | Government Loans | January 1, 2013 | March 5, 2013 |
| IFRS 7* | Financial Instruments: Disclosures— Offsetting of Financial Assets and Liabilities |
January 1, 2013 | December 29, 2012 |
| IFRS 13 | Fair Value Measurement | January 1, 2013 | December 29, 2012 |
| IFRS 20 | Stripping Costs in the Production Phase of a Surface Mine |
January 1, 2013 | December 29, 2012 |
| IAS 12* | Deferred Tax - Recovery of Underlying Assets |
January 1, 2013 | December 29, 2012 |
| IAS 19* | Employee Benefits | January 1, 2012 | June 6, 2012 |
* Amendments (changes to existing standards)
The first-time application of these standards does not have an impact on the presentation of the interim consolidated financial statements in 2013.
The same accounting and valuation methods have been applied to this interim report as were applied to the most recent annual financial statements. A detailed description of the accounting policies is published in the notes to the annual consolidated financial statements 2012.
The management of the Company is convinced that the interim consolidated financial statements include all adjustments of a normal and recurring nature considered necessary for a fair presentation of results for the interim period. Results of the period ended June 30, 2013 are not necessarily indicative of future results.
As of June 30, 2013, the interim financial statements and the interim management report, have not been audited in accordance with § 317 of the German Commercial Code or reviewed by an auditor.
The consolidated financial statements have been prepared on a historical cost basis. The balance sheet date is June 30, 2013.
Adjustment of Prior-Year Figures
The German Financial Reporting Enforcement Panel (DPR) has established that the condensed interim consolidated financial statements were incorrect for artnet AG, Berlin for the period ended June 30, 2012:
As of June 30, 2013, the condensed interim consolidated financial statements have posted a revenue of 229,000 EUR from the continued operations, and a loss of 1,374,000 EUR from discontinued operations. The expense of 232,000 EUR was falsely allocated to the discontinued operations. This expense would have carried on despite the closure of the magazine.
Additionally, as per the definition, the closure of the Paris office does not fulfill the requirements of a Discontinued Operation. If the expenses from the Paris office had been distributed among the business divisions, as they were in fiscal 2011, earnings would have been reduced by an additional 512,000 EUR. The incorrect disclosure of earnings from discontinued operations violates IFRS 5.33 (a).
The previous year's information from the the condensed interim consolidated financial statement and cash flow for artnet AG for the first six months of 2012 was corrected in the condensed interim consolidated financial statement for the first six months of 2013 to reflect the DPR's findings. The revised figures in the charts have been indicated as corrected. All information in this interim statement reflects the modified amounts.
Foreign Currency Translation and Transactions
Amounts mentioned in the interim consolidated financial statements, and notes to the interim consolidated financial statements, are stated in euros (EUR), unless otherwise noted.
The currency of the primary economic environment in which the artnet Group operates is US dollars, which is the functional currency of the operating subsidiary Artnet Corp. Transactions in currencies other than US dollars are recorded at the exchange rates prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Gains and losses from foreign currency transactions are recognized as other income/expenses.
On consolidation, the assets and liabilities of the Group's operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period. The accumulated gains and losses resulting from translation are recorded as a separate component of the Group's equity.
Currency exchange rates significant to the artnet Group are the translation of US dollars to euros and of US dollars to British pounds (GBP). The following exchange rates have been used for the currency translation in the periods presented:
| USD to EUR | USD to GBP | |||
|---|---|---|---|---|
| 6/30/2013 | 12/31/2012 | 6/30/2013 | 12/31/2012 | |
| Current Rate Year End | .7685 | .757 | .6572 | .619 |
| Average Rate for the Year | .7616 | .778 | .6476 | .631 |
Reporting Period
The consolidated financial statements were prepared for the reporting period from January 1 through June 30, 2013. The fiscal year for all Group companies coincides with the calendar year.
Basis of Consolidation and Consolidated Companies
The consolidated financial statements include the legal parent company, artnet AG, its wholly owned subsidiary Artnet Corp., as well as the subsidiaries of this company. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
On February 23, 1999, artnet AG entered into a transaction with Artnet Corp. that was treated as a recapitalization of Artnet Corp., with Artnet Corp. as the acquirer of artnet AG (reverse acquisition). The Company accounted for the business merger of artnet AG and Artnet Corp. as a reverse acquisition in accordance with IFRS 3.
On November 1, 2007, Artnet Corp. established artnet UK Limited, which is a wholly owned subsidiary that acts as a sales agent for Artnet Corp. in the United Kingdom.
On July 3, 2008, Artnet Corp. established artnet France sarl, which is a wholly owned subsidiary of Artnet Corp. As part of its restructuring, artnet resolved to close the Paris offices of artnet France sarl in June 2012. The key French market is now supported from our headquarters in New York.
All significant inter-company transactions, balances, income, and expenses are eliminated.
Share Capital
Conditional Capital - Share Based Payments
The shareholders' meeting on July 15, 2009, conditionally increased the capital stock by 560,000 EUR, through the issue of up to 560,000 new no-par value bearer shares, which can be issued as stock options to members of the Company's Board of Directors, members of the management of affiliated entities, and employees of artnet AG or its affiliated entities (Conditional Capital 2009/I).
No shares have been issued from conditional capital at this point.
Authorized Capital
The shareholders' meeting of artnet AG on July 15, 2009 authorized the Board of Directors, with the approval of the Supervisory Board, to increase the capital stock by up to 2,800,000 EUR before July 14, 2014, through the issue of 2,800,000 new no-par value bearer shares in exchange for cash contributions or contributions in kind (Authorized Capital 2009/I). No shares have been issued from authorizes Capital 2009/I at this point.
Treasury Shares
As of June 30, 2013 and 2012, artnet AG held 78,081 of its own shares, representing 1.4% of common stock.
The Shareholders' Meeting of artnet AG on July 14, 2010, authorized the Board of Directors, with the approval of the Supervisory Board, to acquire its own shares until the end of July 13, 2015, up to a 10% stake in current share capital. At no point may the acquired shares, together with other own shares owned by the company or attributable to the company under Articles 71 et seq. AktG (German Stock Corporation Act), constitute more than 10% of the share capital. The time limit applies only to acquiring—and not holding—the shares.
Related Party Transactions
As of June 30, 2013, financial liabilities of the artnet Group comprises, in addition to the accounts payable and other liabilities, a loan granted by the main shareholder in the amount of 500,000 EUR, repayable on May 1, 2014. Accounts payable contains consulting fees of Galerie Neuendorf AG in the amount of 270,000 EUR. Both parties have agreed to defer and extend the payments until March 31, 2014. These measures serve as collateral to potential temporary liquidity bottleneck, which could result from seasonal changes of cash collections.
As of June 10, 2013 Hans Neuendorf has been appointed to the Supervisory Board to replace Dr. Jochen Gutbrod.
Income Taxes
Income tax expense is recognized in the interim period based on the best estimate of the weighted average annual income tax rate expected for the full financial year. Due to its tax loss carryforward, Artnet Corp. only has to pay the alternative minimum corporation tax.
The Group reviews the carrying amount of its deferred tax asset once per year, and will review the deferred tax asset in the fourth quarter of 2013 based on the most recent budget for the fiscal years 2014 through 2016.
Discontinued Operations
In June 2012, the management of the Company decided to discontinue artnet Magazine.
The loss from discontinued operations includes the ongoing personnel and material costs that are directly attributable to artnet Magazine, the closure costs incurred in 2012, and proportionate overheads that are allocated via a caused-based break-down. The costs of closing the Paris office are only allocated to discontinued operations to the extent that these relate directly to the production of the French magazine, plus proportionate overheads.
As mentioned in the section entitled Adjustment of Prior-Year Figures, the information for the discontinued operations for the first six months of 2012 had been corrected in both the condensed interim consolidated income statement and cash flow statement.
No more assets were to be allocated to the artnet Magazine division (discontinued operations) as of June 30, 2013. However, 37,000 EUR of the provisions were attributable to the discontinued operations.
Segment Reporting
The Group reports on the operating segments in the same way it reports operating segment information to the management and supervisory board.
The four Group's reportable continued segments are as follows:
• The artnet Galleries segment presents the member galleries' artworks that are available for sale online
- • The artnet Price Database comprises all database-related products, including the artnet Price Database Fine Art and Design and the artnet Price Database Decorative Art, as well as the products based thereupon, or artnet Market Alert, artnet Market Reports, artnet Monographs, and artnet Analytics
- • artnet Advertising produces banner as well as national and international advertising on the website
- • artnet Auctions provides an online platform to buy and sell artworks online
The new cost distribution method resulting from the discontinuation of the artnet Magazine was applied retroactively to ensure comparability for 2012. Segment performance is evaluated based on profit or loss before taxes. Not directly attributable expenses are allocated to the reportable segments primarily based on the headcount and revenue for each reportable segment.
A measure of total assets or liabilities for each reportable segment is not provided to the management. Therefore, total assets or liabilities are not disclosed for each reportable segment.
| EUR Period ended June 30, 2013 |
artnet Galleries |
artnet Price Database |
artnet Auctions |
artnet Advertising |
Total | |
|---|---|---|---|---|---|---|
| Revenue | 2,439,000 | 2,487,000 | 1,096,000 | 543,000 | 6,565,000 | |
| Profit Before Tax | 507,000 | 141,000 | (845,000) | 137,000 | (60,000) | |
| EUR Period ended June 30, 2012 |
artnet Galleries |
artnet Price Database |
artnet Auctions |
artnet Advertising |
Continued Operations | Discontinued Operations |
| Revenue | 2,471,182 | 2,536,130 | 1,390,540 | 611,062 | 7,008,915 | 41,000 |
| Profit Before Tax | 173,788 | 429,051 | 732,297 | (30,412) | (507,446) | (628,362) |
Earnings per Share
Basic earnings per share are calculated by dividing net income by the weighted-average number of common shares outstanding during the year.
Diluted earnings per share are calculated in the same manner as basic earnings per share, with the exception that the average number of shares outstanding increases by adding the potential number of shares from stock option conversions.
The calculation of earnings per share is based on the following data:
| 01/01/2013–06/30/2013 | 01/01/2012–06/30/2012 | |
|---|---|---|
| EUR | EUR | |
| Numerator (earnings) | ||
| Consolidated result of the first six months | (50,777) | (1,144,433) |
| Denominator (number of shares) | ||
| Weighted average number of ordinary shares used to calculate | ||
| basic earnings per share (issued and fully paid ordinary shares) | 5,552,986 | 5,552,986 |
| Effect of potential shares: stock options | - | - |
| Weighted average number of ordinary shares used to calculate | ||
| dilutive earnings per share | 5,552,986 | 5,552,986 |
The weighted average exercise price is higher than the average share price in 2013. As a result, there are no diluted shares.
Employees
In the first six months of 2013, there were 107 full-time employees, as compared with 122 during the same period of last year. Additionally, the Group employed eight part-time employees in the first six months of 2013, as compared to 14 in the same period a year ago, and nine sales and other consultants, compared to 11 as of June 30, 2012.
Accounting Estimates and Assumptions
The preparation of the consolidated financial statements in accordance with IFRS necessitates estimates and assumptions that influence assets and liabilities, income and expenses, as well as information in the notes to the six month financial statements. Actual results and developments may differ from those estimates and assumptions.
Estimates made by the management that have a significant effect on the interim consolidated financial statements include the recognition of deferred tax assets and of development costs, the measurement of provisions and accruals, the useful lives of non-current assets, and the assessment of bad debt provisions on accounts receivables.
Notification Concerning Transactions by Persons Performing Managerial Responsibilities in Accordance with § 15a of the Securities Trading Act
The company was not informed about transactions by persons performing managerial responsibilities to § 15a of the Securities Trading Act.
Notification Pursuant to § 26 (1) of the Wertpapierhandelsgesetz (WpHG – German Securities Trading Act)
The company was not informed about reportable notifications of changes for voting rights pursuant to the meaning of § 26 (1) of the Wertpapierhandelsgesetz.
Report on Post-Balance Sheet Events
As of July 30, 2013 Prof. Dr. Walter Rust will resign as Deputy Chairman from the Supervisory Bord of artnet AG. He will be officially replaced by Piroschka Dossi, who will be appointed as a new member of the supervisory board, as of August 1, 2013.
There were no more reportable events of significance after the balance sheet date that could have a material impact on the artnet Group's financial position or results of operations.
Berlin, August 5, 2013
Jacob Pabst Chairman and CEO of artnet AG
artnet AG
Supervisory Board John Hushon, Chairman Prof. Dr. Walter Rust, Deputy Chairman Hans Neuendorf Management Board Jacob Pabst, Chairman and CEO
Artnet Worldwide Corporation Jacob Pabst, CEO
artnet UK Ltd. Jacob Pabst, CEO
artnet France sarl
Jacob Pabst, CEO
Addresses
artnet AG
Oranienstraße 164 10969 Berlin [email protected] Tel. +49 (0)30 209 178-0 Fax +49 (0)30 209 178-29
Artnet Worldwide Corporation
233 Broadway, 26th Floor New York, NY 10279-2600 USA [email protected] Tel. +1-212-497-9700 Fax +1-212-497-9707
artnet UK Ltd.
Morrell House 98 Curtain Road London EC2A 3AF United Kingdom [email protected] Tel. +44 (0)20 7729 0824 Fax +44 (0)20 7033 9077
Investor Relations
You can find information for investors and the annual financial statements at www.artnet.com/investor-relations.
If you have further queries, please send an email to ir@artnet. com or send your inquiry by mail to one of our offices.
German securities code number
The common stock of artnet AG is traded on the Prime Standard of the Frankfurt Stock Exchange under the symbol "ART." You can find notices of relevant company developments at www.artnet.com/investor-relations.
Wertpapier-Kenn-Nummer
[WKN] A1K037 ISIN DE000A1K0375
Concept and Production Artnet Worldwide Corporation
©2013 artnet AG, Berlin