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Jupiter 1Q08 results: revenue, margins decline
JupiterMedia released its results for the 1st quarter of 2008 showing a year-over-year decline in both actual revenue and profit margins. These came despite growth in the company’s high-end royalty-free subscription business, JupiterImages Unlimited, and its micro-stock business, StockXpert. According to the company, decreased revenue from JupiterImages’ distribution network and lower-than-anticipated job-board revenue from MediaBistro contributed to the disappointing numbers. Jupiter’s stock closed at $2.17 per share on Friday, May 9, about 26% of it’s 52-week high of $8.38.
During a conference call with analysts about the results, CEO Alan Meckler described the challenging environment the images division faces as one in which the traditional royalty free and rights managed business are in decline and the micro-stock and subscription businesses are growing, but the latter have yet to stabilize. As he has on the last several quarterly calls, Meckler drew attention to the growing JupiterImages Unlimited subscription sales and related increasing deferred revenue as signs the business has a bright future. He also stated the company would launch a Jupiter Digital “superstore “ by approximately September 1 of this year. At the same time, MediaBistro will continue to expand its on-line training courses, another source of revenue growth.
Online Images revenue declined 6% from $27.9MM in 1Q07 to $26.1MM in 1Q08, while the Online Media division posted a 23% increase from $6.9MM to $8.4MM over the same periods. Gross, operating and net margins all declined, however, with the company showing an increase in its quarterly net loss from $1.1MM in the first quarter of 2007 to $1.4MM in the first quarter of 2008.
Web-site: JupiterMedia.com
Posted in: Jupiter Media, News, Stock Photo Companies
