Getty Images has reported that fourth quarter revenue grew 20.6 percent to $162.1 million compared to $134.4 million in the fourth quarter of 2003. Excluding the effects of changes in currency exchange rates, revenue grew 15.5 percent. For 2004, revenue grew 19.0 percent to $622.4 million compared to $523.2 million in the prior year. Excluding the effects of changes in currency exchange rates, revenue rose 12.7 percent compared to 2003.
Operating income for the fourth quarter of 2004 grew 54.1 percent to $43.8 million, or 27 percent of revenue, compared to $28.4 million, or 21.1 percent of revenue, in the same quarter last year.
Operating income for the full year of 2004 rose 62.9 percent to $168.3 million, or 27.0 percent of revenue. In 2003 operating income totaled $103.3 million or 19.8 percent of revenue
"A strong December capped another record-setting year for Getty Images - we achieved the highest level of revenue, operating margin and net income in our ten-year history, for both the fourth quarter and full year," said Jonathan Klein, Getty Images' co-founder and CEO. "We met or exceeded every 2004 target we set for the company, including achieving significant growth in our editorial business, launching the first fully localized e-commerce site in Japan and achieving a 27 percent operating margin, two full percentage points ahead of our target."
Klein pointed out that typically December can be unpredictable, but this time they saw very healthy demand that made it one of the strongest months of the year. He said, "December tends to be indicative of strong conditions for our customers and that was the case last year in stark contract to the Decembers of 2001 and 2002 when business prospects were much more uncertain for out customers."
Business Outlook
For the 1st quarter of 2005 the company expects to report revenue in the range of $175 million to $180 million and earnings per diluted share of $.51 to $.54. For all of 2005 the company expects revenue in the range of $705 million to $715 million and earnings per diluted share of $2.10 to $2.20.
Revenue Breakdown
|
|
Q1 2003
|
Q2 2003
|
Q3 2003
|
Q4 2003
|
Q1 2004
|
Q2 2004
|
Q3 2004
|
Q4 2004
|
|
Rights Managed
|
55.9%
|
52%
|
50%
|
51%
|
51%
|
49%
|
46%
|
46%
|
|
Royalty Free
|
27.7%
|
31%
|
33%
|
32%
|
32%
|
32%
|
34%
|
34%
|
|
News/Sports/Entertain/Archival
|
9.6%
|
|
|
10.5%
|
10.3%
|
12%
|
12%
|
12%
|
|
Footage
|
5.8%
|
|
|
5.5%
|
5.2%
|
5%
|
5.5%
|
6%
|
|
Other (Assignment, etc.)
|
1%
|
|
|
1%
|
1.5%
|
2%
|
2.5%
|
2%
|
The above percentages translate into the following dollar figures for the last eight quarters (in millions of dollars).
|
|
Q1 2003
|
Q2 2003
|
Q3 2003
|
Q4 2003
|
Q1 2004
|
Q2 2004
|
Q3 2004
|
Q4 2004
|
|
Gross Revenue
|
$130.3
|
$127.7
|
$130.8
|
$134.4
|
$156.5
|
$150.3
|
$153.5
|
$162.1
|
|
|
|
|
|
|
|
|
|
|
|
Rights Managed
|
$72.83
|
$66.4
|
$65.4
|
$68.5
|
$79.8
|
$73.65
|
$70.6
|
$74.5
|
|
Royalty Free
|
$36.09
|
$39.59
|
$43.16
|
$43
|
$50.1
|
$48.1
|
$52.1
|
$55.1
|
|
News/Sports/Entertain/Archival
|
$11.7
|
$12.4
|
$13
|
$14.1
|
$16.15
|
$18
|
$18.42
|
$19.4
|
|
Footage
|
$8.15
|
$6.9
|
$7.23
|
$7.4
|
$8.1
|
$7.5
|
$8.4
|
$9.3
|
|
Other (Assignment, etc.)
|
$1.33
|
$1.65
|
$2
|
$1.4
|
$2.35
|
$3
|
$3.8
|
$3.8
|
Stock Revenue As Percentage of Total Revenue
|
|
Q1 2003
|
Q2 2003
|
Q3 2003
|
Q4 2003
|
Q1 2004
|
Q2 2004
|
Q3 2004
|
Q4 2004
|
|
Stock Photo Percentage
|
83.6%
|
83%
|
83%
|
83%
|
83%
|
82%
|
80%
|
80%
|
|
Stock Photo Revenue
|
$108.92
|
$105.99
|
$108.56
|
$111.5
|
$129.9
|
$121.75
|
$122.7
|
$129.68
|
Average Price Per Usage
The worldwide average price-per-image (ppi) for RM fell slightly in the quarter to $585 from $591 the previous quarter. For RF the average ppi rose to $210 from $202 the previous quarter.
The average price for a film clip for the quarter was $625, down from $654 in the previous quarter and also down on the year over year basis.
Image Used Chart
|
|
Q1 2003
|
Q2 2003
|
Q3 2003
|
Q4 2003
|
Q1 2004
|
Q2 2004
|
Q3 2004
|
Q4 2004
|
|
ROYALTY FREE
|
|
|
|
|
|
|
|
|
|
Gross Revenue (millions)
|
$36.09
|
$39.59
|
$43.16
|
$43
|
$50.1
|
$48.1
|
$52.1
|
$55.1
|
|
****online sales
|
$28.87
|
$31.67
|
$34.89
|
$35.16
|
$40.93
|
$40.4
|
$44.3
|
$46.9
|
|
Price Per Image
|
$131
|
$142
|
$157
|
$165
|
$193
|
$194
|
$202
|
$210
|
|
Number Images Licensed
|
220,381
|
223,028
|
222,256
|
213,128
|
212,072
|
208,247
|
219,306
|
223,285
|
|
|
|
|
|
|
|
|
|
|
|
RIGHTS MANAGED
|
|
|
|
|
|
|
|
|
|
Gross Revenue (millions)
|
$72.83
|
$66.4
|
$65.4
|
$68.5
|
$79.8
|
$73.65
|
$70.6
|
$74.5
|
|
Price Per Image
|
$550
|
$570
|
$576
|
$552
|
$605
|
$581
|
$591
|
$585
|
|
Number Images Licensed
|
132,418
|
116,491
|
113,542
|
124,094
|
131,900
|
126,764
|
119,458
|
127,350
|
|
|
|
|
|
|
|
|
|
|
|
Total Images Licensed
|
352,799
|
339,519
|
335,798
|
332,578
|
343,972
|
335,011
|
338,764
|
350,635
|
|
Percent RF
|
63%
|
66%
|
67%
|
63%
|
62%
|
63%
|
65%
|
64%
|
|
Percent RM
|
37%
|
34%
|
33%
|
37%
|
38%
|
37%
|
35%
|
36%
|