Getty Images announced a 5.5% increase in third-quarter revenues from 2006 figures. The increase is a smaller percentage than Getty reported in the second quarter, which was up 6.5% from the previous year. In addition, third-quarter revenues of $209 million are approximately 10% ($9 million) less than those generated during the second quarter of 2007.
Net income reported was $25.7 million, a significant drop from both the third quarter of 2006 and last quarter of this year, when the company netted $36.3 million and $33.7 million, respectively. Since last quarter, cost of revenue has remained almost the same, and selling, general and administrative expenses went up by two percentage points.
Getty Images co-founder and CEO Jonathan Klein stresses the company’s progress in expanding beyond the traditional creative-stills imagery business. Klein views the new corporate Web site, Getty’s improved standing in the fast-growing entertainment imagery segment, expanded multi-media and editorial footage offerings, new Web-use license, entry into the music industry and launch of the Soundtrack music service as notable successes in achieving the goal of becoming a broad-based digital media company.
An in-depth analysis of Getty’s third-quarter financial results and future outlook by Selling Stock’s Jim Pickerell is forthcoming