Getty 2004 Results

Posted on 1/29/2005 by Jim Pickerell | Printable Version | Comments (0)

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%


Copyright © 2005 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-251-0720, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  

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