Getty Sales Up

Posted on 4/8/2002 by Jim Pickerell | Printable Version | Comments (0)



Signs of Life in Ad Spending

April 8, 2002

Getty Images announced significantly higher than expected 1st Quarter revenues of $113.5
million in a pre-release statement on April 5th. This was up from $102 million for the
4th Quarter and exceeded Getty's 1st Quarter estimate of between $103 and $106 million.

In addition Getty Images has made a profit for the first time since 1997. They expect
the Earnings Per Share (ESP) to be between $.04 and $.05 per share, compared with the
previous guidance of a loss of $.05 per share.

Getty would not normally be expected to announce the full results of the quarter until
April 24th, but a pre-release statement is appropriate when the numbers are expected to
be either much better, or much worse, than the previous guidance the company had given

CEO Jonathan Klein said: "revenue has grown more than 10 percent, sequentially, over Q4.
And, in addition to that, we have made a profit for the first time since 1997."

Raising Estimates - But Room For Upside

Klein told Vivien Lou Chen of Bloomberg News, "We had previously guided to $430 million
to $460 million for the full year. But given the progress we are making, we've increased
that guidance to, at the bottom end, 460 million, to up to 480 million. And we've given
earnings per share guidance of 35 to 45 cents. By way of reference, the consensus
numbers were nearer 20 cents."

Morgan Stanley raised their estimate of Getty's 2002 earning from $448M to $460M and
Earnings Per Share (EPS) from $0.31 to $0.40. But, even with this improved estimate they
acknowledged, "We believe there could still be upside to these estimates, as (the
current) 2002E revenues assume economic conditions remain at 1Q levels."

The $480 million figure would get Getty Images very close to the $484.8 million in sales
they recorded in 2000.

Getty expects their revenue for the second quarter to be, "along the lines of revenue of
between $115 and $119 million, a margin of approximately 27 percent, resulting in fully
diluted EPS of between 7 cents and 9 cents a share."

Demand Improves

Demand from its core advertising customer continued to improve during the quarter,
especially in rights-managed images, in both the U.S. & Europe. Getty no longer expects
Europe to lag the U.S. recovery. Getty reports that customer sentiment is decidedly more
positive and that demand improved throughout the quarter. In addition there were no
unusually large orders driving results.

Klein told Bloomberg News that the customers Getty services in the advertising,
publishing and media industries were "very quiet" in the second half of 2001. The
advertising industry has said 2001 was the worst year since 1938.

Klein attributes the company's improvement in sales to:

  • Advertising customers getting back to work;

  • Getty's being in a position to take additional market share and get a
    disproportionate share of the revenue being spent;

  • And an improved cost base as more sales were done over the internet. With these
    sales a larger share of the extra revenue drops to the bottom line.

Klein told Chen that there was no lift in sales from post September 11th demand. "Quite
the contrary, in fact. What happened as a result of September 11th is that there was so
much uncertainty in the economy, that the creative or advertising businesses really did
suffer. Our news business, which is a very small part of our company, certainly, was
very busy post September 11th. We have photographers in Afghanistan, the Middle East,
Pakistan, et cetera. But September 11th was not good for business at all. And it's fair
to say that, in January and February, our customers began to get back to work, having
been very uncertain through the second half of last year."

He continued, "We feel that even - that just the modest improvement that we saw in the
first quarter in demand is enough for us to feel much more confident about the whole of
the year from a revenue or sales perspective. And we do have our cost base very locked
down and a very powerful business model, due to the fact that we have
changed our company from a labor-intensive and analog business to an electronic or
e-commerce business, with the result that there's very little cost to us in extra
revenue because so much of it happens electronically."

Copyright © 2002 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 301-461-7627, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of, 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:  


Be the first to comment below.

Post Comment

Please log in or create an account to post comments.

Stay Connected

Sign up to receive email notification when new stories are posted.

Follow Us

Free Stuff

Stock Photo Pricing: The Future
In the last two years I have written a lot about stock photo pricing and its downward slide. If you have time over the holidays you may want to review some of these stories as you plan your strategy ...
Read More
Future Of Stock Photography
If you’re a photographer that counts on the licensing of stock images to provide a portion of your annual income the following are a few stories you should read. In the past decade stock photography ...
Read More
Blockchain Stories
The opening session at this year’s CEPIC Congress in Berlin on May 30, 2018 is entitled “Can Blockchain be applied to the Photo Industry?” For those who would like to know more about the existing blo...
Read More
2017 Stories Worth Reviewing
The following are links to some 2017 and early 2018 stories that might be worth reviewing as we move into the new year.
Read More
Stories Related To Stock Photo Pricing
The following are links to stories that deal with stock photo pricing trends. Probably the biggest problem the industry has faced in recent years has been the steady decline in prices for the use of ...
Read More
Stock Photo Prices: The Future
This story is FREE. Feel free to pass it along to anyone interested in licensing their work as stock photography. On October 23rd at the DMLA 2017 Conference in New York there will be a panel discuss...
Read More
Important Stock Photo Industry Issues
Here are links to recent stories that deal with three major issues for the stock photo industry – Revenue Growth Potential, Setting Bottom Line On Pricing and Future Production Sources.
Read More
Recent Stories – Summer 2016
If you’ve been shooting all summer and haven’t had time to keep up with your reading here are links to a few stories you might want to check out as we move into the fall. To begin, be sure to complet...
Read More
Corbis Acquisition by VCG/Getty Images
This story provides links to several stories that relate to the Visual China Group (VCG) acquisition of Corbis and the role Getty Images has been assigned in the transfer of Corbis assets to the Gett...
Read More
Finding The Right Image
Many think search will be solved with better Metadata. While metadata is important, there are limits to how far it can take the customer toward finding the right piece of content. This story provides...
Read More

More from Free Stuff