Random Thoughts 93

Posted on 12/9/2004 by Jim Pickerell | Printable Version | Comments (0)

6

RANDOM THOUGHTS 93

December 9, 2004

Amana/Zefa Rumor FALSE

Amana CEO David Neilson sent me the following correction to Story (685) that I published on Tuesday concerning a rumor about amana's interest in Zefa.


"The rumor about amana inc. considering making an offer for Zefa Visual Media imminently is completely untrue. I can confirm that amana was one of a number of parties invited to consider the purchase of Zefa Visual Media back in September. Amana backed out of the process almost immediately without submitting any form of bid and has not been involved since. My understanding [and I must stress this is only my understanding of the situation] is that Corbis Images and Zefa Visual Media have entered a period of exclusivity in terms of their discussions with a view to transact a sale in the near future."

Getty Announces Financial Guidance for 2005

Getty Images, Inc. has announced its financial guidance for 2005 as part of its 2004 Analyst Day in New York City. For 2005, the company expects revenue growth of 12 to 14 percent, resulting in annual revenue of approximately $690 million to $700 million. The company expects an operating margin of approximately 30 percent and diluted earnings per share for 2005 of $2.05 to $2.15.

The company also reaffirmed guidance for the full year of 2004, with revenue of approximately $615 million and diluted earnings per share of approximately $1.70.


The above guidance for 2004 and 2005 assumes consummation, by year end, of the company's offer to exchange up to $265.0 million aggregate principal amount of its newly issued 0.5% Convertible Subordinated Debentures, Series B due 2023 for an equal amount of its outstanding 0.5% Convertible Subordinated Debentures due 2023. If the exchange offer is not consummated, the company would expect diluted earnings per share for 2005 to be $1.94 to $2.04 and for 2004 to be approximately $1.61.


Guidance for 2005 does not include costs related to the expensing of stock-based compensation, which is expected to become mandatory in mid-2005 based on the Financial Accounting Standards Board issuing its final statement.

The breakdown of revenue for the various lines of business is expected to be as follows: (The figures are in millions of dollars.)
















    

2004  

2005  

Creative  

$501  

$553  

Editorial  

$70.5  

$83.3  

Footage  

$33.5  

$38.5  

Other Services  

$10  

$20.2  

    

    

    

Total  

$615  

$695  



The company expects a 5% growth in RM volumes in 2005 and an average price increase of 2%. The RF volume growth will be about 7% and the price increase is expected to be about 10%.

Editorial is expected to grow by about 18% and Film by about 15%. In the film area about 7% of the growth will be due to volume increase and 7% due to price.

In the Other category photo assignments grew in 2004 by about 30% and are expected to grow by another 40% next year. It was pointed out that assignments were never expected to generate major revenue for the company, but that being able to offer this service is extremely important in building customer relationships and being able to provide customers with a full range of services including RM, RF and Media Asset Management. About $4 million of "Other" will be from Publicity Distribution and the company expects growth in Media Management Services as well.


Copyright © 2004 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.  

Comments

Be the first to comment below.

Post Comment

You must log in to post comments.

Stay Connected

Sign up to receive our FREE weekly email listing new stories posted.

Follow Us

Free Stuff

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
Where Is The Stock Photo Industry Headed?
For new readers, or those who may have missed some of what I have written over the last few months, the following are a list of stories worth looking at to get a sense of where the industry is headed.
Read More
Photography As A Career
It’s that time of year when high school seniors are waiting for college acceptance letters and thinking about future careers. If you know someone who is thinking about photography as a career you mig...
Read More
2014 Stories You May Have Missed
For many the end of the year is a time to review past experiences and consider whether it makes sense to chart a new course in the year ahead. Stock photography has changed dramatically for professio...
Read More
More Stories In 2014 You May Have Missed
Every so often I put together a list of the most important stories we’ve published in the recent past. If you are engaged in the business of stock photography the links below are to stories that we’v...
Read More
Getty: A Three Month Review
In all the excitement about 35 million FREE images it is worth looking back at some of things that have been happening at Getty Images in the last three months. After watching revenue decline for the...
Read More
State Of Stock Photo Industry: 2013
If you’re looking for an overview of the state of the stock photo industry as of October 2013 the stories listed below are a good place to start. Regular readers of Selling-Stock will have seen all t...
Read More
Education Market Shifts To Digital
If supplying pictures for educational use is a significant part of your business plan you need to be aware of how the market is trending toward digital delivery and how that is likely to affect the p...
Read More

More from Free Stuff