671
GETTY, THIRD QUARTER 2004
October 26, 2004
Getty Images has reported that third quarter revenue grew 17.4 percent to $153.5 million compared to $130.8 million in the third quarter of 2003. Excluding the effects of changes in currency exchange rates, revenue grew 12.4 percent. Operating income for the third quarter of 2004 grew 53.6 percent to $41.7 million, or 27.2 percent of revenue, compared to $27.2 million, or 20.8 percent of revenue, in the same quarter last year. Net income for the third quarter was $26.7 million or $0.44 per diluted share, compared to $9.4 million, or $0.16 per diluted share, for the same quarter in 2003.
"We achieved very strong results in the third quarter, with significant year-over-year growth in revenue, operating income and earnings," said Jonathan Klein, Getty Images' co-founder and CEO. "We have made excellent progress on all of our 2004 initiatives, and we have continued to see an acceleration in revenue growth while exceeding our operating margin goals for every quarter this year."
Business Outlook
For all of 2004 the company expects to report results at the upper end of the previous guidance with revenue of approximately $615 million and earnings per diluted share of approximately $1.70.
Revenue Breakdown
|
Q3 2002
|
Q4 2002
|
Q1 2003
|
Q2 2003
|
Q3 2003
|
Q4 2003
|
Q1 2004
|
Q2 2004
|
Q3 2004
|
Rights Managed
|
56%
|
54%
|
55.9%
|
52%
|
50%
|
51%
|
51%
|
49%
|
46%
|
Royalty Free
|
28%
|
30%
|
27.7%
|
31%
|
33%
|
32%
|
32%
|
32%
|
34%
|
News/Sports/Entertain/Archival
|
|
9.3%
|
9.6%
|
|
|
10.5%
|
10.3%
|
12%
|
12%
|
Footage
|
|
5.5%
|
5.8%
|
|
|
5.5%
|
5.2%
|
5%
|
5.5%
|
Other (Assignment, etc.)
|
|
1.2%
|
1%
|
|
|
1%
|
1.5%
|
2%
|
2.5%
|
The above percentages translate into the following dollar figures for the last
nine quarters (in millions of dollars).
|
Q3 2002
|
Q4 2002
|
Q1 2003 |
Q2 2003 |
Q3 2003 |
Q4 2003 |
Q1 2004 |
Q2 2004 |
Q3 2004 |
Gross Revenue |
$118.2 |
$117.7 |
$130.3 |
$127.7 |
$130.8 |
$134.4 |
$156.5 |
$150.3 |
$153.5 |
|
|
|
|
|
|
|
|
|
|
Rights Managed |
$66.192 |
$63.56 |
$72.83 |
$66.4 |
$65.4 |
$68.5 |
$79.8 |
$73.65 |
$70.6 |
Royalty Free |
$33.096 |
$35.31 |
$36.09 |
$39.59 |
$43.16 |
$43 |
$50.1 |
$48.1 |
$52.1 |
News/Sports/Entertain/Archival |
|
$11 |
$11.7 |
$12.4 |
($15) |
$14.1 |
$16.15 |
$18 |
$18.42 |
Footage |
|
$6.5 |
$8.15 |
$6.9 |
($6.23) |
$7.4 |
$8.1 |
$7.5 |
$8.4 |
Other (Assignment, etc.) |
|
$1.33 |
$1.33 |
$1.65 |
($1) |
$1.4 |
$2.35 |
$3 |
$3.8 |
It is interesting to note that stock photo revenues (RM plus RF), while still the major part of their business, represented 80% of revenues for the quarter and is trending down as a percentage of total revenues. This is a result of Getty's efforts to diversify and expand other parts of its business, but the trend should not be discounted by those involved in the stock image licensing business. The figures in percentages and total revenue are listed below.
|
Q3 2002 |
Q4 2002 |
Q1 2003 |
Q2 2003 |
Q3 2003 |
Q4 2003 |
Q1 2004 |
Q2 2004 |
Q3 2004 |
Stock Photo Percentage |
84% |
84% |
83.6% |
83% |
83% |
83% |
83% |
82% |
80% |
Stock Photo Revenue |
$99.288 |
$98.87 |
$108.92 |
$105.99 |
$108.56 |
$111.5 |
$129.9 |
$121.75 |
$122.7 |
Average Price Per Usage
The worldwide average price-per-image (ppi) rose in the quarter. For RM the average ppi was $591 up from $581 the previous quarter. For RF the average ppi was $202 up from $194 the previous quarter.
The average price for a film clip for the quarter was $654, up from $612 in the previous quarter and also up from a year ago.
There was a 38% growth in revenue generated from Assignments when compared to Q3 2003. Last quarter the growth was 82% compared with the quarter a year earlier. The slow down in growth on a year-to-year basis is certainly to be expected as the assignment segment grows.
Image Used Chart
|
Q3 2002 |
Q4 2002 |
Q1 2003 |
Q2 2003 |
Q3 2003 |
Q4 2003 |
Q1 2004 |
Q2 2004 |
Q3 2004 |
ROYALTY FREE |
|
|
|
|
|
|
|
|
|
Gross Revenue (millions) |
$33.096 |
$35.31 |
$36.09 |
$39.59 |
$43.16 |
$43 |
$50.1 |
$48.1 |
$52.1 |
****online sales |
$26.477 |
$28.25 |
$28.87 |
$31.67 |
$34.89 |
$34.4 |
$40.93 |
$40.4 |
$44.3 |
Price Per Image |
$107 |
$132 |
$131 |
$142 |
$157 |
$165 |
$193 |
$194 |
$202 |
Number Images Licensed |
247,449 |
214,015 |
220,381 |
223,028 |
222,256 |
208,484 |
212,072 |
208,247 |
219,306 |
|
|
|
|
|
|
|
|
|
|
RIGHTS MANAGED |
|
|
|
|
|
|
|
|
|
Gross Revenue (millions) |
$66.192 |
$63.56 |
$72.83 |
$66.4 |
$65.4 |
$68.5 |
$79.8 |
$73.65 |
$70.6 |
Price Per Image |
$509 |
$479 |
$550 |
$570 |
$576 |
$552 |
$605 |
$581 |
$591 |
Number Images Licensed |
130,043 |
132,693 |
132,418 |
116,491 |
113,542 |
124,094 |
131,900 |
126,764 |
119,458 |
|
|
|
|
|
|
|
|
|
|
Total Images Licensed |
377,492 |
346,708 |
352,799 |
339,519 |
335,798 |
332,578 |
343,972 |
335,011 |
338,764 |
Percent RF |
66% |
62% |
63% |
66% |
67% |
63% |
62% |
63% |
65% |
Percent RM |
34% |
38% |
37% |
34% |
33% |
37% |
38% |
37% |
35% |