LCTO has completed its reverse split and is temporarily trading under the symbol LCTOD. Second quarter results:
biz.yahoo.com
Friday August 24, 9:42 am Eastern Time
El Sitio Q2 losses widen hit by weak ad market
NEW YORK, Aug 24 (Reuters) - Internet media company El Sitio Inc. (Nasdaq:LCTOD - news), which targets Spanish and
Portuguese speakers, on Friday posted wider second-quarter losses as the soft advertising environment sharply reduced revenues.
Argentina-based El Sitio, one of the Latin American pioneers riding the Internet wave two years ago, posted a
net loss including discontinued operations of $33.6 million, or $7.43 per share, compared to a loss of $23.5
million, or $5.69 per share, a year earlier.
The per share results reflect a 1-for-10 reverse share split. Revenues fell to $2.9 million from $7.1 million a
year earlier.
El Sitio, which targets audiences in Latin America and the United States, got a harder blow from the U.S.
economic slowdown than its U.S. counterparts. Lower Internet usage in the region combined with domestic
economic turmoil in several countries further undermined investor and advertiser confidence.
Advertising revenues contracted to $1.9 million in the quarter ended in June from $4.8 million in the same
period of 2000. Connectivity services revenues fell to $1 million from $2.3 million.
El Sitio last October agreed to merge with Ibero American Media Partners II Ltd. -- a joint venture of members of Venezuela's powerful Cisneros Group of
Companies -- and funds affiliated with Hicks, Muse, Tate & Furst Inc., to form Claxson Interactive Group Inc.
El Sitio said the second-quarter revenue drop reflected its ``transition...from a stand-alone Internet model to its contemplated role within Claxson'' and its decision to
discontinue its e-commerce operations and sell its connectivity services in Argentina.
El Sitio will hold a shareholder meeting on Sept. 7 to vote on the Claxson venture, in which it is expected to have a 20 percent share.
El Sitio's total page views in the second quarter were 424 million, compared with 580 million in the first quarter. Average monthly unique users totaled 2.6 million in
the period compared with 3 million in the previous quarter. |
