TheStreet Q2 revs rise 54 pct on paid services
NEW YORK, July 17 (Reuters) - Online financial news provider TheStreet.com Inc. <TSCM.O> said Wednesday its second-quarter loss narrowed and revenue rose for the first time since the fourth quarter of 2000, helped by strength in its paid services.
The company, co-founded by former hedge fund manager James Cramer, said its net loss narrowed to nearly $2 million, or 8 cents a share, from $6.9 million, or 25 cents a share, a year earlier. Revenue rose 54 percent, to $5.5 million from a year earlier.
"These solid, across-the-board results validate our conviction that multiple revenue streams will continue to provide the foundation for our continued success," said Thomas Clarke, chairman and chief executive of TheStreet.com, in a statement.
The company, one of the dot-coms that has managed to survive despite the bust, said its subscription revenue rose to $3.7 million, up 22 percent from the first quarter 2002 and up 74 percent from a year-earlier.
TheStreet.com has focused on diversifying its revenue base with paid services, including Web sites and e-mail alerts for financial professionals and investment conferences, to offset the slump in advertising spending.
Ad revenue rose 11 percent, to $1.2 million from a year-earlier and 74 percent from the first quarter, helped by new clients.
Earlier this year, the money-losing Internet media company said it expected flat advertising revenue, but a 20 percent increase in subscription revenue during 2002.
Total cash burn in the quarter totaled $666,000, down 74 percent from the $2.6 million spent in the first quarter and down 91 percent from a year-earlier.
Cash, restricted cash, and investments as of June 30 remained essentially flat at about $31 million.
TheStreet.com said it bought an additional 0.3 percent of its outstanding shares during the quarter. The company said it plans to continue being an active buyer as long as it felt there was a discrepancy between the company's intrinsic value and the stock price.
The New York-based company's shares closed Tuesday at $2.39, up 83 percent from the beginning of the year.
07/17/02 08:28 ET
Copyright 2002 Reuters Limited. |
