Online advertising sales company, DoubleClick, yesterday posted a bleak outlook for the sector’s short-term future as it unveiled its first-quarter financial results. Whilst the results themselves were slightly above analysts’ expectations, the group’s outlook was more negative than had been anticipated.
DoubleClick said that it generated global media revenue for the first quarter of $46.1 million, a decrease of 23% versus the same period last year and 24% versus Q4 2000. Furthermore, it expects media revenues to be down by between 45% and 55% across the whole year.
The group said that it expects a pro forma loss of between 18 and 22 cents per share; analysts had expected a small profit per share.
DoubleClick had benefited greatly from the boom in internet activity during the latter part of the ’90s, but is now feeling the chill of a softening market. It yesterday said that ‘for the time being it will have to manage its operations tightly’.
However, chief financial officer, Stephen Collins, tried to put a positive spin on things, saying: “We have taken the steps necessary to stay lean and mean. As the economy recovers and advertising dollars are allocated more and more to online media, DoubleClick will benefit enormously. We have the resources and staying power to stay on top.”
