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News 
IGN's Finances Improve
- Posted By Michael
Loewer, 07.18.2002
IGN was doing so badly there for a while, the company I mean (not the quality of work), that we had one member on staff here lose nearly $2000 after their stock bombed. However, we support our friends at IGN, and we're happy to report this favorable news.
- Q2 Revenue Up 11% Year-Over-Year & Up 10% Sequentially
- Subscription Revenue Up 26% Over Prior Quarter
- Ninth Straight Quarter of Improving Pro Forma Loss
- Pro Forma Loss Drops Below $1.0 Million
IGN Entertainment, home to IGN.com, the web's largest information and entertainment destination for gamers, announced today its second quarter 2002 results. For the quarter ended June 30, 2002, IGN reported revenue of $2.6 million, compared to $2.3 million for the same period a year ago and $2.3 million for the previous quarter.
GAAP Based Net Loss
The GAAP based net loss for the second quarter of 2002 was $1.3 million, or $0.71 per share. This compares to $9.4 million, or $4.97 per share, for the year ago quarter, and $6.3 million, or $3.58 per share, for the prior quarter.
Sequential and Year-Over-Year Pro Forma Loss Improves
Pro forma net loss before significant non-cash items, restructuring charges and extraordinary items was $970,000, or $0.53 per share, for the second quarter of 2002, compared to $4.6 million, or $2.44 per share, for the year ago period and $1.4 million, or $0.82 per share, for the prior quarter. The difference between the $970,000 pro-forma net loss and the $1.3 million GAAP net loss this quarter consists of $343,000 of depreciation expense.
"Our ninth consecutive quarter of improving cash-based operating loss was the result of both higher revenue and lower expenses," said Mark Jung, IGN's CEO. "We are pleased that we are seeing increases in our top line across the board, with both advertising and subscription revenue showing gains."
Diverse Revenue Sources and Strong Customer Base
Impression-based advertising represented 56 percent of IGN's revenue in the second quarter. The company's second quarter advertising customers included such well-known consumer brands as Cingular Wireless, Intel, Kellogg's, Mastercard, Nokia, Pepsi, Pizza Hut, Procter & Gamble and Wrigley's, as well as top games companies Acclaim, Activision, Eidos, Microsoft, Nintendo, and Sony. Subscriptions accounted for $368,000, or 14 percent of revenue for the quarter. Other product lines -- including e-commerce partnerships, direct response marketing and content licensing -- generated the remaining 30 percent of revenue.
Subscription Revenue Continues to Grow
The company added 11,000 net new subscribers to its IGNinsider program during the second quarter, increasing its subscriber base to more than 56,000 as of June 30, 2002. As a result, subscription revenue grew by 26 percent over the prior quarter. As of July 18, 2002, the IGNinsider subscriber base has grown to 59,000.
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The whole Insider program caused a whole crapload of controversy there for a while, but it's been a major factor in keeping the company afloat. If you get sick of paying for coverage after a while, you could always come to read us more often. I find myself very witty...
Editor-in-Chief Michael Loewer, out.
Source: Press Release
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