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24/7 Reports Q2 Revenue Growth Over Q1

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NEW YORK -- 24/7 Real Media Thursday reported an increase in revenue for the second quarter versus Q1, but a one-cent-a-share rise in net losses.

Excluding revenue from the U.S. 24/7 Mail product, which was sold in May [IQ Daily Briefing, May 3], revenue for the New York-based online marketing and technology company totaled $10.2 million in the second quarter, a boost of 7.4 percent from $9.5 million in the first quarter.

However, revenue dropped nearly ten percent compared to the same time a year ago. Management attributed the year-over-year revenue decline to the acquisition of Real Media in October 2001, which offset the sale of Exactis in May 2001 and the 24/7 Mail product in May 2002.

Net losses rose to $4.2 million or eight cents per share, compared to $3.7 million or seven cents per share in the first quarter. But net losses improved over Q2 2001, a quarter in which 24/7 tallied $53.8 million or $1.23 per share in losses.

Pro forma loss was $3 million or six cents per share, a cent less per share than first quarter's $3.7 million. In Q2 2001, pro forma loss was $14.5 million or 33 cents per share.

The company projects revenue growth of 5-10 percent in the third quarter and a pro forma loss from continuing operations in the 5-7 cent per share range.

Also on Thursday, the company said that Sunra Capital Holdings Limited, an investment group that pledged up to a $7 million investment in 24/7 in July [IQ Daily Briefing, July 3] had raised that amount by $1 million. The additional capital, which will bring the total invested to $8 million, is subject to shareholder approval.