IVillage Reduces Losses

NEW YORK Online publisher iVillage this week reported a revenue decline but narrower losses for the fourth-quarter and full-year 2002.

The parent company of iVillage.com and Women.com posted fourth-quarter revenue of $13.7 million, down 24 percent from $18 million in the year-ago period. Net loss for the quarter was $7.5 million or 13 cents per share, an improvement over a net loss of $9.8 million or 18 cents per share in Q4 2001.

Revenue for fiscal year 2002 reached $59.4 million, a 1 percent decline from $60 million in 2001. Net loss for the year was $33.9 million or 62 cents per share, compared to a net loss of $48.5 million or $1.13 per share in 2001.

“Looking ahead to 2003, we believe a blend of rigorous cost management, an uptick in Internet advertising and the rollout of more subscription and fee-based services is the formula for a stronger 2003,” said Douglas W. McCormick, chairman and chief executive officer of iVillage.

IVillage reported that during 2002 it added more than 130 new advertisers, including 44 new advertisers and 18 new brands in the fourth quarter. These include Allstate Insurance, Celebrity Cruises, Kellogg’s, L’Oreal, Maidenform and Paramount Pictures, among others.

The New York-based women’s media company said that it continues to modify its advertising model; it has reduced the use of button ads and adopted preferred ad sizes. Last year, iVillage eliminated pop-up advertising from its network after research indicated that consumers found the ad units to be the most frustrating feature on the Web [IQ Daily Briefing, Aug. 2, 2002].

IVillage shares (IVIL) were unchanged at 66 cents on the Nasdaq Friday. The stock’s 52-week high is $2.84 and 52-week low is 52 cents.