LONDON (Brand Republic) - DoubleClick has announced better than expected fourth-quarter results, but warned that its revenues and earnings in 2001 could suffer because of the slow-down in the advertising market.
The company’s fourth-quarter 2000 revenue was $132.3m, an increase of 41% over the same period last year, and its gross profit was $73.4m, a 41% increase on last year.
However, in 2001, media revenues are expected to be down between 25% and 30%. This is mostly due to losing AltaVista as a client and the impact from the weak economic and advertising environment, the company said.
In the first quarter of 2001, the company predicts a loss of between 9 cents and 7 cents a share. Analysts had estimated a loss of 6 cents a share. However, revenue from DoubleClick’s TechSolutions -- the company’s technology and software operation -- is expected to grow by 35% to 40%
In a conference call, the company’s CEO Kevin Ryan was upbeat about the prospects for the second half of the next year, which he believes will see an increase in traditional advertisers as dotcom boom continues to fade.