Sales, Losses Fall at MediaBay
By Staff -- Publishers Weekly, 9/3/2001
Sales fell 12.8% to $10.9 million at MediaBay for the second quarter ended June 30, 2001, although the company was able to cut its net loss to $2.0 million from $5.3 million in last year's second quarter. The decline in sales was due in part to the $1 million the company received in last year's quarter to promote the I-Jam digital audio player. Sales were also down as a result of MediaBay's decision last summer to focus its attention on selling fewer, though more profitable, titles, a move that also helped MediaBay reduce its losses. Lower returns and reduced costs also contributed to the improved bottom line.
In the quarter, sales through MediaBay's Audio Book Club segment dipped slightly, to $8.0 million from $8.1 million, while sales in its Radio Spirits line fell to $2.9 million from $3.5 million. Sales through MediaBay.com plunged to $56,000 from $1.0 million in last year's second quarter.
MediaBay chairman Norton Herrick said that with the company's improving financial results, he was looking to expand the company through acquisitions. "In three to nine months we could be much larger with even greater improved operating results," Herrick said. For the first half of 2001, sales fell 12.4%, to $20.5 million, while the pretax loss was cut to $4.4 million from $6.6 million.
