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Generates Net Income of $91.7 Million in the Second Quarter
Board Declares Third Quarter Dividend of $0.10 Per Share
NEW YORK, Aug. 6, 2013 (GLOBE NEWSWIRE) -- Sotheby's (NYSE:BID) today reported financial results for the second quarter and first half ended June 30, 2013.
Sotheby's reported second quarter total revenues of $304.8 million and first half total revenues of $406.6 million in 2013, which essentially match both periods in the prior year. Auction commission revenues were positively impacted by the buyer's premium rate increase that took effect on March 15
th and contributed an additional $19.8 million of second quarter revenue. For the full six months of 2013, the benefit of the new rate structure was offset by contracting sellers' margins, attributable to competitive pressures to win high-value consignments. However, subsequent to the rate change, auction commission margin improved from 15.3% to 15.9% in the second quarter. Total expenses increased 2% in the second quarter and 5% in the first half of 2013, due in part to support Sotheby's multi-year strategic initiatives to invest in those areas which best serve the Company's clients, expand business growth, and enhance shareholder value. These include the significant improvements to Sotheby's digital media offerings and the development of China and other emerging markets. Management expects that these strategic investments will benefit Sotheby's future financial results.
Sotheby's net income for the three and six months ended June 30, 2013 benefited from a $6.8 million income tax benefit recognized in the second quarter. There was no similar tax benefit recorded in the prior year. For the second quarter of 2013, net income was $91.7 million, or $1.33 per diluted share, a 7% ($6.3 million) improvement from the second quarter of 2012. For the first half, net income was $69.4 million, or $1.00 per diluted share, a 7% ($5.4 million) shortfall from prior year.