Ad Pepper Media to Exit US Market
"By taking decisive action, ad pepper media will consolidate its operations and focus its attention on the large key European markets where it has already achieved significant market share and where profitability is most achievable in the near term," said Ulrich Schmidt, ad pepper media's CEO. He said that because of the "volatility and depressed situation" in the U.S. advertising market, he does not expect the company to achieve profitability in the United States anytime soon.
As a result of closing the five offices, ad pepper media will take a charge in the second quarter of 750,000 euros, or about $657,000.
The company plans to close its sales offices in New York, San Francisco and Los Angeles, according to spokesman Philip Ellison, affecting about a dozen people. Ad pepper media's U.S. clients will continue to be served by the company's local partners.
Ad pepper media recently said its annual revenue in 2000 rose 337 percent to $13.5 million, but its net loss grew 285 percent to $8.5 million.