K-Tel Profit Attributed to Sale of Finland Subsidiary
K-Tel International, Minneapolis, posted net income of $2.9 million on revenues of $18.1 million for the fiscal quarter ended Sept. 30. While the company said the income figure marked an improvement over a loss of $3.1 million during the comparable period last year, the gains were partly attributed to the sale of its subsidiary in Finland for $4.3 million.Its revenues for the quarter declined 3.7 percent to $18.1 million during the period, but the company said its domestic music division boosted sales 18 percent to $9.4 million. That sales boost was attributed to two music compilations that performed well: "Club Mix 2000" and "Greatest Sports Rock & Jams Vol. IV."
Meanwhile, the company said it intended to bolster its Internet retailing operations. It hired 24/7 Media to sell banner ads on K-Tel's Online Music and Entertainment Store and on its online radio station. The companies will share the revenue from those sales.
K-Tel partnered with catalog retailer Damark International on a co-branded custom CD site that allows K-Tel Online access to Damark's base of more than 1 million shopping club members.
