Ad serving network 24/7 Media Inc. lost $53.8 million, or $1.23 per share, in the second quarter of 2001, the company said this week.
The loss is up from $22.1 million, or 82 cents per share, a year ago.
24/7 Media also reported total revenue of $13.4 million, down substantially from $40.6 million in second quarter 2000. 24/7 Media said network revenue for the second quarter fell to $5.5 million from $29.2 million last year, e-mail revenue fell to $1.6 million from $8.5 million, and technology revenue rose to $6.3 million from $2.9 million.
To cut costs and reorganize its business around its more profitable services, 24/7 Media said that it would divest itself of its European operations. According to David Moore, 24/7 Media's CEO, that divestiture will save the company more than $1 million a month.
“We continue to make progress in our efforts to reduce costs and focus on our core business lines,” he said. “But we still have a lot of work ahead of us.”
The European operations contributed $4.1 million to the company's bottom line in the second quarter. European network revenue was $3.1 million, e-mail revenue was $700,000 and technology revenue was $300,000.
In May, 24/7 Media closed its offices in Mexico, Brazil, Argentina, Chile and Miami, resulting in annual savings of $3 million. The company also sold its 24/7 Exactis, Sabela Media and Award Track units earlier this year. Those deals have helped the company reduce its operating expenses by nearly $65 million. The sale of those divisions has added more than $19 million to the company's coffers.
The company ended the second quarter with $14.4 million in cash and equivalents. It expects its cash burn rate to be about $2.5 million a month in the third quarter.