The newly merged 24/7 Real Media Inc. said yesterday that its net loss for the third quarter declined to $30.8 million, or 70 cents per share, from $56.7 million, or $1.49 per share, a year ago.
Total revenue for the quarter fell to $8.3 million, from $40.1 million in third-quarter 2000.
The company noted that because of its acquisition of Real Media, it changed the way it reports earnings from its various businesses to “better reflect how it manages” those businesses. 24/7 Real Media now reports earnings in two segments, Integrated Media Solutions and Technology Solutions.
Revenue from the company's Integrated Media Solutions business fell to $7 million in the third quarter, from $30.4 million a year ago. The segment includes operating results from 24/7 Real Media's network ad representation, e-mail list management and brokerage, iPromotions and Website Results businesses.
Technology Solutions revenue in the quarter fell to $1.3 million, from $9.7 million a year earlier. The segment includes results from the company's Broadband Professional Services business, which includes revenue from its 24/7 Connect and Open AdStream ad-serving platforms.
On Oct. 30 the company announced its acquisition of ad-serving rival Real Media Inc. for $1.9 million. With that move it vaulted itself to the No. 2 position in the market behind DoubleClick Inc. 24/7 Real Media has an in-house e-mail database of 35 million addresses.
24/7 Real Media anticipates more than $10 million in annual operational savings as a result of the merger. The savings will come from laying off about 15 percent of the combined staff and eliminating redundant expenses. 24/7 Real Media will have about 300 employees after the merger is complete.
The company said that despite the lower revenue posted by its Integrated Media Solutions business in the third quarter, its e-mail business is picking up because of “the seasonal ramp in holiday marketing and consumer anxiety surrounding traditional direct marketing mail.”
