CNET Losses Shrink; Revenue Increases Slightly


CNET Networks’ Q2 revenues came in at $58.4 million, a two percent increase compared to revenues of $57.2 million in the year-ago period. Operating loss was $9.8 million, versus an operating loss of $35.1 million; net loss was $11.6 million, compared to a net loss of $25.8 million, in the year-ago quarter.

In other news, Art Fatum, chief corporate officer, will be leaving the company at the end of July. His responsibilities will be distributed among other members of the executive team.

Conference call: CEO Shelby Bonnie claims they are the biggest original content publisher on the Internet..”Trends in advertising are good, but build up is slow…corporate news sector (for us, CNET, TechRepublic etc) remains slow…we are going very aggressively for the consumer electronics sector.”

Shelby is playing up the editorial…”we will focus on proprietary content. That builds barrier to entry.”

GameSpot: We made two small acquisitions for it…we are seeing good traction on advertising side for it. For our premium GameSpot Complete subscription service: 53.5 thousand subscribers in Q1, rose to 58.4 thousand subscribers in Q2. [this was the first renewal cycle…]
Marketing campaign: CNET is going to go for a marketing campaign for the second half of this year, more aimed at consumers…”we have an ability to grow some share in consumer electronics: what to buy side of things”.

Internationally, UK is going strong and contributed significantly in the $2 million international revenues in Q2. We also launched operations in Japan and Korea. Asian countries are doing well…all of them are profitable. France and Germany remain sluggish, but we are doing re-structuring of those operations.

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