Media technology company CNET Networks just issued their 3rd Quarter 2007 earnings. First, the numbers. Net losses grew to $16.6 million, or $0.11 per share, from $2.3 million, or $0.02 per share, last yeart. Revenue grew $99.5 million, from $93.3 million in the same period a year earlier. Adjusted earnings were $6.9 million or 4 cents a share. That beat analysts projections by one cent. They projected revenues and earnings for the fourth quarter at $119-$125 million.
The company lost on photo-sharing site Webshots which they purchased in 2004 for $70 million. They sold the company to American Greetings for $45M. They acquired a site in China named OnlyLady, a women’s fashion site with a strong advertiser base from the likes of Loreal, Estee Lauder, LVMH, Channel, Johnson & Johnson, and Nike.
The most interesting quote though is about how the company is how CNET views bloggers – which they say perception is overblown and not based in reality:
“While others in the blogging community have anointed themselves as CNET competitors, the reality is that CNET is 20 to 50 times the size of any of those. CNET added more users in a month than the audience Engadget and Gizmodo combined have in total. So we have a major perception and reality gap between what is actually going on and what people attempt to benefit from saying what’s going on. The practical reality is that CNET is materially bigger than anyone who claims to be competing with us, and as a result, materially more effective. We build brands that move industries.”
- Neil Ashe, CEO of CNET