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GO.com Reports Strong First Quarter Results, Internet Revenues Surge 47%

Strategic Insights

— 1 min read

GO.com, a division of The Walt Disney Company, announced its first quarter results for the period ended December 31, 1999. On a pro forma basis, the company reported a total increase in revenues of 13% to $125.6 million, driven by a 47% surge in Internet revenues. The growth was largely attributed to the success of GO.com's commerce and media activities, particularly in the areas of DisneyStore.com and ESPN.com. Despite a 15% decrease in Direct Marketing revenues, the company's overall financial performance was encouraging, with GO.com's chairman, Steven M. Bornstein, expressing optimism about the company's future prospects.

Key Takeaways:

  • Internet revenues increased by 47% to $72.8 million, driven by growth in commerce and media activity, with commerce revenues rising 152% to $20.4 million.
  • The average number of orders per month across GO.com's commerce sites increased by 242%, due in part to a strong holiday season.
  • Media revenues grew by 26% to $52.4 million, reflecting higher advertising and sponsorship revenues, driven by increased advertiser demand and higher online site traffic.
  • Direct Marketing revenues decreased by 15% to $52.8 million, due to lower catalog response rates.
  • GO.com's operating loss increased from $28.2 million to $82.6 million, driven by higher sales and marketing expenditures and increased investment in Internet and Direct Marketing operations.
  • The company plans to continue its focus on developing engaging and innovative programming in the family, sports, entertainment, and news categories.

Statistics:

  • Internet revenues: $72.8 million (47% increase)
  • Commerce revenues: $20.4 million (152% increase)
  • Media revenues: $52.4 million (26% increase)
  • Direct Marketing revenues: $52.8 million (15% decrease)
  • Operating loss: $82.6 million (pro forma)
  • Amortization of intangible assets: $233.2 million (pro forma)

Sources:

  • Business Editors, NORTH HOLLYWOOD, Calif.--(BUSINESS WIRE)--February 9, 2000
  • GO.com's Investor Relations Web site: http://www.disney.go.com/investors

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