Teamtalk posts negative margin for Q3
- Added:
- Feb 28, 2001
Teamtalk attributed the reversal of gross profits to increased cost of sales and administrative expenses, which have risen by 17% and 13% respectively over the third quarter.
A downturn in revenues for the third quarter, falling by 4% to 2.4m, has left Teamtalk with a negative profit margin of -8%, as opposed to the positive margin of 9% in the previous quarter, when it showed a gross profit of 0.2m, and 0.7m of gross profits in the first quarter of the year.
The higher costs have been generated by a full quarter of internetsoccer.com, coupled with the opening of a Stockholm office, said the company.
Overall losses for the company were 2.4m for the third quarter, widening considerably on the quarter ended 30 September 2000, where it made a loss of 1.5m.
Turnover from the company's sports division fell by 0.2m over the quarter, blamed by Teamtalk on fewer audiotext calls because of the start of football season, and the detrimental effect of adverse weather conditions on racing.
However, the maritime services section of the company, which was launched in the second quarter, experienced a growth in turnover of 0.8m on the previous quarter, as Teamtalk installed its “Internet on Board” product on six cruise ships. The company plans one further installation before the end of the financial year.
The acquisition of RacingOne on 22 December cost Teamtalk 0.7m, and this cost will be followed by others in the final quarter results as the purchases in 2001 of Racing Research and MMC Sport-Redaktion GmbH come onto the books.
Shares in Teamtalk have remained unmoved at 20p today.