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Global Sports has record revenue in Q2

Global Sports has record revenue in Q2

NOAH LIBERMAN

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Global Sports followed its publicly held sports Web brethren in announcing record revenue for the second quarter. Its $7.8 million in revenue is a 37 percent increase over the first quarter of this year. The company was not engaged in e-commerce a year ago and had no corresponding numbers to report. Pro forma net loss was $11.2 million, a 1 percent improvement over the first quarter. That corresponded to a loss of 54 cents a share, compared with a 61 cent loss in the first quarter.

In recent weeks SportsLine.com Inc., Fogdog and Quokka Sports have announced record revenue. Direct competitor Fogdog had $5.8 million in revenue in the second quarter, up 24 percent from the first quarter, and its net loss was $12 million, or 33 cents a share, compared to $9.8 million in the first quarter, or 27 cents per share.

Global Sports executives projected that the company needed to gross between $30 million and $40 million in a quarter to break even. They have moved forward their projected break-even point to late 2001, from the second half of 2002.

Global, which acts as a Web interface and fulfillment center for roughly a dozen partners, touts its advertising economies as a strong suit, as it can piggyback with partners such as thesportsauthority.com, foxsports.com and buy.com. It spent $3.5 million on advertising in the quarter — roughly half what fogdog.com spent — and expects to spend about $2 million next quarter.

CEO Michael Rubin pointed to ad-based initiatives that paid off in the quarter, namely its integration into the newspaper advertising of its partners, specifically the inclusion of identification numbers for items that have contributed to "low double-digit" conversion rates with customers who visited the sites to view the items.

During the quarter, Global launched the sporting goods sections of bluelight.com (Kmart's online arm), oshmans.com and the initial phase of Broadband Sports' store. It has recently announced deals with buy.com, foxsports.com and the sportsrus.com store at toysrus.com.

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