Steady Performance amid Challenging Market Conditions

Artnet AG Annual Report 2023: Steady Performance amid Challenging Market Conditions

New York/Berlin, August 31, 2024: Artnet AG, the leading online marketplace and information provider for the art market, today published its annual report for the 2023 fiscal year. Total revenue saw a minimal decrease of 7% to EUR 23.35 million (or in USD a 4% decrease of 1,064k) relative to a significant overall art market decline of 42% in the 2024 financial year. Artnet was able to minimize the downward impact of a depressed art market via stable results for its Media and Data segments, underscoring the stabilizing effects of its diversified revenue profile.

Net Profit (EBIT) for 2023 was EUR -1.9 million. The negative overall result is primarily due to lower than expected performance in the Marketplace segment and a significant decrease in capitalization of technology development costs."Our diversified business model is crucial for our resilience and the key to steady growth in the current fiscal year," said Jacob Pabst, CEO of Artnet, during the announcement of the figures.

In the Media segment, Artnet recorded a slight revenue decline of 2% to EUR 8.6 million. Artnet News remains the primary source for art market news, with over 140 million page views. Artnet News Pro also provides an additional revenue stream through a partial paywall subscription model. In total, Artnet saw strong traffic across all its domains, reaching over 238 million page views, making it the most visited website in the art industry.

In the Marketplace segment, Artnet experienced a revenue decline due to strong market headwinds affecting auction houses and galleries. Total revenue in the marketplace segment decreased by 13% to EUR 8.026 million. Despite this, average transaction values at Artnet Auctions increased by 7% year-over-year to USD 14,108 (EUR 12,780) indicating the growing viability of online auctions and the potential for future margin generation in this segment. Despite the weaker than expected performance in 2023, Artnet Auctions remained the fourth-largest auction house in terms of online sales, behind Sotheby's, Christie's, and Phillips. Galleries subscriptions remained relatively stable in 2023, signifying strong product stickiness even in difficult market conditions.

Revenue in the Data segment decreased by 5% to EUR 6.722 million in 2023. This development reflects an overall 12.7% sales decrease at auction houses globally in 2023. Artnet released the new Price Database, built on anAPI-first architecture, offering opportunities for entirely new data delivery formats and opening the product up to pricing augmentations that will drive future revenues.

In addition to the complete overhaul of the price database, Artnet has completed several key platform improvements, which are expected to positively impact revenue as early as 2024. A unified navigation system, a complete revamp of Artnet News, and the redesign of key pages will not only significantly enhance the user experience of the Artnet platform but also help realize the synergies between the three segments: data, media, and marketplace.

Artnet adopted stringent ESG reporting standards in 2020, defining key areas of responsibility and setting specific goals. The 2023 annual report includes Artnet's voluntary ESG report for 2023. The group's strategy is based on a vision for a more sustainable art business, corporate responsibility, and social engagement. With its reporting on ESG initiatives, Artnet once again takes a leading role, continuing its commitment to driving positive change and promoting sustainable business practices.

The annual report for the 2023 fiscal year is available here.

For more news and releases on investor relations, visit here.

About Artnet

Artnet has an unparalleled 60 million users annually, making it the largest global platform for fine art. Founded in 1989, Artnet has revolutionized the way people discover, research, and collect art today. Artnet’s Data provides mission-critical resources for the art industry, encompassing more than 17 million auction results and AI- and ML-driven analytics, further driving transparency and insight into the art market. Artnet’s marketplace connects leading galleries and auction houses with its global audience, offering a curated selection of over 250,000 artworks for sale worldwide. Artnet Auctions, the pioneering online-only auction platform, offers unprecedented reach, liquidity, and efficiency for buyers and sellers. Artnet News covers the events, trends, and people shaping the global art market with up-to-the-minute analysis and expert commentary. It is the single most-read news publication in the fine art industry, with a rapidly growing, dedicated audience. Together, Artnet’s broad synergistic product offering provides a comprehensive ecosystem that drives and informs the modern art market.

Artnet AG is listed in the Prime Standard of the Frankfurt Stock Exchange, the segment with the highest transparency standards. The majority of operations are headquartered in New York at its  wholly-owned subsidiary, Artnet Worldwide Corporation, a New York based entity founded in 1989. Artnet Worldwide Corp. owns a London based subsidiary, Artnet UK Ltd.

ISIN: DE000A1K0375

LEI: 391200SHGPEDTRIC0X31

Contact:

Sophie Neuendorf

sneuendorf@artnet.com