Displaying items by tag: revenue

Sotheby’s is offering employees voluntary buyouts to cut costs after a drop in third-quarter revenue grabbed more attention from the company’s investors than its largest ever semiannual auction season.

The auction house told employees in an e-mail Friday that if not enough employees make use of the buyouts, it may have to resort to layoffs. Sotheby’s didn’t say how many jobs it plans to cut.

In 2013, New York’s Metropolitan Museum of Art sold 3,290 objects worth a total of $5.4 million -- the institution’s highest revenue from such sales in eight years. So far, $3 million worth of paintings have been sold in 2014.

The works, which were offered at auction, previously resided in the museum’s storage facility. In 2013, the Met reported a $4.4 million operating deficit, which was said to be caused by Hurricane Sandy and other factors. The institution stated that the proceeds from the sales did not go toward its debt. Rather, the museum sold the works to refine its collection and to make room for future acquisitions. Museums are forbidden by the state Board of Regents from selling artworks in order to fund operating costs.

The Met sold Old Master paintings, Renaissance works, and clothing and accessories from its Costume Institute. The museum currently owns upward of 1.5 million objects.

Three exhibitions at the Metropolitan Museum of Art this spring/summer season – Impressionism, Fashion and Modernity; Punk: Chaos to Couture; and The Roof Garden Commission: Imran Qureshi – generated approximately $742 million in spending by regional, national and international tourists to New York according to a visitor survey conducted by the museum. Using the industry standard for calculating tax revenue impact, the study found that the direct tax benefit to the City and State from out-of-town visitors to the Met totaled about $74.2 million.

Thomas P. Campbell, Director and CEO of the Met, said, “It is particularly gratifying to see that visitors from around the globe continue to respond enthusiastically to the Met’s diverse exhibitions and renowned permanent collection.” The Met is the most-visited cultural attraction in New York City and 54% of travelers cited visiting the Met as a motivating factor in planning a trip to New York.

In November 2012, two members of the Metropolitan Museum of Art in New York sued the institution for making the public think that the suggested admission fees are mandatory. The historically free institution suggests entry fees of $25 for adults and less for seniors and students.

Theodore Grunewald and Patricia Nicholson filed the suit in state court in Manhattan and said that the museum’s fee policy lacks transparency. They also argued that the museum fails to note that the fee is suggested on several of its websites and that it’s only in fine and barely legible print on signs near cash registers. A statute was put in place in 1893 declaring that the Met must remain free in order to continue receiving government funding. Grunewald and Nicholson commissioned a survey of visitors to the museum and found that 85% of patrons believed they had to pay to gain entry.

According to court papers filed by Gerald Lee Jones, who worked at the Met as a floor manager from 2007 until 2011, cashiers were paid in part based on how much they collected from admission fees. The statement, which was filed in late June 2013, also suggested that cashiers were instructed to never volunteer that patrons may pay less than the “recommended” fee.

Harold Holzer, the Met’s senior vice president for public affairs, said that Jones, “one of the many floor managers” had a “glib spin on his experience [at the museum].” Holzer also asserted that the Met tracks how much the cashiers collect because auditors require admission figures. “It has nothing to do with performance evaluation or salary,” said Holzer, adding “The Met will offer its response in due course.”

During the year ending in June 2012, the Met brought in $37.8 million in admissions, about 16% of the museum’s revenue.

In November 2012, two members of the Metropolitan Museum of Art in New York sued the institution for deceiving the public by making patrons think that the suggested admission fees are mandatory. The historically free institution suggests entry fees of $25 for adults and less for seniors and students.

Theodore Grunewald and Patricia Nicholson files the suit in state court in Manhattan and said that the museum’s fee policy lacks transparency. They also argued that the museum fails to note that the fee is suggested on several of its websites and that it’s only in fine and barely legible print on signs near cash registers. A statute was put in place in 1893 declaring that the Met must remain free in order to continue receiving government funding. Grunewald and Nicholson commissioned a survey of visitors to the museum and found that 85% of patrons believed they had to pay to gain entry.

According to court papers filed by Gerald Lee Jones, who worked at the Met as a floor manager from 2007 until 2011, cashiers were trained to deceive visitors and they were paid in part based on how much they collected from admission fees. The statement, which was filed in late June 2013, also suggested that cashiers were instructed to never volunteer that patrons may pay less than the “recommended” fee.

During the year ending in June 2012, the Met brought in $37.8 million in admissions, about 16% of the museum’s revenue.

Sotheby’s announced its financial results for the first quarter of 2013, which ended March 31. The auction house’s first quarter total revenues were $101.7 million, a $3.2 million decrease from 2012. The decline was mainly caused by a reduction in auction commission margin from 18.1% to 15%. However, the quarter’s net auction sales increased 23% compared to last year’s first quarter.

High-grossing categories, including Impressionism as well a Modern and Contemporary Art, remained highly competitive. In an effort to enhance revenue and strengthen auction commission margins, Sotheby’s changed its buyer’s premiums structure rate on March 15, 2013. Buyers now pay 25% on the first $100,000 of a work’s selling price; 20% on the portion of the price above $100,000 but under $2 million; and 12% on any remaining amount about $2 million. Since most sales for the first quarter of 2013 took place before this shift occurred, it did not have a substantial impact on Sotheby’s results for the first quarter of 2013.

Due to the nature of the auction seasons, first and third quarters tend to bring in lower revenues than the second and fourth quarters. Typically, first quarter results are not an accurate gauge of expected full year results. Sotheby’s Chairman, President and CEO Bill Ruprecht said, “The first quarter showed a solid increase in auction sales compared to the prior year, but the results illustrate how competitive the market is for the highest value consignments. That competition resulted in lower commission margins, which is reflected on the bottom line.”

After two years in beta, Art.sy’s public version went live this past Monday. Using intuitive sites such as Pandora and Netflix as guides, Art.sy gets to know its users and presents them with suggestions and recommendations based on their individual likes and dislikes. Art.sy offers a free repository of 20,000 and counting digitized fine art images as well as an art appreciation guide. Art.sy can already count 275 galleries, private collectors, and 50 museums such as the Dallas Museum of Art, SFMoMA, and Fondation Beyeler as partners.

A start-up backed by millions of dollars in venture capital from art world giants such as Larry Gagosian and Dasha Zhukova, Art.sy already has 600,000 registered users. The site is moving past mere image sharing and has begun partnering with major art fairs, serving as the exclusive online platform for Design Miami/ in December and the Armory Show in March.

Art.sy offers a unique experience to collectors, allowing them to speak with a specialist, connect directly to a gallery, or submit offers on works remotely. A different feature on the site will allow collectors to buy outright as long as the dealer chooses to utilize the e-commerce option. Art.sy plans to bring in most of its revenue from sales commissions on works sold through the site.

While Sotheby's did report record breaking sales during their second quarter and first half that ended June 30, 2012, their overall revenues have decreased from the previous year. "Our operating results reflect some tremendous successes, but also reflect the challenging global economy, a tough comparison to the best quarter in Sotheby's history a year ago," said Bill Ruprecht, Sotheby's President and Chief Executive Officer.

Sotheby's report stated that their second quarter net income was $85.4 million, a 33% decrease from 2011 and total revenues hit $303.9 million, down 18% from last year. For the six months that ended June 30th, Sotheby's reported a net income of $74.8 million, a decrease of 42%, and total revenues came in at $408.9 million, down 16% from 2011. Although there has been a slowdown in the Asian market, Ruprecht says, "art appears to remain an attracting asset for collectors and out consignment pipeline for the Autumn season is very active at the moment."

A testament to that hunch is the world record-breaking sale of Edvard Munch's The Scream. Sold for $119.9 million at the Impressionist and Modern Evening Sale in New York in May, the Evening Sale totaled $330.6 million, Sotheby's highest ever total for an Impressionist and Modern Art Worldwide Sale. It was the second highest total for a Sotheby's auction in any category.

Other big sales included one of Andy Warhol's last self-portraits and Flowers, both of which sold from the collection of the late photographer, Gunter Sachs, for $8.5 million and $5.9 million, respectively, in a May auction London. Joan Miro's Peinture (Etoile Bleue) sold for $36.9 million, a record for the artist at auction, at Sotheby's June London sale. Also highlighting the Impressionist and Modern Art sales was Pablo Picasso's late portrait, Homme Assis, which brought in $9.7 million. The June London Contemporary Art series also fared well, bringing in a total of $129.7 million. The top lot was Jean-Michel Basquiat's Warrior which sold for $8.7 million, nearly double the amount it acheived at auction five years ago.