Artnet AG: Record Revenues And Strong Growth in Coronavirus Year 2020

- Artnet Auctions Increases Revenue by 26% in 2020

- Total Revenue Steady at 21.6 Million USD Despite Art Market Downturn

- Gross Profit Margin at 61.9 %

- Number of Visitors up by Around 40%

- Artnet Premieres ESG Report (Environmental, Social, Corporate Governance)

Berlin/New York, April 1, 2021- Berlin-based Artnet AG, the leading provider of art market data and online-only fine art auctions, achieved record auction sales in the financial year 2020, defying the pandemic-related weakness in the art market. Artnet Auctions' fee-based revenue increased 26% year-over-year to 4.9 million USD. Artnet, therefore, became the fourth biggest auction house in terms of online sales behind Sotheby's, Christie's and Phillips. "Despite all of the uncertainties, we did not cancel or postpone a single auction last year," said Jacob Pabst, CEO of Artnet AG. "Rather, we launched 70 auctions, sending a clear signal that our transaction platform for buying and selling art remains open and accessible - even in a stressed and challenging market environment." While Artnet set online auction revenue records, auction sales volume globally fell by 24% due to the COVID-19 pandemic.

Artnet's overall revenue held steady at 21.6 million USD in fiscal 2020 due to strong auction revenue, a decrease of just 1% from the record revenue in 2019. Growth at Artnet Auctions was offset by an expected decline in advertising revenue at Artnet News, despite a sharp increase in traffic. Advertising revenue fell 17% year-over-year to 4.5 million USD. Luxury goods manufacturers, loyal customers on Artnet News, generate the bulk of their revenues from their retail business, which slumped worldwide as a result of the pandemic. Advertisers in this sector and art businesses, therefore, significantly cut their marketing budgets in light of the economic downturn.

"Our diversified business model was vital to our resilience and will be key to the anticipated recovery in 2021," said CEO Pabst. "To be sure, the ongoing coronavirus crisis presents unique challenges for the industry. But it is accelerating the art market's digital transformation, which we have anticipated and led since our founding three decades ago. We already offer a broad range of digital products and innovations that are the industry standard."

The number of visitors (traffic) to the Artnet website in 2020 increased by 38% to 60 million visitors, an average of 5 million per month. Traffic is continuously growing in the current financial year as well.

Gallery Network revenue decreased by only 3% in 2020 to 4.8 million USD - despite the significant business challenges for many gallery members. Galleries turn to Artnet to boost their online presence by joining the Gallery Network. "To increase traffic for our gallery members, we have made short-term adjustments to the site that will result in more page visits and inquiries for Gallery Network members," said CEO Pabst.

Price Database revenue decreased slightly by 3% to 7.4 million USD in 2020. This was a robust result given the drastic downturn in the global auction market, where 20% fewer works were offered worldwide. A slowdown in auction activity generally reduces the demand for data research on the platform. The stable demand for auction data underscores the art market's trust in the Artnet brand and the need for price transparency in a volatile market environment. The number of auction results available in the Price Database exceeded 14 million for the first time.

For the current fiscal year, management expects continued strong growth in the Artnet Auctions segment. Market participants are exploring ways to make up for the previous year's decline in business. Due to its global reach, Artnet had repeatedly achieved record results in online auctions. The continuously positive trend in visitor numbers should lead to a rapid recovery in the ad business. For the Gallery Network, Management predicts a moderate revenue increase following a growing interest in memberships. Artnet has already witnessed a rise in demand in this segment over the past year, as it provides the platform for the market to recover more quickly. The fine art auction market's expected recovery will drive demand for auction data, leading to higher revenues in the Price Database segment. As a result, Artnet's Management forecasts an increase in revenues in all segments for the financial year 2021. Total revenue is expected to increase moderately to a range of 23.5 million USD to 24.5 million USD.

Artnet has been a pioneer in the art market for over 30 years. By reporting on ESG (Environmental, Social, Corporate Governance) initiatives for the first time, Artnet again takes the lead in continuing its principle of spearheading positive change and sustainable business practices.

In 2020, Artnet adopted an ESG strategy, defined key areas of responsibility, and set specific goals to be implemented by 2025. The strategy is based on a vision for a more sustainable art business, corporate responsibility, and social engagement. Artnet wants to create an environment where employees, clients and other stakeholders can sustainably pursue their interests.

The annual report for the financial year 2020 is available at artnet.com/investor-relations/annual-reports/

About Artnet

Artnet is the leading resource for buying, selling, and researching art online. Founded in 1989, Artnet's suite of industry-leading products has revolutionized the way people collect art today. The Price Database contains more than 14 million auction results from 1,900 auction houses dating back to 1985, providing an unparalleled level of transparency to the art market. The Gallery Network platform connects leading galleries with collectors from around the world, offering the most comprehensive overview of artworks for sale. Artnet Auctions was the first dedicated online marketplace for fine art, providing a seamless and efficient collecting experience for both 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.

Artnet AG is listed in the Prime Standard of the Frankfurt Stock Exchange, the segment with the highest transparency standards.

ISIN: DE000A1K0375

LEI: 391200SHGPEDTRIC0X31

Contact: Sophie Neuendorf , [email protected]