Tickets.com Reports Loss For 4th Quarter And Year

A leading ticketing services provider for live events, reported financial results for the fourth quarter ending December 31, 2001. The company also secured $20 million in financing from existing investor General Atlantic Partners, to fund future growth and working capital needs, announced Tickets.com CEO, Ron Bension.

Driven by a combination of cancelled events and attendance drop-off precipitated by the September 11th tragedy, net revenues in the fourth quarter of 2001 fell 36.6 percent to $9.7 million from $15.3 million in the same quarter a year ago. For the full year, the company reported net revenues of $56.1 million, which represents a 4.4 percent decrease to the prior year's figure of $58.7 million.

The company's fourth quarter results were impacted by the fallout from the September 11th attacks. Cancelled events and poor attendance at those events that were held, significantly reduced the company's earnings for the quarter. Throughout the difficult economic environment of the fourth quarter, however, the company has maintained its ongoing focus on reducing its overall cost structure. The Q4 results demonstrate a continuation of a process to build the pipeline for top-line growth while concurrently reducing costs and enhancing efficiency at all levels.

Tickets.com's business philosophy has enabled the company to remain flexible while aggressively developing new technology to better attract and service clients. Specifically the company now provides a suite of services including their unique private label software, Internet ticketing solutions and complete outsourcing services. This technology is currently being utilized by 20 of the 30 Major League baseball teams and some the industry's most prestigious entertainment and sports venues, including some new additions, the renowned 9:30 Club, the Greensboro Coliseum and the Mohegan Sun casino.

At the end of the fourth quarter, Tickets.com announced the hiring of Ron Bension, a seasoned recreational entertainment executive as CEO. Bension's extensive experience uniquely qualifies him to lead the company as it enters the next phase of its business cycle. "Although our business experienced reduced revenue due to the widespread effect of September 11, we remain confident in continued growth and to providing the best ticketing service, technology and state of the art functionality for clients," said Bension. "This financing further demonstrates the confidence that our investors have in our business model and the potential it represents in 2002 and beyond."

Due to the impact of September 11th and the capital required to bring on-line several major new clients signed in the quarter, the company projected the need for additional funding to support future operations. This new round of financing will address the short-term working capital requirements and provide the company with significant funding to continue its growth.

"Despite the challenging business environment in Q4 and its impact on the performance of Tickets.com, we are pleased to deepen our relationship with the company" said Braden Kelly, partner at General Atlantic Partners. "We believe Tickets.com has the leadership, assets, and long-term orientation required to create continued innovation in the ticketing industry and build an attractive business. The company's intense focus on driving customer satisfaction is consistent with our philosophy of how great businesses are built."

Driven by a combination of cancelled events and attendance drop-off precipitated by the September 11th tragedy, net revenues in the fourth quarter of 2001 fell 36.6 percent to $9.7 million from $15.3 million in the same quarter a year ago. For the full year, the company reported net revenues of $56.1 million, which represents a 4.4 percent decrease to the prior year's figure of $58.7 million.