SportsLine.com, Inc. posted a loss of $23.8 million for the first quarter of 2001, and revealed plans to cut its workforce by 15-20%.
The net loss of $23.8 million, or $0.89 per share, for the quarter, compared to a pro forma consolidated net loss of $21.9 million, or $0.85 per share, in the same period last year. SportsLine cited the economic downturn - particularly the ad market - as the motivation for the job cutbacks.
These cost-saving initiatives, including marketing cutbacks, are supposed to bring SportsLine.com $8 to $10 million in savings on an annualized basis. As a result, the company says it expects to record a one-time charge in the second quarter of 2001 of approximately $2 to $3 million.
Revenues for the CBS SportsLine parent increased 50% to $22.3 million in the first quarter of 2001, compared to pro forma consolidated revenue of $14.8 million in the same quarter of 2000. Domestic EBITDA (operating loss excluding depreciation and amortization expense) loss for the quarter was $5.3 million, a 43% improvement from the pro forma domestic EBITDA loss of $9.1 million in the first quarter of 2000.
SportsLine claims traffic to its site during the NCAA March Madness season averaged approximately 25.2 million daily page views, more than double the March 2000 average of approximately 12 million daily page views.
- Richard Tedesco
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