Getty Images Continues to Disappoint

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Getty touts its plan to turn revenue around [Seattle Post Intelligencer]

Summary: Getty Images, the world's leading supplier of stock photography, has announced a Q3 profit of $37.6 million, or 62 cents per share, compared with $39 million, or 60 cents per share, in the same quarter of 2005. The figure failed to meet the company's own expectations and continues a grim trend Getty has been suffering throughout 2006. The stock, which was trading above $90 in January, hit a 52-week low of $41.93 in after-hours trading yesterday. The company is suffering from increased competition as well as shifts in the image needs of ad agencies, publishers and the media. In response, Getty plans to invest heavily in its film business and also to downsize staff at its three offices (London, New York and Seattle). It is also planning to restructure its sales organization to cater more to the preferences of its clients.
Related links: Getty Images Q3 2006 Earnings Call Transcript • Getty Images Cutting Staff • Getty Images Profit Falls, Outlook Cut [Reuters]
Potentially impacted stocks and ETFs: Getty Images (GYI), Jupiter Media (JUPM)

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