Net Loss of €1.1 million From Oct. 30 Through Dec. 31
Axel Springer's 2015 Annual Report on Thursday shed light on the financial progress of Business Insider, the New York-based digital media site it purchased in October.
From Oct. 30 through Dec. 31, B.I. generated revenue of €9.4 million (about $10.2 million based on average exchange rates for that period) and a net loss of €1.1 million (about $1.2 million), the report said.
According to the report, had B.I. been part of Axel Springer since the beginning of 2015, it would have lost the company €10.8 million (about $12.0 million based on average exchange rates in 2015) in consolidated net income on consolidated revenue of €38.5 million (about $42.8 million).
An accompanying presentation said B.I.'s revenue increased 41% in 2015.
Germany's Axel Springer, which has invested in several U.S.-based digital media companies, including NowThis and Thrillist Media Group, sees B.I. as a great growth opportunity.
"The medium-term planning of Business Insider is based on the assumption that the revenues will grow significantly," Axel Springer said in the report. "This growth shall predominantly be triggered by the further development of the Business Insider brand portfolio (e.g. Tech Insider, Insider), the extension of the fee-based market research offering ('BI Intelligence') and the expansion into new international markets."
B.I. has long been expected to begin licensing more of its content, beyond the company's BI Intelligence service, in an effort to generate additional revenue. It's not clear yet what form that will take, and when it will be implemented....MORE