Modem Media Reveals Extent of Losses

19 March 2001

Norwalk, Connecticut-based internet agency Modem Media has at last published its delayed trading figures for Q4 2000, long awaited by 45% stockholder True North Communications in order to finalize its own results for 2000 [WAMN: 13-Mar-01].

The web shop posted a net loss of $61.7 million for the quarter to December 31, compared with earnings of $1.6m for the same period in 1999. Full year results stood at a negative $74.2m versus a surplus of $3m in the preceding year.

A significant one-off cash charge of $52.8m distorted Modem’s results. This reflected the "goodwill remaining from the Vivid [Studios] acquisition, totalling $52.8 million, [which] is fully impaired and cannot be recovered from expected future cash flows."

The extent to which this will impact on the 2000 performance of True North [see lead story] is not yet certain.

News source: Advertising Age - Interactive Daily