MyPoints.com, the online incentives marketer, yesterday reported losses for 2000 of $75 million - over double its $37.4m loss in 1999. Q4 revenues, although a 9% improvement on the preceding year, remained at almost the same level as Q3.
The company’s portfolio of marketing clients remains steady, although this did not deter stockbroker Lazard Freres from reducing its 2001 income projections for MyPoints from $74m to $51m, a decrease on the $63.5m recorded in 2000.
Toeing the currently fashionable Cassandra line, Lazard described MyPoints’ future as ‘uncertain’, opining that it will have difficulty in generating more revenue and breaking even – a view some observers see as a self-fulfilling prophesy of doom, with ironic echoes of the e-euphoria whipped up by Wall Street, Frankfurt and London’s City in 1999.
MyPoints stock closed at just under $1.50 yesterday, a massive plunge from its 52-week high of $70.50.
News source: Advertising Age - Interactive Daily