The auction house Sotheby's reported that its revenues for the 2012 fiscal year decreased by 8% on a year-on-year basis, amounting to $ 768.5 million, reports Rapaport. The decline in revenues is explained by the reduction in the commission amount by 11%, caused by a corresponding decrease in auction sales by 10%.
Sotheby's net profit fell 37%, to $ 108.3 million, or $ 1.57 per diluted share.
Before the end of the financial year, Sotheby's refinanced its long-term debt until 2022, as a result of having registered additional costs of $ 15 million. However, refinancing the debt will allow the auction house to cut funding costs by about $ 5 million a year from 2014 onwards.
"The indicators of consolidated sales in 2012 were quite high - at $ 5.4 billion, which is caused by a lot of excitement at the auction of works of art around the world," said Sotheby's chairman Bill Ruprecht. "Our operating results reflect a number of significant achievements, but the previous year was one of the best in the history of the auction house, so the comparative figures look clearly dim; In addition, the reporting period was marked by high competition. In general, I remain optimistic about the prospects for the development of the market. "
Earlier this year, Sotheby's announced that the revenue of its jewelry division in 2012 reached a record figure of $ 460.5 million, which is due to the successful sale of private collections, exceptional diamonds and precious stones, jewelry of historical significance and impressive provenance.