Revenues for Sotheby's dips by 48%

Sotheby's noted a 48 percent decrease in its second-quarter revenues to $167.3 million, as compared to the same period last year. The company attributed the decrease to the slowdown in the economy and subsequently in the international art market. Net income dipped by 87 percent to $12.2 million in the said period. During the three months, its commission margins rose by 620 basis points, to 21.3 percent, as it reworked its sales and revenue structures.

The rise of commission margins resulted in an incremental $39.3 million or valued 24 percent of total revenues. The firm believes its performance has responded well to the economic downturn. For the year 2009, the firm plans to reduce its costs by $160 million.

Apart from conserving expenses, the firm is soon expecting a $150 million revolving credit facility from GE Capital, for three years, to place it on a strong grounds.