Sotheby’s earns net income worth $161 million in 2010

Auction house Sotheby’s noted its financial results for 2010 ending with profits worth $161 million from a loss of $6.5 million one year ago, and which the auction house reports to be its ‘best yearly result ever, apart from 2007’. Total revenues increased 60 percent to $774.3 million in the year, while operating income rose 415 percent to $274 million. Jewellery sales valued $405 million, which was a record for the company. Consolidated sales stood at $2 billion.

EBITDA margin was 37.2 percent which is 200 basis points higher than in 2007. The company attributes much of its boost in sales to revived economy, a focus on cost discipline and margin management. the company held a lower risk profile in 2010 as compared to 2006 and 2007.

In the fourth quarter ending December 31, 2010, revenues increased 45 percent to $317.9 million and profit increased by 31 percent to $96.2 million.