In summary, Sotheby's had first half 2011 sales of $3.4 billion, a record for the company. Sotheby's had record first half revenues of $489.4 million, and the highest ever quarterly net income of $127.2 million in the second quarter. If you recall, 2010 results were strong for Sotheby's, but for the first 6 months of 2011 the net income was up 54% when compared to the first 6 months of 2010. Sotheby's attributes the increases to higher auction and private commission revenues, although the margins were down slightly. Operating expenses were also up by 28% when compared to last years first half results, showing the auction house's willingness to spend when necessary to support both auction and private sales divisions.
Sotheby's stated the following about the record results
“This is the best quarter in Sotheby’s history,” said Bill Ruprecht, President and Chief Executive Officer. “Great works of art are enormously desirable to collectors from every corner of the world right now. Our operating metrics, in terms of earnings and EBITDA margins3 , are at historic levels, and we continue to enjoy great opportunity in both traditional as well as newer market environments.
Mr. Ruprecht continued: “Record first half consolidated sales (up by 44%) reflected the surge of activity from buyers and sellers across China as well as significant increases in auction sales in each of our four principal selling centers. Private sales, up 114% in the half, were another important contributor to these outstanding results. As I look back on these extraordinary six months for our business, the global appeal of art was one of the few constants in a period of continued economic uncertainty.
“An exciting fall season is already taking shape and our clients around the world can expect a number of wonderful sales and objects at Sotheby’s this autumn,” concluded Mr. Ruprecht.
Sotheby’s London sales included some tremendous successes. Exceptional sales of Contemporary Art surpassed the high estimate and brought $174 million and $206 million for the evening and series, respectively, with the superb Duerckheim Collection contributing almost $100 million to that result. The Impressionist and Modern Art sales series achieved a combined $181 million, comfortably within the presale estimate and included the highest price of the London Impressionist week when Egon Schiele’s 1914 Cityscape Hauser mit bunter Waesche (Vorstadt II)/ Houses with Laundry (Suburb II) sold for $40 million, almost double the previous record for the artist at auction.
Our Old Master and British Paintings Evening Sale in July achieved $76.5 million and included the second highest price for any work of art sold at auction thus far this year. Achieving that distinction was Guardi’s Venice, a View of the Rialto Bridge, Looking North, from the Fondamenta del Carbon, which sold for $42.9 million, becoming the second highest price ever achieved for an Old Master Painting at auction.
Click HERE to download the full press release and earnings report from Sotheby's.
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