Sotheby’s Q3 Reflects Slower Auction Sales, Higher Private Sale Commissions

Sotheby’s Q3 Earnings are out and the big news is the rise in private sales and finance revenues. Net auction sales are down 16% ytd.

• Total Revenues Increase 18% in the Third Quarter

• Private Sale Commission Revenues Increase 50% in the Quarter

For the nine months ended September 30, 2012, Sotheby’s net income declined $57.7 million, or 58%, when compared to the prior year. This decrease is primarily due to lower auction commission revenues resulting from a $433.5 million, or 16%, reduction in Net Auction Sales, compared to a 2011 period with an historically unprecedented level of single owner sales. The decline in year-to-date auction commission revenues is partially offset by an $8.2 million, or 17%, increase in private sale commission revenues and a $6.4 million decrease in Dealer Segment inventory writedowns, as well as $4.5 million of charges recorded in 2011 from restructuring actions to streamline Sotheby’s European selling operations.

Related posts:

1. Sotheby’s Income Drops 33% Year Over Year in Q2
2. Skate’s: Private Dealing Generates Lower Commissions for Sotheby’s
3. Christie’s Releases Record First Half at £2.2bn ($3.5m); Private Sales Jump 53%; Contemporary Art Up 34%; Old Masters, 50%
4. Private Sales & Internet Bidding Up; US Sales Down at Christie's in 2011 So Far
5. France Opens the Gates to Auction House Private Sales