Art market recovery?
Sotheby's revealed its first quarter earnings on May 6th with the figures showing that revenue had grown by 87 per cent to $101.9 million (£69 million)Operating expenses had also declined by 14 per cent while the net loss of $2.2 million (£1.5 million) was an improvement on last year by 94 per cent.
Bill Ruprecht, president and chief executive of Sotheby's, said: "The renewed art market momentum that began last autumn continued into the first quarter and we are delighted with our results."
He added that the auction house would continue to focus on auction commission margins, expense control and improved operating results.
The growth in profit could be due to the 117 per cent increase in auction commission revenues. This was due to the strong impressionist and modern art sale held in February which saw revenues improve by 243 per cent on the previous year.
Higher valued items became more popular in the first quarter and arguments for the recovery of the art market can be supported by the establishment of a new auction world record.
Picasso's Nude, Green leaves and Bust sold for $106.5 million (£72 million) on May 4th and became the most expensive painting ever bought at auction.
Posted by Ophelia Weston.
