SportsLine.com "exceeded analysts expectations and lost
less money than expected" for its fiscal third quarter ended
September 30, while "breaking records in advertising
revenues and visitors to its site," according to Christine
Winter of the Ft. Lauderdale SUN-SENTINEL. Advertising
accounted for a "record" $20.9M, or 78% of the company's
consolidated revenues for the quarter, up 168% from $7.8M in
the same quarter in '99. However, SportsLine.com "was
forced to take" a $114.3M noncash write-down of Internet
investments, primarily for the "struggling" MVP.com, to
"bring them in line with current fair market value." For
the quarter, SportsLine.com reported a consolidated net loss
of $16.3M, or $0.62 per share, compared to a loss of $16M,
or $0.69 per share, in the same quarter in '99. Including
the write-down of Internet investments, the company's net
loss for the quarter was $130.5M, or $4.94 per share.
Consolidated revenues increased 132% to $26.7M in the
quarter, compared to $11.5M in the same quarter in '99.
LEVY ON MVP.COM: Winter reports that MVP.com paid
SportsLine.com $13M for the year, but "is late on its
fourth-quarter payment," and the companies are "negotiating
a restructured payment plan." SportsLine.com CEO Mike Levy
said that he "will seek a new partner for its e-commerce
activities if MVP.com is unable to come up with more
funding." Levy added that SportsLine.com "would not make
any major cash contributions" to MVP.com. PaineWebber
analyst Chris Dixon: "Of course the write-down with MVP.com
was disappointing, but overall, Sportsline.com is doing very
well" (Ft. Lauderdale SUN-SENTINEL, 10/20). In Chicago,
David Roeder writes that MVP.com "is having trouble
surviving its rookie season," as the company has missed a
debt payment to SportsLine.com and "is negotiating for
additional cash from two venture capital firms." Company
spokesperson Paula Davis said that negotiations "are being
held" with principal backers Benchmark Capital and Freeman
Spogli & Co. Roeder adds that MVP.com has "shelved its own
plans for an" IPO (CHICAGO SUN-TIMES, 10/20).
