Online auctioneer ATG posts revenue growth as Brits unlock value of art and antiques
London-based Auction Technology Group (ATG) has recorded increased revenue due to higher appetite for art and antiques.
In the first half of the year, the online auction marketplace recorded total revenue of $86m (£69m), up six per cent year-on-year and up one per cent on an organic basis.
It said this growth was due to a 17 per cent rise in revenue from art and antiques, as well as a strong performance from its recent acquisition of Estatesales.net (ESN), a US estate sales listing site.
In February 2023, ATG bought the ESN platform which both corporate estate sale companies and private customers use to advertise unique second-hand items.
At the time, ATG chief executive John-Paul Savant, said: “As a leading US estate sale listing site, EstateSales.NET is a natural fit for ATG as we unlock further areas of value within the secondary goods market and facilitate another part of the circular economy.”
But shares tumbled 13 per cent on Tuesday at market open. Investors might be nervous as ATG said it expects its adjusted earnings before tax margin will be 46 per cent because it is generating more sales from its less profitable services.
Also, industrial and commercial revenue declined two per cent to $35.2m (£28.4m).
ATG expects its full year revenue to be between $175m and $180m, equivalent to revenue growth of between two and five per cent.
“Revenue growth in the second half of FY24 will be driven by the continued growth in value-added services, less challenging comparatives for the upcoming period, and encouraging trends seen from the roll out of cross-listing and ATG white label across the Group,” the company said.
It will report the full numbers on 16 May.