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NORTH PALM BEACH, Fla., -- Oct. 8, 2002
-- Bankrate, Inc. (RATE), the Internet's leading consumer banking marketplace,
today reported that it expects record total revenue to exceed $7 million
for the third quarter ending Sept. 30, 2002. In 2001, Bankrate reported
total revenue of $4.2 million in the third quarter. The company expects
net income for the third quarter of 2002 to be above $1.3 million, or
approximately $0.10 per share, compared to a net loss of $379,000, or
$0.03 per share, in the third quarter of last year. Third quarter revenues
and net income for 2002 will be sequentially higher than those reported
for the second quarter of 2002.
Two years ago Bankrate set a course to build a profitable
company. "That plan had several major initiatives including the sale
of unproductive assets, reduction of operating expenses, the early payoff
of our subordinated debt, and strengthening our core businesses,"
explained Bankrate's CEO Elisabeth DeMarse. "Today, Bankrate is profitable,
has a strong balance sheet with virtually no debt and is pursuing activities
to increase our growth."
The company's goal is to achieve a 15 percent to 22 percent
core growth rate from its existing businesses -- online advertising, print
publication sales and hyperlinks. At the same time, Bankrate is exploring
several initiatives for 2003, including the introduction of Bankrate Marketplace,
which, among other things, facilitates transactions between the consumer
and the financial institution and other new products that could include
selected strategic acquisitions that might accelerate its growth.
Commenting on the company's year-end outlook, DeMarse continued,
"Our view for the final quarter of 2002 is tempered by prior years'
seasonality, with the first quarter being the strongest for the year.
However, based on the positive results thus far, we expect a record year.
This would be our first profitable year, and we are gratified that the
implementation of our business strategies is producing very positive results."
"We are the fastest-growing destination in online
business news/research, with 224 percent audience growth for the four
quarters ended March 2002," DeMarse continued. "This strong
recognition and the reputation of our product is resulting in high demand,
far exceeding our earlier expectations."
About Bankrate Inc.
Bankrate Inc. (OTCBB:RATE - News) owns and operates Bankrate.com,
the Internet's leading consumer banking marketplace. Bankrate averages
3.3 million unique visitors per month, according to ComScore Media Metrix,
which ranks Bankrate.com first in unique visitors in the "Financial
Information and Advice" category. Bankrate.com reviews more than
4,800 financial institutions in 173 markets in 50 states. Bankrate.com
is a destination site of personal finance channels, including banking,
investing, taxes and small business finance. It is the leading aggregator
of over 100 financial products, including mortgages, credit cards, new
and used auto loans, money market accounts and CDs, checking and ATM fees,
home equity loans and online banking fees.
Bankrate.com provides financial applications and information
to a network of more than 80 partners including MSN (Nasdaq:MSFT - News),
Yahoo! (Nasdaq:YHOO - News), America Online (NYSE:AOL - News), and Smart
Money. Bankrate.com's information is also distributed through more than
100 national and state publications.
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