- Getty founder knows how to develop ideas:
“In December 2005, before Getty Images bought the company behind it, iStockphoto did $600,000 of business. Yesterday it did $850,000 in one day.” [which, for the year and minus some variables, will be higher than said here].
"We are photographer friends, but not photographer cuddly,” says Mr Klein, referring to the fact that profit margins sit at 35 per cent.
Getty is involved in a joint venture with Time Warner, reviving its defunct pictoral Life magazine as Life.com and sharing advertising revenues. It is the sort of diversification, Mr Klein admits, that public company shareholders would not tolerate.
Klein says that Getty considered buying Warner/Chappell, the music publishing arm of Warner Music, before Edgar Bronfman bought it.
When the company was last public - the figures are for 2007 - turnover was $857 million and net profits were $125 million. This year, he says, sales will certainly be down as demand for images from advertising agencies has slumped, although cost-cutting means that “profits will be in line with last year”. However, with $1 billion of debt taken on since the acquisition - only three times” underlying earnings, Klein says - net profits will be down.
Times Online (compiled/abbreviated).