24/7 Media Sees Slowdown

Online advertising firm 24/7 Media Inc. said a slowdown in ad spending hurt its third-quarter results and will likely hamper growth until the middle of 2001. In order to reach profitability amid the “difficult” market conditions, New York-based 24/7 Media said it will cut 200 jobs, or 20% of its staff, by year-end as part of a restructuring that aims to produce annual savings of about $20 million. Much of the growth for the coming quarters will come from the technology business, which could be up as much as 30%, executives said. In the third-quarter, its pro forma loss, excluding items, widened to $22.5 million, or 59 cents a share, versus a pro forma loss of $7.4 million, or 35 cents, a year-ago. Estimates were for a loss, excluding goodwill, of 47 cents. Revenue nearly doubled to $48.1 million. Shares fell 98 cents to close at $4.61 on Nasdaq.