The company attributed the revenue decrease to continued falloff in dot-com advertising revenue. Seventy-five percent of its revenue currently comes from bricks-and-mortar businesses.
Ivillage also said that it is working to diversify its revenue streams and said that 40% of revenue in the quarter came from non-advertising sources, including television deals, magazine publishing (the company owns Lamaze Publishing) and licensing.
The company also provided an update on its plan to merge with competitor Women.com Networks, which it expects to complete by the end of the quarter. Ivillage said that it would receive a $20 million investment from Hearst Communications, which has a 46% interest in Women.com, in addition to receiving at least $15 million in what it termed "advertising and production services" from Hearst over the next three years upon the deal's closing.
Shares of iVillage closed today at $1.06. -- Catharine P. Taylor
Copyright May 2001, Crain Communications Inc.