Response to the decrease in net income will increase the auction house commission from March 15. At about the same time (March 11) Buyer's Premium will increase and the auction house Christie's

auction house Sotheby's, whose securities are publicly traded, reported a decline in profits of 7.6%in the fourth quarter of 2012. Net profit of the auction house in October, November and December of last year amounted to 66.1 million dollars. In the same period of 2011, the figure was 71.5 million dollars. Earnings per share was 96 cents, which is less than the average increase in the share price, $ 1.1. The total quarterly revenue with rose 2.4%to 291.1 million dollars.

CEO William Ruprecht, Sotheby's explained the difference in profit in 2011 and 2012 so that the end 2011 was rich in individual auctions of private collections, and in the fourth quarter of 2012, there were fewer such trades. In addition, the auction house suffered a loss of $ 8.3 million, or 12 cents per share, due to the implementation of financial restructuring (it will save up to $ 5 million annually, beginning in 2014-th). And in the last quarter of 2011, Sotheby's managed to save 13.6 million dollars in tax breaks, which in 2012 was gone. Over the past 12 months securities auction house fell by 4%. On March 1, the price per share at Sotheby's New York Stock Exchange was 38.23 dollars.

auction house Sotheby's announced rate increase Buyer's Premium for the first time in the last 5 years. It must have been caused by a decline in revenue from BP in 2012 to 11%- up to 622 million dollars. Under current conditions, the buyers at Sotheby's pay a commission of 25%on the first 50,000 dollars of the price of a hammer, and 20%will be charged to the hammer price of the remaining 50,000 to $ 1 million, and 12%will be charged with all the amount over 1 million. On March 15, 25%of the commission will have to pay the first $ 100 thousand, 20%- of the amount of 100 thousand to 2 million dollars, and 12-percent commission will be charged on all that more than $ 2 million.

Earlier the growth of their commission announced and Christie's . However, Christie's increase Buyer's Premium will be less significant. On March 11, the Commission in this auction house will be 25%of the hammer price up to and including 75 000 dollars, plus 20%of the hammer price of 75,000 to 1.5 million, and 1.5 million will be charged 12%commission.

Prepared Maria Onuchina, AI

Sources : artinvestment.ru