Marketing Services Group Inc., New York, reported a net loss of $1.8 million on revenue of $22.6 million for the third quarter ended March 31, 1999, compared to a net loss of $149,690 on revenue of $15 million for the third quarter one year ago.
MSGI converted GE Capital’s preferred shares to common shares in the fourth quarter of 1999, thus eliminating preferred dividends for the new fiscal year. Including the preferred dividends, net loss for the third quarter was $2.8 million.
The net loss was principally attributed to fulfillment operations, which have since been divested; increased amortization costs associated with recent acquisitions; and telemarketing activities, which continue to suffer from greater than usual seasonal losses, the company said. Direct and Internet marketing business continue to provide positive income from operations, according to MSGI.
During the quarter, MSGI completed its acquisition of list management firm Stevens-Knox & Associates and divested its majority interest in Metro Fulfillment.
