Carlyle’s Getty Images Rallies as Earnings Said to ImproveLaura J. Keller
Getty Images Inc.’s bonds and loans rallied as a report to creditors showed improving profit after several quarters of sinking earnings at the stock-photo giant.
A measure of the stock-image provider’s earnings rose 8.7 percent to $72.4 million in the quarter ended June 30, according to two people with knowledge of the private report to investors, which adjusted for the impact of currency fluctuations. Without the adjustment, the earnings before interest, taxes, depreciation and amortization was $74.2 million during the same period last year, said the people, who asked not to be identified because they weren’t authorized to discuss it.
Getty’s $1.9 billion loan due October 2019 has jumped 2.5 cents since Wednesday to 71 cents on the dollar, according to market quotes compiled by Bloomberg. The earnings disclosure late Wednesday will be followed by a full second-quarter earnings report on a creditor-only call Aug. 12, the people said.
The company, owned by private-equity firm Carlyle Group LP, has been struggling amid increasing competition from rivals such as Shutterstock Inc. and Adobe System Inc.’s Fotolia LLC. That’s strained its free cash flow and crimped earnings.
Sarah Lochting, a spokeswoman for the Seattle-based company, declined to comment. Chris Ullman, a spokesman for Carlyle, also declined to comment.
Another piece of the company’s debt, $550 million of 7 percent unsecured notes due October 2020, is rebounding from a record low. The securities have climbed more than 7 cents over the past three days to trade at 42.5 cents on the dollar at 10:51 a.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
The company is still having trouble in its biggest division, known as midstock, the people said. Getty posted revenue of $54.4 million in that unit, which sells photographs to websites and small businesses, they said. That’s down from $65.4 million last year.
The decline has been easing, with the company booking just $1.3 million less in revenue, compared with the first quarter’s $55.7 million, the people said.
Getty reported $201.7 million in total revenue for the quarter, compared to a non-currency adjusted $220.4 million during the same period last year, the people said.
The company had $19.1 million in cash on June 30, a decline of $11.3 million since March, the people said. It had about $28 million available on its $150 million revolving loan, unchanged from last quarter, they said.
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