TEFAF report on the art market 2014

TEFAF has just published the latest version of its annual report on the art market, examining the sector’s activity in 2014. The report was realised by Clare McAndrew, founder of Arts Economics, and the research programme directed by Anthony Browne. This exhaustive and detailed study closely examines the financial results of each artistic sector, the role of fairs and their place in the art world, and the development of online activities as well as the impact of the art market on employment. The global art market in 2014 In 2014, the global art market generated a sales revenue of just over €51 billion, representing a 7% increase on the previous year, as well as a historic record. This result was due to a 6% increase in sales volume (€39 million), whilst the number of transactions has remained lower than what it was at the peak of 2007. In terms of sales volume, the United States remains in the lead with 39% of global sales by value, followed by China and the United Kingdom, both with 22%. Roughly 1,530 lots were sold at auction for more than €1 million, 96 of which sold for higher than €10 million, a 17% increase on 2013. The sale of these lots accounts for 48% of fine art sales by value but only constitutes 0.5% of the number of transactions. In the dealer sector, which comprises traders’ art sales and galleries as well as private sales, €26.4 billion was amassed in 2014. In terms of the import of art works and antiquities, the sum of the transactions was €19.3 billion in 2013, an increase of 10% compared to the previous year and a new record for this sector. Imports from the United States and the United Kingdom put together make up 62% of global imports. Exports went up by 10%, reaching a record high of €19.8 billion...

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Sotheby’s 2014 financial report

Sotheby’s has released their full financial report for the year 2014, reporting a 19% increase in 2014 net auction sales, and a 20% increase in 2014 adjusted operating income. Their total adjusted operating income for 2014 was $267.9 million, and their adjusted net income $142.4 million. Adjusted Diluted Earnings per share for the year was $2.03 million. Their net income for the fourth quarter of 2014 was $74 million. Over the course of the year, auction commission revenues increased by 10% down to a 19% increase in Net Auction Sales, but also set back by a decline in Auction Commission Margin, which went from 15.9% to 14.7%. There was a marked decline in private sales commissions in the year, attributed to an increase in individual high-value sales. Savings for 2014 were aimed at $22 million, to be brought about by a number of cost reduction initiatives; according to Sotheby’s calculations, these savings actually came to around $33 million. Also in 2014, the auction housed launched its strategic partnership with RM automobiles, specialists in vintage cars. Bill Ruprecht, Chairman, President and CEO of Sotheby’s, commented that the success seen in 2014 has continued into 2015, saying that: “We have seen a 12% growth in global participation, a 42% increase in online buying across categories, and we have doubled our audience for live-stream auctions viewed on...

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Artprice announces 2014 as a record-breaking year for auctions

2014 proved to be a record-breaking year for art auctions, with the worldwide turnover increasing from $12.5 billion in 2013 to $15.2 billion in 2014, according to a report that Artprice conducted in partnership with Thierry Ehrmann, founder and president of Artprice.com and the Chinese institutional conglomerate Artron. This remarkable increase is due to a 26% rise in total worldwide sales revenue, as well as a record number of sales over $1 million. “A mind-blowing result, and an increase of 300% in just a decade,” as Thierry Ehrmann described it. However, these results are accompanied by an unsold rate of 37% in the West and 54% in China, which “shows a lack of speculation”, according to Artprice’s president. China tops the charts, closely followed by the United States, with the former realising 1,679 auctions of equal to or over $1 million and the latter witnessing a 41% increase in sales to $4.8 billion. It was Andy Warhol whose works generated the largest turnover by far, with his works amassing a total sum of $569 million at auction in...

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Success for Auctionata

The Berlin-based online auction house Auctionata has released their sales results for 2014. The auction house reported total sales of €31.5 million in 2014, a new record for the company and a 163% increase from 2013’s €12 million. The auction house has also expanded their global presence, with new offices in London, Zurich, New York, Rome, and Madrid, counting 300 employees around the world. “Last year’s growth is proof that our customers trust us to be as approachable as a local auction house with the capability to sell to a global audience,” said founder and CEO Alexander Zacke. “We found that there is a demand in the mid-market range for art and luxury collectibles that is not being met. Through our entirely digital valuation and auction platform, our business model is perfectly suited to service this need.” “With Auctionata in New York, we will continue to grow our relationships with U.S.-based consignors and raise brand awareness in North America. The upcoming opening of the permanent studio and warehouse space in the heart of New York’s art scene will create more opportunities for more and larger auctions,” adds Ben Hartley, international managing director of the New York branch. Auctionata plans to expand its global outreach even more in 2015, with plans for a live stream studio in Hong Kong. “The Asian market and its customers have enormous potential and we feel that it is essential that we open a new location to meet the growing demand,” said Zacke. “Strong customer relationships are one of the foundations of our business. Therefore we have to be present in all major markets to continue our success and...

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ARTnews’ 2014 financial results

ARTnews has announced their financial results for 2014, with an overall revenue of $6.3 million, which exceeded their prediction for the year by 30% (and increased on their 2013 revenue ($3.8 million) by 71%). The nominalised earnings of the company were $0.9 million, and their total assets valued at $12.2 million. 2014 was an important year for the company, in which they re-launched their entire site, implementing a new digital strategy for the 113-year-old ARTnews magazine, which it acquired in May 2014. The company also acquired Skate’s art business intelligence service, covered Art Basel Miami Beach fair, sponsored by UBS, and signed a marketing partnership with a major Silicon Valley-based auction firm. By December 2014, the site had 670,000 monthly visitors. Its office, creative, digital, production, and marketing departments are based in Warsaw, Poland, and sales and editorial departments in New York. Chief Operations Officer, Izabela Depczyk commented about the report: “Our focus on global leadership and innovation in the art media space, including our cutting-edge digital marketing tactics, a quality content strategy that caters to the millennial audience and the integration of Skate’s market-leading art business intelligence with ARTnews’ 113 year-old brand of prime quality art journalism, is clearly paying...

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