Ad revenue slide hits QXL

Online auction site QXL has seen revenues fall due to ever-decreasing advertising revenues.

Revenues for 2001 were down to £5.4m from £15.1m in the previous year.

The company has also moved away from its original auction model of selling its own items to acting as an agent for other sellers. Pre-tax losses have been reduced to £39.93m from £143.14m, partly because of this restructuring.

It has now promised it will hit profitability in a number of the 12 countries in which it operates. This is despite the fact the company is burning cash at a rate of £50,000 a day.

Mark Zaleski, Chief Executive Officer, said in a statement: "We are particularly pleased with the growth in transaction volumes in the fourth quarter and are confident that the significant progress we have made during the year in enhancements to the customer offering, monetisation and cost control will continue to help us in our drive to profitability."