Gawker Media profits soar
Nick Denton says that Gawker Media’s revenues were 45% higher in the first two quarters of 2009 than they were in the same period last year; he also tells me that pageviews are up 40% June-on-June. Judging by his chart, profits (revenues less expenses) hit an all-time high this quarter, which explains why he’s started hiring again. (He passed, however, on hiring Bonnie Fuller.)
The cuts at the end of last year — you can see them in the declining expenses — not only made the remaining Gawker employees more productive, but also took out of the network the blogs which were the most difficult to sell to advertisers: Consumerist, Wonkette, and Valleywag. The only hard-to-sell site now is Fleshbot, which accounts for less than 7% of Gawker Media’s pageviews. (Gizmodo, the easiest sell, is also the most popular site, with about a quarter of Denton’s pageviews.)
Gawker’s now a lean money-making machine, which is well positioned to survive any further plunges in the online advertising market. The “I’m not in this to get rich” Denton of 2003 is a fully-fledged mogul now. And now he’s beginning to show impressive earnings growth, can the sale of a significant stake be far away? Or even the first blog IPO?