euro adhoc: Lycos Europe N.V.
Annual Reports
LYCOS Europe N.V. increases
2005 revenues by 21 percent and breaks even in fourth quarter with EBITDA result
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
22.02.2006
Total revenues in 2005 grow by 21 percent to EUR 125.5 million and are spread almost evenly among the three main revenue streams Paid Services & Shopping, Internet Access and Advertising Business EBITDA in full year 2005 improves by 64 percent to EUR (12.3) million, net loss decreases by 56 percent to EUR (20.2) million LYCOS Europe N.V. breaks even in Q4/2005 on EBITDA with EUR 0.0 million and improves net loss by 83 percent vs. Q4/2004 to EUR (1.7) million
Haarlem / Netherlands, 22nd February 2006 - LYCOS Europe N.V., one of the leading European portal providers and developer of web applications, today announced its results for the financial year 2005. Mostly driven by an increase in total revenues by 21 percent to EUR 125.5 mln (vs. EUR 103.8 mln last year) and a successful implementation of several cost optimization measures LYCOS Europe N.V. achieved to significantly improve its results targeting profitability for the full year 2006. The 2005 net loss diminished by 56 percent to EUR (20.2) mln compared with last years EUR (45.5) mln. The 2005 EBITDA result improved even more by 64 percent to EUR (12.3) mln vs. EUR (34.2) mln in 2004.
The total revenues of LYCOS Europe were spread almost evenly among the three main revenue streams Paid Services & Shopping, Internet Access (Interconnect) and Advertising. The above average growing Paid Services & Shopping contributed to total revenues with a share of 35 percent (EUR 43.8 mln, increase of 40.6 percent vs. 2004), followed by the Interconnect division with a current share of 32 percent (EUR 40.3 mln, increase of 38.0 percent vs. 2004) and advertising revenues also with a share of 32 percent (EUR 40.1 mln, decrease of 2.9 percent vs. 2004, but restated by one-term-events increased by 8.0 percent in 2005 vs. 2004). Revenues from Licensing and others contributed 1.0 percent (EUR 1.3 mln) to total revenues. The revenue development in 2005 shows that LYCOS Europe was able to successfully develop revenue generators apart from the advertising market.
In the financial year 2005 costs of revenues of EUR 59.7 mln remained on an almost constant level (2004: EUR 57.8 mln), while at the same time the revenues rose by EUR 21.7 mln. The gross margin therefore improved by 8 percentage points to 52 percent.
LYCOS Europe managed to achieve a balanced EBITDA result of EUR 0.0 mln in the fourth quarter 2005, compared with EUR (5.5) mln in Q4/2004. At the same time, net loss improved by 83 percent to EUR (1.7) mln compared with EUR (10.1) mln in the corresponding quarter of 2004. This positive development was mostly driven by the successful implementation of several cost optimization measures and therefore a much enhanced cost base. The capital efficiency was raised significantly, leading e.g. to an improvement in the ratio of accounts receivables to total revenues by 39 percent (y-o-y). In relation to the fourth quarter 2004, revenues amounted to EUR 32.2 mln and therewith slightly dipped by 3 percent (Q4/2004: EUR 33.3 mln). Due to pricing pressure especially in the Swedish broadband access market coming along with a churn in narrowband customers, LYCOS Europes Interconnect revenues diminished by 14 percent in the fourth quarter 2005 (EUR 9.7 mln vs. EUR 11.2 mln in Q4/2004) whilst revenues from Paid Services & Shopping grew by 23 percent to EUR 11.5 mln (vs. EUR 9.3 mln in last years reference period).
Cash, cash equivalents and other investments decreased by 14 percent from EUR 121.7 mln on 31st December 2004 to EUR 105.1 mln on 31st December 2005. The average monthly cash reduction in 2005 amounted to EUR 1.4 mln, an improvement of 70 percent vs. 2004 (EUR 4.5 mln per month). This positive development is attributed to increased revenues and an enhanced cost base as well as improved capital efficiency.
- ends -
"With the financials 2005 at hand, LYCOS Europe has proven the capability for a turnaround coming along with increasing revenues and significantly improved results. Being right on track with our financials and being well-positioned to breakeven in the full year 2006, we will now focus on increasing the pace to market new and enhanced products. LYCOS Europe now has the right set-up, the means, the strategy and the creativity to benefit from the ongoing growth of the Internet business. We see high potentials especially in the field of search, communication and community", comments Christoph Mohn, CEO of LYCOS Europe N.V.
Mln.EUR (except share,margin) Full Year 05 Full Year 04 Change Total revenues 125.5 103.8 21% Pro forma gross profit 65.8 46.0 43% Pro forma gross margin 52% 44% 18% Loss from operations (22.7) (50.3) 55% Net loss (20.2) (45.5) 56% Net loss per share in Euro (0.06) (0.15) 56% EBITDA (12.3) (34.2) 64% Cash, cash equiv., other inv. 105.1 121.7 (14%) Mln.EUR (except share,margin) 3months end. 12/31/05 3months end. 12/31/04 Change Total revenues 32.2 33.3 (3%) Pro forma gross profit 17.3 16.5 5% Pro forma gross margin 54% 50% 8% Loss from operations (2.5) (11.3) 78% Net loss (1.7) (10.1) 83% Net loss per share in Euro (0.01) (0.03) 83% EBITDA 0.0 (5.5) 100%
end of announcement euro adhoc 22.02.2006 07:48:47
Further inquiry note:
Kay Oberbeck, Director PR & IR
Tel.: +49 (0)5241 8071055
E-Mail: kay.oberbeck@lycos-europe.com
Branche: Software
ISIN: NL0000233195
WKN: 932728
Index: Prime All Share, Technologie All Share
Börsen: Frankfurter Wertpapierbörse / regulated dealing/prime
standard
Börse Berlin-Bremen / free trade
Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Niedersächsische Börse zu Hannover / free trade
Bayerische Börse / free trade