euro adhoc: Lycos Europe N.V.
Financial Figures/Balance Sheet
LYCOS Europe
closes first nine months of 2006 with net profit of EUR 6.9 million
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
24.10.2006
. Net profit improves by 137 percent vs. EUR (18.5) in first nine months 2005 / Total revenues in first nine months 2006 amount to EUR 59.0 million (+ 1 percent vs. last year) / EBITDA improves by 71 percent to EUR (3.4) million vs. EUR (12.0) million in reporting period 2005 / Gross margin reaches 64 percent . Third quarter 2006 with net profit of EUR 9.1 million, total revenues of EUR 17.4 million and EBITDA of EUR (3.4) million . Third quarter strongly influenced both by successful sale of Swedish entity and acquisition activities
Haarlem / Netherlands, October 24, 2006 - LYCOS Europe N.V., one of Europe's leading internet portals and online advertisers, today announced its results for the third quarter and first nine months of 2006. LYCOS Europe reported a net profit of EUR 6.9 million in the first nine months 2006 and by this outperformed last year's figure by 137 percent (EUR (18.5) million in first nine months 2005).
The main driver for this result was the successful sale of LYCOS Europe's Swedish portal business Spray with a positive one-time profit impact of EUR 14.8 mln. Since the Swedish access business of Spray is also planned to be sold the financial statements of the nine months report have been restated according to International Financial Reporting Standards (IFRS) and therefore adjusted by the Swedish businesses as discontinued operations.
Total revenues in the first nine months 2005 therefore amounted to EUR 59.0 mln compared with EUR 58.3 mln in last year's reporting period. The EBITDA result improved by 71 percent to EUR (3.4) mln (vs. EUR (12.0) mln in 2005). LYCOS Europe was able to increase the gross margin to 64 percent compared with 62 percent in the first nine months of 2005.
With a 49 percent share (EUR 28.7 mln) of total revenues, the revenue stream of paid services & shopping has been the strongest contributor to total revenues, followed by advertising revenues with a share of 44 percent (EUR 25.9 mln) and Interconnect with 7 percent (EUR 4.3 mln). Revenues from paid services & shopping as the strongest pillar grew by 18 percent compared with last year's first nine months. Revenues from online advertising decreased by 7 percent compared with last year's reference period. Interconnect revenues faced a 19 percent reduction which is mainly caused by an ongoing price drop in the German access market.
In the third quarter of 2006, LYCOS Europe generated a net profit of EUR 9.1 mln (vs. EUR (2.0) mln Q3/2005) which was mainly due to the above mentioned successful sale of the Swedish portal business. Total revenues amounted to EUR 17.4 mln, a decrease of 13 percent compared to last year's third quarter (EUR 20.0 mln) caused by a disproportional weak summer and holiday season. The EBITDA result in Q3/2006 amounted to EUR (3.4) mln, compared with EUR 0.4 mln in the reference period of 2005. Third quarter's gross margin remained at a high level of 63 percent (vs. 66 percent in Q3/2005).
LYCOS Europe expects the acquisition of online shopping specialist mentasys to be closed in the fourth quarter 2006. Especially in the winter season which is the traditionally strongest period for eCommerce the company expects increasing revenues within paid services and shopping as well as in the advertising business.
LYCOS Europe's cash, cash equivalents and deposits amounted to EUR 110.6 mln on
September 30, 2006, compared to EUR 105.1 mln on December 31, 2005.
- ends -
|In mln EUR (ex. per share |Nine months ended|Nine months ended|Change |
|data, change, gross margin) |September 30, |September 30, | |
| |2006 |2005 | |
| | |restated | |
|Total revenues |59.0 |58.3 |1% |
|Gross profit |37.7 |36.4 |3% |
|Gross margin |64% |62% |3% |
|Loss from operations (EBIT) |(7.9) |(18.5) |57% |
|Net profit / (Net loss) |6.9 |(18.5) |137% |
|Net profit / (Net loss) per |0.02 |(0.06) |137% |
|share in Euro | | | |
|EBITDA |(3.4) |(12.0) |71% |
|Cash, cash equivalents and |110.6 |108.0 |2% |
|deposits | | | |
|In mln Euro (ex. per share |Three months |Three months |Change |
|data, change, gross margin) |ended September |ended September | |
| |30, 2006 |30, 2005 | |
| | |restated | |
|Total revenues |17.4 |20.0 |(13%) |
|Gross profit |10.9 |13.3 |(18%) |
|Gross margin |63% |66% |(5%) |
|Loss from operations (EBIT) |(4.9) |(1.5) |(219%) |
|Net profit / (Net loss) |9.1 |(2.0) |547% |
|Net profit / (Net loss) per |0.03 |(0.01) |547% |
|share in Euro | | | |
|EBITDA |(3.4) |0.4 |(924%) |end of announcement euro adhoc 24.10.2006 07:51:31
Further inquiry note:
Kay Oberbeck
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
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