euro adhoc: Lycos Europe N.V.
Annual Reports
LYCOS Europe N.V. reaches
positive net income in fiscal year 2006
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
annual report
20.02.2007
. Net profit increases by 108 % to EUR 1.7 million for 2006 compared to net loss of EUR (20.2) million in 2005 . EBITDA in full year 2006 improves by 55 percent to EUR (4.6) million
Haarlem / Netherlands, February 20, 2007 - LYCOS Europe, one of the leading European portal providers and online advertisers, today announced that it achieved its financial target to finish the financial year 2006 with a positive net income on a full year basis. The net profit for the period amounted to EUR 1.7 million, which is an improvement of 108 percent compared to the net loss of 2005 of EUR (20.2) million. The positive net income was mainly realized by the disposal of the Swedish Portal business which resulted in a positive one-time gain of EUR 15.0 million. The disposal of the Swedish Access business was closed in January 2007 and will be accounted for in the first quarter 2007. These disposals were the result of a strategic decision to achieve a better focus on the paid services and shopping and advertising based section of the Company. Both businesses were classified as discontinued operations and for comparative purposes are excluded from the operating result of the Company.
Lycos Europe achieved to improve on revenues as well as on EBIT compared to the reporting period of the previous year. Total revenues in 2006 (EUR 82.4 million) increased by 4 percent compared to 2005 (EUR 79.2 million, not restated EUR 125.5 million) and 2006 EBIT improved by 30 percent (2006: EUR (13.1) million vs. 2005: EUR (18.7) million, 2005 not restated EUR (22.7) million). The 2006 EBITDA result improved by 55 percent to EUR (4.6) million vs. EUR (10.3) million in 2005 (not restated EUR (12.3) million).
The paid services and shopping revenues contributed to total revenues with a share of 49 percent (EUR 40.4 million, increase of 23 percent vs. 2005, followed by the advertising revenues with a current share of 43 percent (EUR 35.7 million, decrease of 7 percent vs. 2005). The remaining 8 percent of the revenues consists mainly of interconnect revenues generated by the German Access business.
Cash, cash equivalents and other investments decreased by 11 percent from EUR 105.1 million on December 31, 2005 to EUR 93.3 million on December 31, 2006. Cash used in operating activities (continued operations) amounted to EUR 0.5 Million, which is an improvement of 95 percent compared to the reference period of 2005. The results of 2006 show that the investments of LYCOS Europe into a centralized business unit structure with an outstanding development team are paying off. With this launch platform in place the company will be able to introduce several new state-of-the-art products, mainly in the areas of communication services and communities, in 2007. The focus of the new services is thereby to increase both, the revenue stream from online advertising as well as from paid services and shopping. At the same time the company will also start offering services under the brand Jubii in the United States in order to reach better economies of scale. Key Figures 2006 vs. 2005: |In million Euro |Year ended |Year ended |Change | |(except per share data, |December 31, 2006 |December 31, 2005 | | |change and gross margin)| |(restated) | | |Total revenues |82.4 |79.2 |4% | |Gross profit |52.2 |49.8 |5% | |Gross margin |63% |63% |0% | |Loss from operations* |(13.1) |(18.7) |30% | |Net profit /(loss)* |1.7 |(20.2) |108% | |Net profit /(loss) per |0.01 |(0.06) |108% | |share in Euro* | | | | |EBITDA |(4.6) |(10.3) |55% |
Three months ended December 31, 2006 and 2005:
|In million Euro |Three months ended |Three months ended |Change | |(except per share data, |December 31, 2006 |December 31, 2005 | | |change and gross margin)| |(restated) | | |Total revenues |23.4 |20.9 |12% | |Gross profit |14.5 |14.1 |3% | |Gross margin |62% |67% |(9)% | |Loss from operations* |(5.2) |(0.2) |(3,051)%| |Net loss* |(5.2) |(1.7) |(206)% | |Net loss per share in |(0.02) |(0.01) |(206)% | |Euro* | | | | |EBITDA |(1.2) |1.7 |170% |
* Including an impairment loss related to the Fireball trademark of EUR 2.4 million as a result of an assessment of the recoverable amount made during the fourth quarter 2006.
About Lycos Europe Lycos Europe (ISIN NL0000233195) is one of the leading European internet destinations operating a pan-European network of websites in seven languages. The company's combination of search, communication services, content channels, Internet access, homepage building and online communities addresses a wide range of target groups. The Lycos Europe Network provides an attractive medium not only for consumers but also for advertisers and e-commerce partners throughout Europe. Every month about 31 million users visit the Lycos sites and by Lycos Europe distributed partner sites in Europe. With a network of websites covering Austria, Denmark, France, Germany, Great Britain, Italy, the Netherlands, Spain, and Switzerland, Lycos Europe has a large geographical reach in Europe.
end of announcement euro adhoc 20.02.2007 08:10:27
Further inquiry note:
LYCOS Europe
Analyst Relations
Sascha Wittler
T: +49-(0)5241-80-71134
F: +49-(0)5241-80-671134
E: sascha.wittler@lycos-europe.com
Public Relations
Ina Kruse
T: +49(0)5241-80-71050
F: +49-(0)5241-80-671050
E: ina.kruse@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
Euronext - Paris / free trade
Bayerische Börse / free trade