10-28-2008

LYCOS Europe N.V. Revenue decline leads to EBITDA of EUR (19.9) million for nine months period 2008 despite cost reduction

Adhoc

Haarlem/Netherlands, October 28, 2008 – LYCOS Europe N.V. (“LYCOS”), one of the leading European portal providers and online advertisers, today published its unaudited condensed consolidated interim financial statements for the nine months of 2008.

Revenues were EUR 46.9 million in 2008 compared to EUR 58.4 million in the same period in 2007. The gross margin was 46 percent (54 percent last year) due to the decline in revenues. Ordinary expenses were down EUR 5.3 million thanks to strict cost management, but this could not fully compensate for the revenue decline. The EBITDA for the nine months of 2008 came to EUR (19.9) million, compared to EUR (12.9) million in the same period in 2007.

Cash, cash equivalents and other investments amounted to EUR 139.2 million as of September 30, 2008. The cash ratio of 3.9 (cash, cash equivalents and other investments divided by total liabilities) and the equity ratio of 80 percent shows the strong financial position and solid balance of LYCOS Europe.

 

 

Nine months
ending
September 30, 2008
(unaudited)

Nine months
ending
September 30, 2007
(unaudited)

Change

 

Revenues

in mln EUR

46.9

58.4

(20)%

EBITDA

in mln EUR

(19.9)

(12.9)

(54)%

EBIT

in mln EUR

(23.0)

(36.4)

37%

Net profit/(loss)

in mln EUR

(17.1)

44.1

>(100)%

 

 

 

 

 

Earnings/loss per share
(diluted and undiluted)

in EUR

(0.05)

0.14

>(100)%


In the short term, the company will continue focusing on the product offensive to stabilize traffic. Supported by the launch of behavioral targeting, this should help attract advertising partners.
Lycos iQ has already exceeded the key threshold of one million queries. The shopping guide portal “decido” will be further promoted.
Cost management will be further tightened in the fourth quarter of 2008 to offset decreasing revenues.
LYCOS Europe expects to conclude the strategic review process as planned in the second half of 2008.

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About Lycos Europe
Lycos Europe (ISIN NL0000233195) is one of the leading European portal providers and online advertisers, operating a network of websites in seven languages in Europe and the United States. The company's combination of search and communication services, online communities, content channels, shopping, homepage building and domain name registration addresses a wide range of target groups.

For further information, please contact:

LYCOS Europe
Investor Relations
Jochen Hög
T: +49-(0)5241-80-71244
F: +49-(0)5241-80-671244
E: jochen.hoeg@lycos-europe.com

LYCOS Europe
Public Relations
Frauke Riva
T: +49-(0)5241-80-71050
F: +49-(0)5241-80-671050
E: frauke.riva@lycos-europe.com