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LYCOS Europe (different from LYCOS U.S.) has released the financial statement for the first half year of 2008. The company is considered as one of the Europe’s finest portal providers and online advertisers. The report shows terrible revenue decline of the company despite cost reduction. The half year ended on June 30, 2008.
The company saw a huge €9.8 million loss in the half year earnings. Same time last year, company’s earning was €48.7 million profit.
Here is the press release of LYCOS Europe:
Haarlem / Netherlands, August 4, 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 first half year 2008.
The EBITDA of the first six months ended June 30, 2008 amounted to EUR (10.9) million compared to EUR (7.6) million in the reference period in 2007. Revenues decreased to EUR 33.3 million for the first six months of 2008 compared to EUR 41.2 million in 2007. The gross margin fell to 49 percent (from 55 percent last year) due to the decline. As a result of strict cost management ordinary expenses could be lowered by EUR 5.5 million.
Cash, cash equivalents and other investments amounted to EUR 145.1 million as of June 30, 2008. The cash ratio of 4.3 (cash, cash equivalents and other investments divided by total liabilities) shows the strong financial position of LYCOS Europe.
Also in the near future, the company will mainly focus on the product offensive in order to stabilize the traffic. This should be supported by the launch of behavioural targeting. The growth of Lycos iQ will be fostered and further actions will be taken in the second half of 2008 to have the shopping guide portal “decido” prosper. The tight cost management will be maintained throughout the course of 2008. In the context of the strategic review process, progress is being made and LYCOS Europe expects that this process will be concluded, as planned, in the second half of 2008.
