Lycos Europe revenue drops despite cost reduction

Lycos Europe N.V., one of the leading European portal providers and online advertisers, published its unaudited condensed consolidated interim financial statements for the first half year 2008 with EBITDA amounting to a loss of EUR 10.9 mln compared to EUR -7.6 mln in the same period in 2007.
Revenues decreased to EUR 33.3 mln for the first six months of 2008 compared to EUR 41.2 mln in 2007. The gross margin fell to 49% (from 55% last year) due to the decline. As a result of strict cost management ordinary expenses could be lowered by EUR 5.5 mln.
Cash, cash equivalents and other investments amounted to EUR 145.1 mln as of June 30. The cash ratio of 4.3 (cash, cash equivalents and other investments divided by total liabilities) shows the strong financial position of Lycos Europe.
In the near future the company is expected to 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.
Lycos Europe is one of the leading European portal providers and online advertisers operating a network of websites in seven languages in Europe and the USA. The company's combination of search, communication services, online communities, content channels, shopping, homepage building and domain names registration addresses a wide range of target groups.