euro adhoc: Lycos Europe N.V. / Annual Reports / LYCOS Europe N.V. reaches positive net income in fiscal year 2006

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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
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ots Originaltext: Lycos Europe
Im Internet recherchierbar: http://www.presseportal.de

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


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