Excite@Home Warns of Cash Shortage as Ad Downturn Hits Revenues

24 July 2001

Internet company Excite@Home warned it needed more finances before the end of the year to survive, as the online ad downturn continues to hit its media division.

Posting second-quarter results matching analysts’ expectations, the firm revealed it had $183.4 million in available cash, though declined to say how much extra it might need.

Despite strong growth in Excite’s broadband division, total revenues fell 7% from Q2 2000 to $138.6m, following a disastrous 62% year-on-year drop in sales at the media division to $28.6m.

The company reported an overall net loss of $346m, compared with last year’s $668.3m, and an EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $12.3m, down from $15.9m twelve months ago.

News source: Financial Times