Lycos Europe Expects Break-Even Next Year

27 September 2001

Online portal group Lycos Europe has brought forward the date it expects to break even from mid-2004 to before the end of next year, sending its stock up 13%.

For its fiscal Q4 (ending June 30), the company posted an EBITDA (earnings before interest, taxes, depreciation and amortization) loss of E39.8 million ($36.7m), compared with E52m a year before. The loss was narrower than the company’s own predictions of E43m and analysts’ expectations of E54m, a feat Lycos attributed to lower operating costs.

Revenues for the quarter jumped 157% year-on-year to E40.2m, while full-year revenues rose to E138.9m, from E40.2m the year before. The firm’s EBITDA loss for the whole twelve months was E202.2m.

Lycos added that it had E353.2m in cash remaining from last year’s flotation.

News source: (USA)