Terra Lycos chuffed with Q1 results
Revenue jumps, but still making a loss
Terra Lycos, the world's third-largest Net operator with the world's largest global network, has announced a 60 per cent jump in Q1 pro forma revenues from Q1 last year but has still made a £108 million loss.
Revenues have slipped six per cent from the last quarter but due to the turmoil in Internet stocks recently, the company has come out with a market-beating performance.
Not that it is actually making a profit - losses (before interest, taxes, depreciation etc) of £47 million this quarter - but they are getting smaller every quarter. This is mostly thanks to cost-cutting at Lycos. This, of course, comes from the "capitalization of synergies" when Terra and Lycos merged in June last year. Basically, they found two people doing the same job on two computers. Put em together and what have you got? Fifteen per cent fewer staff and lower overheads - 21 per cent lower than last quarter apparently.
The company has also put a big goodwill sum in its results thanks to various acquisitions made last year. This write-off will effect the rest of the year.
"We are very pleased with our results and activities for the quarter, which have further strengthened our business," said Terra Lycos chairman Joaquim Agut. "We will keep focusing our efforts on improving the company's profitability quarter after quarter, capitalising on growth opportunities in the markets in which we are present."
Meanwhile, the company goes from strength to strength in terms of Internet visitors. Average daily page views have jumped 23 per cent to 431 million (not bad going) and registered users have reached 98 million. Access subscribers have grown 15 per cent to seven million - most come from Spanish-speaking countries and come as a result of the Terra merger (Terra is a Spanish company).
Terra paid $12.5 billion (£8.7 billion) for Lycos last year. ®