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Lycos Europe revenue drops 19 per cent

20 February 2004

Lycos Europe has announced that its revenue fell by 19 per cent to €3.2 million during the three months to December 30.

The company also saw losses widen to €16.3 million, from €1.5 million in the December quarter 2002.

The Internet portal's full year revenue was down 28 per cent to €85 million, though losses were smaller than the previous year. The company reported a net loss of €6.1 million compared with a net loss of €79 million in 2002.

However, Lycos Europe remained optimistic about 2004, despite the fall in revenue, and predicted a 'relevant improvement in operating results in 2004'.

The company blamed falling revenues on the sale of loss making subsidiaries in 2002 and 2003 and the loss of an advertising agreement with Bertelsmann.

There are now four main businesses which make up the firm: paid services, advertising, e-mail services and broadband.

Premium paid services and shopping contributed 22 per cent to revenue in 2003, although Lycos Europe said advertising was the main contributor last year.

Christopher Mohn, company CEO said: 'We succeeded in reshaping Lycos Europe by establishing the new profit centre structure at the end of last year. In 2004, we will focus on expanding our four newly defined core business units which will be the main drivers for out growth in paid services.'

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