XING Again Breaks Quarterly Records, Increasing Revenues by 86% and Achieving an EBITDA Margin of 40%
HAMBURG, GERMANY -- (Marketwire) -- 10/16/08 -- XING AG (O1BC), operator of XING -- theleading network for business contacts in Europe -- is continuing itsprofitable course of growth, according to preliminary and unauditedresults. In Q3/2008, XING AG increased its total revenues by 86 percent to9.18 million euros (Q3/2007: 4.94 million euros). In the first nine monthsof 2008, XING AG has nearly doubled its total revenues over last year'sresults, from 13.13 million euros in 2007 to 25.09 million euros in 2008."Particularly in economically unstable times, XING AG is there for ourmembers, offering them opportunities to expand their professional networkand capitalize on this network. In addition to rising profits fromoperative business, we have over 40 million euros in liquid fundsavailable. This places us in an excellent position to continue our growthstrategy and weather even an extended economic downturn," said LarsHinrichs, Founder and CEO of Hamburg, Germany-based XING AG.
Increase in paying members boosts revenues and results in all threebusiness segments
In the first nine months of 2008, the Company increased its paying PremiumMembers by 152 thousand, for a total of over 514 thousand as of September30, 2008. Commensurate with this boost in paying members, revenues from thecore Subscription business segment increased by 60 percent over theprevious year, to 20.06 million euros (up from 12.55 million euros in2007). Additionally, the two business segments introduced at the end of2007 have made major contributions to revenue growth: the eCommerce segmentearned XING AG revenues of 3.07 million euros in the first nine months of2008, while the Advertising segment brought in 1.73 million euros for theCompany.
The highly scalable nature of XING AG's business model once again allowedthe Company to achieve an EBITDA of 9.47 million euros, or a margin of 38percent (adjusted for non-recurring expenditures of 768 thousand euros), upfrom an EBITDA margin of 31 percent for the same period in 2007. The EBITDAfor Q3/2008 was 3.71 million euros or 40% of revenue which makes Q3 themost profitable quarter this year.
Preliminary & unaudited KPIs according to IFRSXING total Q3'2008 Q3'2007 Q1-Q3'2008 Q1-Q3'2007 Q2'2008Revenue in EUR m* 9.18 4.94** 25.09 13.13** 8.41EBITDA in EUR m 3.71 2.07** 9.47*** 4.13** 3.13***EBITDA Margin in % 40 42** 38*** 31** 37***Subscription Q3'2008 Q3'2007 Q1-Q3'2008 Q1-Q3'2007 Q2'2008Revenue in EUR m 7.42 4.69 20.06 2.55 6.73Paying members in 000s 514 325 514 325 470Total members in m 6.53 4.25 6.53 4.25 6.14Net adds paying members in 000s 44 40 152 104 50Advertising Q3'2008 Q3'2007 Q1-Q3'2008 Q1-Q3'2007 Q2'2008Revenue in EUR m 0.60 - 1.73 - 0.61Page Impressions in m 955 634 2,788 1,638 913eCommerce Q3'2008 Q3'2007 Q1-Q3'2008 Q1-Q3'2007 Q2'2008Revenue in EUR m 1.10 - 3.07 - 1.02No. of Marketplace Clicks in m 2.89 - 7.65 - 2,46* Incl. Other operating income** Continuing Operations*** Adjusted for non recurring expenses resulting from discontinued M&Aprocesses (EUR768k)
About XING
XING is the leading network for business contacts in Europe. Far more thana directory of business contacts, XING makes your professional network anactive part of your life, enabling members to discover professional people,opportunities and privileges through its unique discovery capability andadvanced contact management tools.
With the successful IPO of XING as the first Web 2.0 company to go public,XING AG has had a long-term impact on the social networking trend amongstprofessionals. By focusing on the target group 'business people worldwide,'the company is able to offer tailored features, thereby making networkingand contact management simpler. Besides Headquarters in Hamburg, XING AG isalso represented with offices in Barcelona, Istanbul and Beijing.
XING. Powering Relationships.
Important notice:
Provisional financing figures and pro-forma figures subject to confirmation
The results and figures published in this notification are unaudited andhave been determined by the company on the basis of the provisional Q3/2008financial statements and the previous financial statements for thespecified periods in order to enable a better comparison to be made, andalso to present exceptional factors; some of the figures have beencalculated on a pro-forma basis. The provisional financial figures may bethe subject of changes when the financial statements are audited. Although,in the opinion of XING AG, the pro-forma figures reflect the direction ofdevelopment of ordinary business and the current status of the company,there is no guarantee that the pro-forma figures precisely reflect thisdevelopment direction and this status.
XING Media Contacts:US: Kathy JohnsonConsort Partners415-823-9566Email ContactGlobal:Thorsten VespermannXING AGDirector Corporate Communications0049-40-419-131-763Email Contact
POS Magnetic Card Readers
Online distributor for point of sale equipment, TYSSO and Pegasus.








