October 16, 2008 12:14 ET

XING Again Breaks Quarterly Records, Increasing Revenues by 86% and Achieving an EBITDA Margin of 40%

HAMBURG, GERMANY--(Marketwire - October 16, 2008) - XING AG (O1BC), operator of XING -- the leading network for business contacts in Europe -- is continuing its profitable course of growth, according to preliminary and unaudited results. In Q3/2008, XING AG increased its total revenues by 86 percent to 9.18 million euros (Q3/2007: 4.94 million euros). In the first nine months of 2008, XING AG has nearly doubled its total revenues over last year's results, from 13.13 million euros in 2007 to 25.09 million euros in 2008. "Particularly in economically unstable times, XING AG is there for our members, offering them opportunities to expand their professional network and capitalize on this network. In addition to rising profits from operative business, we have over 40 million euros in liquid funds available. This places us in an excellent position to continue our growth strategy and weather even an extended economic downturn," said Lars Hinrichs, Founder and CEO of Hamburg, Germany-based XING AG.

Increase in paying members boosts revenues and results in all three
business segments

In the first nine months of 2008, the Company increased its paying Premium Members by 152 thousand, for a total of over 514 thousand as of September 30, 2008. Commensurate with this boost in paying members, revenues from the core Subscription business segment increased by 60 percent over the previous year, to 20.06 million euros (up from 12.55 million euros in 2007). Additionally, the two business segments introduced at the end of 2007 have made major contributions to revenue growth: the eCommerce segment earned XING AG revenues of 3.07 million euros in the first nine months of 2008, while the Advertising segment brought in 1.73 million euros for the Company.

The highly scalable nature of XING AG's business model once again allowed the Company to achieve an EBITDA of 9.47 million euros, or a margin of 38 percent (adjusted for non-recurring expenditures of 768 thousand euros), up from an EBITDA margin of 31 percent for the same period in 2007. The EBITDA for Q3/2008 was 3.71 million euros or 40% of revenue which makes Q3 the most profitable quarter this year.

Preliminary & unaudited KPIs according to IFRS

XING total

                Q3'2008     Q3'2007  Q1-Q3'2008    Q1-Q3'2007    Q2'2008
Revenue in
 EUR m*            9.18      4.94**       25.09       13.13**       8.41

EBITDA in EUR m    3.71      2.07**     9.47***        4.13**    3.13***

 in %                40        42**       38***          31**      37***


                Q3'2008     Q3'2007  Q1-Q3'2008    Q1-Q3'2007    Q2'2008
Revenue in
 EUR m             7.42        4.69       20.06          2.55       6.73

Paying members
 in 000s            514         325         514           325        470

Total members
 in m              6.53        4.25        6.53          4.25       6.14

Net adds paying
 members in
 000s                44          40         152           104         50


                Q3'2008     Q3'2007  Q1-Q3'2008    Q1-Q3'2007    Q2'2008

Revenue in
 EUR m             0.60           -        1.73             -       0.61

Page Impressions
 in m               955         634       2,788         1,638        913


                Q3'2008     Q3'2007  Q1-Q3'2008    Q1-Q3'2007    Q2'2008

Revenue in
 EUR m             1.10           -        3.07             -       1.02

No. of
 Clicks in m       2.89           -        7.65             -       2,46

* Incl. Other operating income
** Continuing Operations
*** Adjusted for non recurring expenses resulting from discontinued M&A
processes (EUR768k)

About XING

XING is the leading network for business contacts in Europe. Far more than a directory of business contacts, XING makes your professional network an active part of your life, enabling members to discover professional people, opportunities and privileges through its unique discovery capability and advanced 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 amongst professionals. By focusing on the target group 'business people worldwide,' the company is able to offer tailored features, thereby making networking and contact management simpler. Besides Headquarters in Hamburg, XING AG is also 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 and have been determined by the company on the basis of the provisional Q3/2008 financial statements and the previous financial statements for the specified periods in order to enable a better comparison to be made, and also to present exceptional factors; some of the figures have been calculated on a pro-forma basis. The provisional financial figures may be the subject of changes when the financial statements are audited. Although, in the opinion of XING AG, the pro-forma figures reflect the direction of development of ordinary business and the current status of the company, there is no guarantee that the pro-forma figures precisely reflect this development direction and this status.

Contact Information

  • XING Media Contacts:
    US: Kathy Johnson
    Consort Partners
    Email Contact

    Thorsten Vespermann
    Director Corporate Communications
    Email Contact