New Work SE

Earnings Release • Feb 11, 2009

News Details

Ad-hoc | 11 February 2009 08:15

XING AG increases revenues by 80 percent and continues to grow profitably

XING AG / Preliminary Results

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Hamburg, February 11, 2009 – XING AG (O1BC) can report the most successful
financial year in the Company’s history, according to preliminary and
unaudited results. In spite of the difficult overall economic climate, the
Company has achieved a significant rise in all of its key performance
indicators over the previous financial year.

The Hamburg-based Company XING AG continues on its path of profitable
growth. More than 2 million new members have registered on the leading
network for business contacts in Europe over the course of the last 12
months. By the end of the 2008 financial year, a total of more than 7
million business professionals were therefore active on XING. Having gained
188 thousand additional Premium Members, the Company can report a total of
approximately 550,000 paying members subscribed to its online platform as
of the end of 2008 – enabling it to exceed the previous year’s growth for
this reporting period.

As a result of this growth in its membership base, revenues increased by 80
percent to 35.3 million euros (2007: 19.6 million euros). The Company also
increased its operational result (EBITDA) by more than 85 percent. The
EBITDA (adjusted for non recurring expenses resulting from discontinued M&A
processes totaling 768 thousand euros) therefore rose by 86 percent to
12.82 million euros in the 2008 financial year (2007: 6.89 million euros).

XING AG generated more than 28 million euros with its core Subscription
business model for Premium Memberships, constituting 80 percent of the
Company’s overall revenues. The additional business models eCommerce (Jobs
and 'Best Offers') and Advertising have also proven to be profitable
sources of income in 2008 that are undergoing sustained growth. Since the
introduction of the performance-based business model for job listings in
October 2007, XING AG has generated around 4.3 million euros in additional
revenues from the eCommerce segment in 2008. In 2007, this newly introduced
segment in Q4 2007 had generated initial revenues totaling 370 thousand
euros. The Company’s third Advertising segment produced revenues amounting
to 2.4 million euros (Q4 2008: 750 thousand) in the 2008 financial year.

XING AG plans to publish its 2008 Annual Report with audited KPIs for the
2008 financial year on March 26th, 2009.

Preliminary & unaudited KPIs according to IFRS

XING total*
2008 2007
Revenue in EUR m 35.27 19.61
EBITDA in EUR m 12.82 6.89
EBITDA margin 36% 35%

Subscription
2008 2007
Revenue in EUR m 28.11 17.84
Paying members in 000s 550 362
Total members in m 7.00 4.83
Net adds paying members in 000s 188 141

Advertising
2008 2007
Revenue in EUR m 2.43 0.75
Page impressions in billions 3.80 2.29

eCommcerce
2008 2007
Revenue in EUR m 4.31 0.37
No. of Marketplace clicks in m 10.8 1.1

N.B.: Company revenues including other operating income; EBITDA 2008
adjusted for non-recurring expenses resulting from discontinued M&A
processes (EUR 768k); EBITDA 2007 adjusted for extraordinary items
resulting from the IPO

Important notice:
Provisional financing figures and proforma 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 annual
financial statements and the previous annual 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 annual financial statements are audited.
Although, in the opinion of XING AG, the proforma figures reflect the
direction of development of ordinary business and the current status of the
company, there is no guarantee that the proforma figures precisely reflect
this development direction and this status.

Patrick Möller
Director Investor Relations
Gaensemarkt 43
20354 Hamburg
Germany
Tel. +49 40 419131-793
Fax +49 40 419131-44
investor-relations@xing.com

11.02.2009 Financial News transmitted by DGAP

Language: English
Issuer: XING AG
Gänsemarkt 43
20354 Hamburg
Deutschland
Phone: +49 (0)40 419 131-793
Fax: +49 (0)40 419 131-11
E-mail: investor-relations@xing.com
Internet: www.xing.com
ISIN: DE000XNG8888
WKN: XNG888
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Stuttgart

End of News DGAP News-Service

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