Quarterly Report • May 10, 2011
Quarterly Report
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Interim Report Q1 2011 from January 1 to March 31, 2011
A person with contacts will go far. A person with good contacts will go even further. Exclusive business contacts were once the province only of select societies, but now they are available to everyone thanks to the Internet. Thanks to XING, the online network for business contacts. Over ten million professionals use the XING global business network to do business, make deals, and further their careers. XING offers custom networking features and services to help them create their networks and stay in touch. XING hosts about 50 thousand expert groups and assists its members in organizing over 180 thousand networking events every year around the globe. With XING Jobs, the network also features job ads to enable its members to leverage their professional contacts for creating real value. XING. Powering Relationships.
| Key Figures | Q1 2011 | Q1 2010 | Change in % |
|
|---|---|---|---|---|
| Total operating income | in € million | 15.65 | 12.60 | 24 |
| EBITDA | in € million | 5.62 | 3.30 | 70 |
| EBITDA margin | in % | 36 | 26 | 10 pts. |
| Net income | in € million | 2.69 | 1.26 | 114 |
| Operating cash flow | in € million | 8.76 | 9.20 | (5) |
| Operating cash flow per share | in € | 1.66 | 1.74 | (5) |
| Earnings per share (undiluted) | in € | 0.51 | 0.24 | 109 |
| Equity | in € million | 64.11 | 54.31 | 18 |
| Cash | in € million | 62.91 | 49.96 | 26 |
| Members | in millions | 10.81 | 9.17 | 18 |
| thereof paying subscribers | in thousands | 759 | 708 | 7 |
| Contacts | in millions | 225 | 183 | 23 |
| Employees | Number | 362 | 293 | 24 |
For more than eight years, XING has endeavored to help its members improve and expand their professional lives, to turn economic challenges into advantage, to grasp new opportunities, and to stimulate and enable communication across geographical borders. XING offers its members countless opportunities to make contact and communicate with companies, existing and potential clients, as well as future employees and colleagues. Each new contact has the potential to open up new sales channels, create new career opportunities, stimulate new ideas, and extend a member's personal network. XING's success is based directly on the success and positive experiences of its customers. With an undiminished enthusiasm for new ideas, and a fine sensibility for what our members need to ensure long-term professional success, XING continues the success story that began in 2003.
4 XING share
2 Executive Board Letter
The first three months of the 2011 financial year were very successful for XING. In autumn 2010 we launched a product offensive with a number of changes, and have added to these again during Q1 2011 with the amiando integration also proving to be a key source of revenue. We're also very happy with how XING has developed financially, proving that it's both a growing and profitable company. Revenues including sundry operating income rose from €12.6 million in Q1 2010 to €15.65 million in Q1 2011 – an increase of 24 percent. Around two-thirds of this growth can be attributed to our three vertical sources of revenue: "e-Recruiting", "Advertising" and "New Verticals". "e-Recruiting" revenues are making an increasing impact on overall revenues after growing by almost 90 percent in the last 12 months. Operating results (EBITDA) of €5.62 million and a margin of around 36 percent were 70 percent higher than those of the same period last year (€3.30 million). This again proves that sustainable revenue growth can be achieved along with high profitability, which enables us to make ongoing investments in new products and features.
In March we launched a range of online communication options for business users that have already proven popular in private online use. Now we've made it much quicker and easier for more than 10 million XING members to communicate with one another by giving them the tools they need to post news items, tips, and various other information as well as being able to share information posted by others with the aim of boosting interactivity. This impacted positively on member growth in German-speaking countries where 215 thousand people signed up during the first three months of 2011. This in turn continues the excellent growth we saw during the previous quarter and represents an increase of over 30 percent compared to Q1 2010.
Another key milestone in driving revenue growth was the integration of amiando AG in February. Thanks to this move, XING can now offer its members a ticketing service on its platform as events have become an essential and integral part of the XING community. Event organizers can manage their events right from the registration process through to billing and on to admission management.
Executive Board Letter
On March 30, we had a special treat in store for our investors with the Executive and Supervisory Boards deciding to suggest paying a special distribution of funds from capital reserves amounting to €20 million to the company's shareholders at the next AGM on May 26, 2011. The payout per share will amount to approx. €3.70. This special distribution of funds highlights XING's financial strength. Our successful business model and liquid assets of approximately €40 million put us in an excellent position in terms of forging ahead with our growth strategy. According to the stipulations of the German Stock Corporation Act, the special distribution may not be effected for a period of six months at the earliest following the publication of the entry of the decision into the commercial register.
Thank you for the trust you've vested in us. We hope to see you at the AGM in Hamburg on May 26, 2011.
Hamburg, May 2011
Dr. Stefan Gross-Selbeck Ingo Chu CEO CFO
CCO CTO
Dr. Helmut Becker Jens Pape
| XING share data | |
|---|---|
| Number of shares | 5,291,996 |
| Type of share | Registered shares |
| IPO Höchst- und Tiefstkurse der XING-Aktie von Dezember 2009 bis Dezember 2010 |
12/07/2006 |
| Trading Symbol | O1BC Höchst- und Tiefstkurse |
| in € Securities identification symbol (WKN) |
Monatsschlusskurse XNG888 |
| 40 ISIN |
DE000XNG8888 |
| Bloomberg | O1BC 36,75 |
| Reuters 35 |
OBCGn.DE |
| 33,40 Market segment 31,79 |
33,50 Prime Standard 31,67 |
| Stock exchanges 30,50 |
32,80 Berlin, Hamburg, Dusseldorf, Frankfurt, Munich, Stuttgart 29,87 |
120
XING share
| Figures of XING shares, at a glance | Q1/2011 | Q1/2010 |
|---|---|---|
| XETRA closing price on March 31 | €41.68 | €28.80 |
| High | €42.50 | €31.79 |
| Low | €37.87 | €27.40 |
| Market cap end of period | €220.6 million | €151.8 million |
| Average trading volume per day (XETRA) | 16,367 | 12,722 |
| TecDAX ranking | ||
| Based on order book turnover | 36 | 36 |
| Based on freefloat market cap | 40 | 37 |
| Earnings per share (undiluted) | €0.51 | €0.24 |
Operating cash flow per share €1.66 €1.74 Equity per share €12.11 €10.30
for the period from January 1 to March 31, 2011
Business development
12 Innovation, research and development
13 Risk report
14 Consolidated income statement
15 Statement of income and accumulated earnings
16 Consolidated balance sheet
18 Consolidated cash flow statement
Consolidated statement of movements in shareholder equity
Notes to the consolidated interim financial statements
To our shareholders Financial information Service
In Q1 2011, member growth continued to be dynamic in the German-speaking core markets (Germany, Austria, and Switzerland – D-A-C-H). Growth has continued to accelerate since our major product offensive in September 2010. 215 thousand people signed up to XING in Q1 2011, a 33 percent increase over the same period last year. XING had 4.69 million members in Germany as of the end of March, indicating that it has again expanded its market leadership. International member growth slowed due to the planned reduction in marketing budgets and a simultaneous increased focus on product development. 115 thousand people from non-D-A-C-H countries signed up to XING in Q1 2011, taking the total number of users from 9.17 million to 10.81 million.
XING AG reported accelerated growth for Q1 2011 with a 24 percent increase in revenues over Q1 2010. Total revenues including other operating income for Q1 2011 amounted to €15.65 million, an increase of over €3 million compared to Q1 2010. The "Subscriptions" business unit achieved revenues of €11.13 million in Q1 2011 compared to €10.07 million in Q1 2010, representing an increase of €1.06 million or 11 percent. The number of Premium Members increased by 14 thousand to 759 thousand.
The verticals' share of total revenues increased in relation to their share for the third quarter. In Q1 2011, XING AG's verticals accounted for around 30 percent of total revenues compared to about 20 percent in Q1 2010.
The dynamic development seen in "e-Recruiting" is indicative of the strong growth we are currently experiencing with a 90 percent year-on-year increase in revenues taking the total to €2.71 million. During the first quarter XING AG acquired additional business customers looking to professionalize their recruiting processes. According to a survey by BITKOM, half of all recruiters in Germany already use the Internet to find out more about job applicants. More than 75 thousand recruiters already use XING to contact potential candidates directly with the added bonus of being able to contact passive job-seekers. It therefore comes as no surprise that the number of companies posting their job vacancies on social networks is growing all the time. A BITKOM survey measured growth of 17 percentage points, taking the total to 29 percent. No other sector is currently experiencing such growth.
9
For the first time ever, XING AG also generated revenues through marketing events on www.xing.com and as a result of acquiring amiando AG. Revenues from this business segment are listed under "New Verticals" and in Q1 2011 they amounted to approximately €510 thousand compared with €2 thousand in Q1 2010.
Together with the Advertising, Partnerships, Company Profiles, and Enterprise Groups business models, Q1 2011 revenues for the "Advertising" segment grew to €1.05 million, which equates to a 36 percent increase over figures for Q1 2010 and is an excellent result in what is traditionally a slow period for the Company.
Display Advertising revenues grew by 35 percent compared to the same period last year. This is largely attributable to the success of our recently launched special offers which have already proven popular among various partners. On top of that, pricing for advertising slots also developed positively with CPMs matching those of Q4 2010, which itself proved to be an excellent quarter. The Premium marketing strategy also continued to good effect with the platform's improved range also playing a key role in this success. During Q1, XING had 4.02 million unique users, which is a new record and highly appealing for advertising partners looking to target affluent business professionals.
Company Profiles also achieved strong growth in Q1 2011. Over 46 thousand companies now have a Company Profile ("Basic", "Standard" or "Plus"), some 30 percent more than Q4 2010. And since February, both businesses and users alike can benefit from an exciting partnership between XING and kununu that allows employees to post employer reviews in German, which in turn helps business to boost their image. kununu employer reviews are linked to "STANDARD" and "PLUS" paid Company Profiles and provide XING members with an insight into the company with ratings based on "working environment", "career opportunities" and "application process" as well as a list of any special benefits. Users can click on a link from within the Company Profile which directs them to the kununu portal where they can post an anonymous review in German.
XING provides business users with communication options that have already proven popular in private online use. As of the product offensive launched in March 2011, XING makes it even easier and quicker for its more than 10 million members to communicate with their contacts, find out and let other people know about activities, tips and news, and share platform-related content with their network.
The "What's new in your network" feature has grown to become the key source of information for XING members, which is why it was the main focus of the new developments. Users can now comment on status updates, event participations, forum posts, news and a range of other activities they or other users have posted. In addition, users can "like" an item or share it with their own network. Anyone wanting to spread the word beyond the realms of XING can also tick the box next to the Twitter icon so that their message will be posted both on XING and as a tweet.
This allows users to follow the comments and opinions of people in their business network, and to generate new contacts by means of open discussion. The user's homepage offers a summary of the topics currently under discussion in their own network or their contacts' networks. This in turn provides members with an enhanced and in-depth overview of industry trends and information.
New filters allow information to be filtered by the categories jobs, groups, events, and status updates. XING provides business users with the latest Web 2.0 communication tools to make it even easier for them to communicate directly with one another and thus boost opportunities for discussion.
The new "Activity" tab in a person's profile is also a new addition that provides members with a list of their own activity on the platform. In addition, it gives members an opportunity to present themselves, initiate discussions, provide recommendations, and get recruiters' and potential job candidates' attentions by demonstrating their expertise. This then pairs up with a member's CV as another way of managing and boosting their online reputation.
XING users, who are already far more active than the users of any other business network in the world, now have a number of additional direct communication tools available to them to exchange information and ideas more actively than ever before.
With mobile online usage growing rapidly, XING has released a new version of its new mobile web app in order to keep pace with this current trend. Mobile visits already account for more than 12 percent of total traffic. This brand new version is available for all HTML5-capable browsers by going to "touch.xing.com" and is just as user-friendly as the native apps.
In addition, the XING App for Android devices has also been revamped and now includes a new design and improved usability along with the "Mobile Handshake" feature, contacts' birthdays. The option to synchronize XING contacts with the phone's address book was highly sought after and has now also been launched.
Following the technical integration of its subsidiary amiando, XING now offers its members an integrated ticketing service in line with user demand. In 2010 alone, XING members organized
Interim group management report
some 180 thousand events, including 70 thousand paid events, via the platform with the aim of forging online contacts at reallife events. Every XING user can now offer and sell tickets via the platform. PLUS events can be created and posted in just a few minutes thanks to the simple layout covering the entire event management process from registration to billing and on to admission management. This helps to link XING to its users' daily business more than ever before.
XING members can use the platform to organize business events such as congresses, seminars, specialist conferences, and networking events. Up until now, organizers had to use their own billing processes, but this is a thing of the past as the entire billing and ticket dispatch processes are fully integrated into the XING platform. This new solution offers organizers the opportunity to create a number of different ticket categories complete with availability and individual pricing as well as promotion codes. On top of all that, organizers also have access to a range of different ticket sale statistics. XING charges a processing fee for every ticket sold.
Public events are visible to XING members who may be interested in them. This allows organizers on XING to advertise their events to the attractive and affluent target group of business professionals and to reach up to ten million members on the platform. XING members benefit from end-to-end services and do not need to enter their payment details on any other external platforms.
XING AG took over amiando AG, Europe's leading tool for online event registration, beginning of January, 2011.
XING AG has integrated kununu employer reviews into its Company Profiles product. This move gives companies more scope to boost their reputation as an employer within the business community as they can use their Company Profile to highlight their employee benefits such as flexible working hours or an in-house canteen.
XING Company Profiles are linked to kununu's employer rating service where current and former employees and job applicants can post reviews in German. XING members can find this information in the "About this company" tab which is available to companies with a "STANDARD" or "PLUS" Company Profile. This addition to the Company Profiles product provides XING members with an insight into the company with ratings based on "working environment", "career opportunities" and "application process" as well as a list of any special benefits. Users can click on a link from within the Company Profile which directs them to the kununu portal where they can post an anonymous review in German.
kununu is the largest employer review platform in Germany, Austria, and Switzerland, and hosts around 130 thousand reviews about 55 thousand companies.
German IT magazine Computer Bild tested 46 online service providers in terms of privacy and data protection. XING achieved the best result of all the social networks tested with an overall rating of 1.98 (based on the German system – this equates to "good" in English). Computer Bild checked to see what user data was required to register or sign up to a contract while also investigating how providers use the data entered. The final test component involved an investigation into the providers' privacy policies from a legal perspective.
XING takes the approach that users should always retain full control over their own data. This principle was continued while launching new products in March 2011. To be more specific, this means that XING members can choose whether their status updates and any subsequent discussions are only available to their own contacts or the entire XING network.
Control over data was also taken into account in the "Activity" tab where the default setting for content shown there means that it is only visible to a user's own contacts. Users can of course edit this setting so that this information is completely invisible or, inversely, available to everyone on XING.
In Q1 2011, XING continued to pursue its proven development agility by deploying specialist development teams. To this end, a number of new approaches were introduced to facilitate portfolio management across multiple projects.
From a product perspective, Q1 was defined by an increase in added value for users based on improvements to core features, events, and Company Profiles. In addition, the strategic development and enhancement of mobile services was also hotly pursued with a focus on increasing interaction levels. The following points formed the basis of developments in Q1 2011.
• All members are able to organize and process "Events PLUS" – for-a-fee events with ticketing – via XING/amiando
In order to ensure that our platform continues to be available as much as possible and to develop it even further, XING uses both tried-and-tested Perl technology as well as the innovative web development framework Ruby on Rails. Specialist teams ensure that we create and deploy futureproof architecture along with the latest frontend technology versions and platform application structures. XING has a large team working on its mobile applications.
Permanent monitoring and management of risks is one of the key tasks of a listed company. To this end, XING has implemented an early risk detection system required in accordance with section 91 (2) AktG. Each individual employee is called on to actively look for and prevent potential damages to the Company. Their task is to immediately remove all risks in their own area of responsibility, and to immediately notify the responsible parties in the event of any indications of existing risks that may arise. An essential requirement for such a task is knowledge of the risk management system and maximum risk awareness of each individual employee.
Accordingly, employees are familiarized with the risk management system via periodic introductory seminars, and by means of informational material, and their attention is drawn to the significance of risk management.
Potential risks are continually identified and analyzed. Identified risks are then systematically evaluated as to their probability of occurrence, and the expected potential damage. The risk owners and division heads are regularly queried as to the status of existing risks and the identification of new risks.
Since the reporting of risks in the 2010 Annual Report, the Company has not identified any notable new risks.
Hamburg, May 2011
The Executive Board
| Dr. Stefan Gross-Selbeck | Ingo Chu |
|---|---|
Dr. Helmut Becker Jens Pape
for the period from January 1 to March 31, 2011
for the period from January 1 to March 31, 2011
| in € thousand | 01/01/2011 – 03/31/2011 |
01/01/2010 – 03/31/2010 |
|---|---|---|
| Service revenues | 15,417 | 12,317 |
| Other operating income | 235 | 281 |
| Total operating income | 15,652 | 12,598 |
| Cost of materials | 0 | 0 |
| Personnel expenses | (5,448) | (4,744) |
| Marketing expenses | (1,140) | (1,628) |
| Other operating expenses | (3,441) | (2,923) |
| EBITDA | 5,623 | 3,303 |
| Depreciation | (1,467) | (1,234) |
| EBIT | 4,156 | 2,069 |
| Financial income | 32 | 19 |
| Financial expenses | 0 | 0 |
| EBT | 4,188 | 2,088 |
| Taxes on income | (1,493) | (831) |
| Net income | 2,695 | 1,257 |
| Earnings per share (undiluted) in € | 0.51 | 0.24 |
| Earnings per share (diluted) in € | 0.51 | 0.24 |
Consolidated interim financial statements
for the period from January 1 to March 31, 2011
| in € thousand | 01/01/2011 – 03/31/2011 |
01/01/2010 – 03/31/2010 |
|---|---|---|
| Total result | 2,695 | 1,257 |
| Curreny translation adjustment | (2) | 7 |
| Other result | (2) | 7 |
| Total result of the period | 2,693 | 1,264 |
as of March 31, 2011
| Assets in € thousand | 03/31/2011 | 03/31/2010 |
|---|---|---|
| Non-current assets | ||
| Intangible assets | ||
| Purchased software | 2,460 | 2,888 |
| Self-developed software | 7,990 | 6,652 |
| Goodwill | 21,363 | 13,440 |
| Other intangible assets | 3,073 | 4,276 |
| Property, plant and equipment | ||
| Tenant improvements | 899 | 977 |
| Other plant and machinery | 2,263 | 1,590 |
| Down payments to assets under construction | 0 | 0 |
| Financial assets | ||
| Equity participations | 50 | 50 |
| Other financial assets | 30 | 24 |
| Deferred tax assets | 490 | 346 |
| 38,618 | 30,243 | |
| Current assets | ||
| Receivables and other assets | ||
| Receivables from services | 5,171 | 3,498 |
| Tax refund assets | 126 | 131 |
| Other assets | 1,274 | 1,100 |
| Cash and cash equivalents and other current deposits | 62,913 | 49,964 |
| 69,484 | 54,693 | |
| 108,102 | 84,936 |
To our shareholders Financial information Service
Consolidated interim financial statements
| Liabilities in € thousand | 03/31/2011 | 03/31/2010 |
|---|---|---|
| Shareholders' equity | ||
| Subscribed capital | 5,292 | 5,272 |
| Treasury stock | (3,041) | (3,041) |
| Capital reserves | 29,586 | 40,586 |
| Other reserves | 15,101 | 2,976 |
| Cumulative profit | 17,170 | 8,521 |
| 64,108 | 54,314 | |
| Non-current liabilities | ||
| Deferred tax liabilities | 2,888 | 2,801 |
| Deferred income | 1,632 | 1,345 |
| 4,520 | 4,146 | |
| Current liabilities | ||
| Trade accounts payable | 591 | 1,022 |
| Deferred income | 21,587 | 17,316 |
| Tax provisions | 6,104 | 3,395 |
| Other liabilities | 11,192 | 4,743 |
| 39,474 | 26,476 | |
| 108,102 | 84,936 |
17
for the period from January 1 to March 31, 2011
| in € thousand | 01/01/2011 – 03/31/2011 |
01/01/2010 – 03/31/2010 |
|
|---|---|---|---|
| Earnings before tax | 4,155 | 2,088 | |
| Depreciation on capitalized development costs | 530 | 427 | |
| Depreciation | 937 | 807 | |
| Personnel expenses stock option program | 236 | 362 | |
| Interest income | (32) | (19) | |
| Interest received | 32 | 19 | |
| Interest expenses | 0 | 0 | |
| Taxes paid | (222) | (70) | |
| Profit from disposal of fixed assets | 0 | 0 | |
| Change in receivables and other assets | (1,047) | 3,121 | |
| Change in liabilities and other liabilities | 2,988 | 34 | |
| Change in other assets and liabilities due to the acquisition of consolidated companies |
(1,802) | 0 | |
| Change in deferred income | 2,988 | 2,428 | |
| Cash flow from operating activities | 8,763 | 9,197 | |
| Capitalization of self-developed software | (396) | (726) | |
| Purchase of other software | (506) | (175) | |
| Purchase of other intangible assets | (22) | (700) | |
| Result from the disposal of fixed assents | 0 | 0 | |
| Purchase of property, plant and equipment | (229) | (502) | |
| Purchase of consolidated companies | (5,074) | 0 | |
| Changes in cash and cash equivalents due to the acquisition of consolidated companies |
1,343 | 0 | |
| Investment in other financial assets | 0 | 0 | |
| Cash flow from investing activities | (4,884) | (2,102) |
To our shareholders Financial information Service
Consolidated interim financial statements
| in € thousand | 01/01/2011 – 03/31/2011 |
01/01/2010 – 03/31/2010 |
|---|---|---|
| Capital increases | 0 | 0 |
| Repayment of liabilities from finance leases | 0 | 0 |
| Interest paid | 0 | 0 |
| Cash flow from financing activities | 0 | 0 |
| Differences due to currency translation | (2) | 7 |
| Change in cash and cash equivalents | 3,877 | 7,102 |
| Cash and cash equivalents at the beginning of the period | 59,036 | 42,862 |
| Cash and cash equivalents at the end of the period1) | 62,913 | 49,964 |
1) Cash and cash equivalents are liquid assets
for the period from January 1 to March 31, 2011
| in € thousand | Subscribed capital |
Capital reserved |
Treasury stock |
|
|---|---|---|---|---|
| As of Jan. 1, 2010 | 5,272 | 40,586 | (3,041) | |
| Currency translation | 0 | 0 | 0 | |
| Total income and expense for the period recognized directly in the equity | 0 | 0 | 0 | |
| Net income | 0 | 0 | 0 | |
| Net result | 0 | 0 | 0 | |
| Addition from stock option program | 0 | 0 | 0 | |
| As of March 31, 2010 | 5,272 | 40,586 | (3,041) | |
| As of Jan. 1, 2011 | 5,292 | 29,586 | (3,041) | |
| Currency translation | 0 | 0 | 0 | |
| Result recognized directly in equity | 0 | 0 | 0 | |
| Net income | 0 | 0 | 0 | |
| Total result for the period | 0 | 0 | 0 | |
| Reclassification due to offset of losses at XING AG | 0 | 0 | 0 | |
| Capital increase from share-based payment | 0 | 0 | 0 | |
| Addition from stock option program | 0 | 0 | 0 |
Consolidated interim financial statements
21
| Equity total |
Cumulative profit |
Other reserves |
|---|---|---|
| 52,688 | 7,264 | 2,607 |
| 7 | 0 | 7 |
| 7 | 0 | 7 |
| 1,257 | 1,257 | 0 |
| 1,264 | 1,257 | 7 |
| 362 | 0 | 362 |
| 54,314 | 8,521 | 2,976 |
| 61,179 | 14,475 | 14,867 |
| (2) | 0 | (2) |
| (2) | 0 | (2) |
| 2,695 | 2,695 | 0 |
| 2,693 | 2,695 | (2) |
| 0 | 0 | 0 |
| 0 | 0 | 0 |
| 236 | 0 | 236 |
| 64,108 | 17,170 | 15,101 |
for the period from January 1 to March 31, 2011
The consolidated interim financial statements for the quarter ending on March 31, 2011 have been prepared in accordance with the International Financial Reporting Standard for Interim Financial Statements (IAS 34) adopted by the EU.
The reporting period comprises the period from January 1, 2011 to March 31, 2011. The comparison period is the period between January 1, 2010 and March 31, 2010.
The accounting policies applied in the consolidated interim financial statements correspond to the methods applied in the consolidated financial statements for the period ending December 31, 2010.
The useful lives of the self-created user platform of XING AG was defined as five years as of January 1, 2011. The remaining useful life for the self-developed web site is thus a further 57 months on March 31, 2011.
The consolidation group in the consolidated interim financial statements comprises the following companies:
| Equity holding 03/31/2011 in % |
Equity holding 03/31/2010 in % |
Initial consoli dation |
Equity 03/31/2011 in € thousand |
Result Q1/2011 in € thousand |
|
|---|---|---|---|---|---|
| XING Hong Kong Ltd., Hong Kong, China | 100 | 100 | 2006 | (45) | (1) |
| openBC Network Technology (Beijing) Co. Ltd., Beijing, China | 100 | 100 | 2006 | 30 | 0 |
| Grupo Galenicom Tecnologias de la Informacion (eConozco), S.L., Barcelona, Spain |
100 | 100 | 2007 | (6) | (1) |
| XING International Holding GmbH, Hamburg, Germany | 100 | 100 | 2007 | (31) | 0 |
| XING Networking Spain, S.L., Barcelona, Spain1) | 100 | 100 | 2007 | 169 | 43 |
| EUDA Uluslararasi Danismanlik ve Bilisim Hizmetleri Limited Sirketi (XING Turkey), Istanbul, Turkey2) |
100 | 100 | 2008 | 118 | (3) |
| XING Switzerland GmbH, Sarnen, Switzerland1) | 100 | 100 | 2008 | 31 | 2 |
| XING Italy S.R.L., Milan, Italy1) | 100 | 100 | 2009 | 35 | 0 |
| Socialmedian Inc., Wilmington, Delaware, USA | 100 | 100 | 2009 | 0 | 0 |
| XING Insan Kaynaklari Uluslararasi Danismanlik Hizmetleri Ltd. Sti., Istanbul, Turkey2) |
100 | 0 | 2010 | (3) | (2) |
| amiando GmbH, Hamburg, Germany (formerly XING Events GmbH) | 100 | 0 | 2010 | 74 | (479) |
1) 100 percent are held indirectly via a holding of 100 percent in XING International Holding GmbH, Hamburg, Germany.
2) 99.5 percent are held indirectly by XING International Holding GmbH, Hamburg, Germany, and 0.5 percent are held directly by XING AG.
Consolidated interim financial statements
In December 2010, XING AG acquired Kronen tausend615 GmbH with registered offices in Berlin with subscribed capital of €25 thousand. In December 2010, the latter acquired 100 percent of the shares in the Munich-based events platform amiando AG. The shares were transferred on January 5, 2011. The purchase price consisted of a fixed component of €7.4 million and additional earn-outs in a range of €0.00 to 3.3 million. The exact amount will be finally determined in approximately two years' time depending on the business development of amiando AG. The earn-out payment is also due at that time.
In April 2011, amiando AG was merged retrospectively with effect from December 30, 2010 with XING Events GmbH, and was simultaneously renamed amiando GmbH.
It was initially consolidated at the point at which the shares were transferred.
The outflow of cash due to the company acquisition is shown in the following:
| in € thousand | |
|---|---|
| Purchase price | (5,074) |
| Acquisition of directly attributable costs | (539) |
| Cash acquired with the subsidiary | 1,343 |
The purchase price allocation was carried out on a provisional basis in the consolidated interim financial statements for the period ending March 31, 2011. The purchase price will be definitively allocated to the identifiable and measurable assets in the course of the financial year 2011 on the basis of a report for which an order has already been placed. Goodwill to be recognized is
attributable to anticipated synergies and other effects from the activities of amiando.
All internal balances, transactions, income and expenses as well as all results arising from internal transactions have been fully eliminated.
In the first quarter of 2011, no further stock options were issued from the existing stock option programs. The total costs of the existing commitments amounted to €236 thousand in the first quarter of 2011 (comparison quarter: €362 thousand).
The respective stock option commitments have been measured by Mercer Deutschland GmbH.
Holdings of treasury shares are unchanged compared with the corresponding previous year quarter.
The assets comprising self-developed software increased by €396 thousand in the three-month period ending March 31, 2011 (corresponding previous year period: €726 thousand). The capitalized self-developed software comprises costs of further developments and further functions of the web site of XING.
The Group invested a total of €757 thousand in the acquisition of EDP software and hardware as well as other business equipment in the first quarter of 2011 (corresponding previous year quarter: €502 thousand).
The following overview breaks down the main items of other operating expenses:
| in € thousand | 01/01/2011 – 03/31/2011 |
01/01/2010 – 03/31/2010 |
|---|---|---|
| IT services, management services and services for new markets |
549 | 882 |
| Legal advice, auditing and account ing fees |
573 | 422 |
| Office costs | 366 | 336 |
| Payment costs | 439 | 324 |
| Server hosting, management and traffic |
549 | 388 |
| Travel, entertainment and other business expenses |
221 | 171 |
| Other personnel expenses | 138 | 119 |
| Training costs | 59 | 43 |
| Losses on receivables | 52 | 104 |
| Phone/cell/postage/courier costs | 49 | 51 |
| Office supplies | 23 | 41 |
| Supervisory board compensation | 40 | 14 |
| Other | 383 | 94 |
| Total | 3,441 | 2,989 |
By way of contrast with the previous year, costs of further training (€59 thousand, previous year: €43 thousand) and tax-free voluntary social expenses (€16 thousand, previous year: €23 thousand) are not shown in personnel expenses, and instead are shown under the operating expenses. The previous year figures have been adjusted accordingly.
The other expenses mainly comprise expenses attributable to other periods, exchange rate differences, insurance and premiums as well as other costs.
XING AG has a reportable segment with "Subscriptions" (subscription memberships), "e-Recruiting" (job advertisements and recruiter memberships), "Advertising" (display advertising, enterprise groups, Best Offers and Company Profiles), "New Verticals" and "Other". The increase in "New Verticals" is due to the acquisition and initial consolidation of the Munich-based events platform amiando AG.
The sales broken down for the reporting period are shown in the following tables:
| in € thousand | 01/01/2011 – 03/31/2011 |
01/01/2010 – 03/31/2010 |
|---|---|---|
| Subscriptions | 11,132 | 10,074 |
| e-Recruiting | 2,710 | 1,437 |
| Advertising | 1,054 | 774 |
| New Verticals | 507 | 2 |
| Other | 14 | 30 |
| Total | 15,417 | 12,317 |
| in € thousand | 01/01/2011 – 03/31/2011 |
01/01/2010 – 03/31/2010 |
|---|---|---|
| D-A-C-H | 14,759 | 11,883 |
| International | 658 | 434 |
| Total | 15,417 | 12,317 |
Because of the minor nature of changes, non-current assets have not been shown.
Consolidated interim financial statements
As was the case in the previous year, the Group did not lease any assets in the first quarter of 2011. There are no other contingent liabilities, nor have any other contingent liabilities existed in the past.
Further services of epublica GmbH were utilized in the first quarter of 2010 (€28 thousand, previous year period: €24 thousand).
Services of DLD Media GmbH which belongs to the Burda Group were also utilized (€48 thousand, previous year period: €90 thousand).
There have been no major events after the end of the first quarter.
Hamburg, May 9, 2011
Dr. Stefan Gross-Selbeck Ingo Chu
Dr. Helmut Becker Jens Pape
Financial calendar 2011 Masthead & contact
| Date | Event |
|---|---|
| May 10, 2011 | Interim Report Q1 2011, Hamburg |
| May 26, 2011 | Annual General Shareholder Meeting, Hamburg |
| August 10, 2011* | Interim Report HY1 2011, Hamburg |
| November 10, 2011* | Interim Report Q3 2011, Hamburg |
* Subject to change
This interim financial report is available in German and English. You can find both versions and additional press information on the Internet at www.xing.com.
For Annual Reports, Interim Reports, and current financial information about XING AG, please contact:
XING AG Patrick Möller Investor Relations Gaensemarkt 43 20354 Hamburg Phone +49 40 41 91 31 - 793 Fax +49 40 41 91 31 - 44
Chief Editor Patrick Möller
Sonja Heer Dr. Felix Menden Ines Rathgeb
Concept and Design HGB Hamburger Geschäftsberichte For press enquiries and current information about XING AG, please contact:
Corporate Communications Phone +49 40 41 91 31 - 763 Fax +49 40 41 91 31 - 11 [email protected]
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