Terra Reports an Increase of 7% in Revenues in the First Quarter of 2005
12 Mai 2005 - 4:13PM
PR Newswire (US)
Terra Reports an Increase of 7% in Revenues in the First Quarter of
2005 Net income improved by 36 million euros vs. 1Q04 MADRID,
Spain, May 12 /PRNewswire-FirstCall/ -- Terra Networks, S.A., (MC:
TRR; Nasdaq: TRRA), the world's leading Spanish and Portuguese
internet group today released its financial results for the first
quarter to 2005, and comparisons with the same period in 2004. The
financial information contained in this document has been prepared
according to the International Financial Reporting Standards
(IFRS), which the Terra Group has adopted since the 1st of January
2005. According to this new rules, the disinvestments in Lycos Inc.
and OneTravel.com, that took place in October 2004 and April 2005,
must be considered as "discontinued activities". This is the reason
why the figures related to Lycos Inc. and OneTravel.com in the
first quarter of 2004 and 2005 have been eliminated, and they have
been included in the line named "Results from the discontinued
activities". Revenues The group reported net revenues of 113
million euros in the first three months of 2005, an increase of
7.2% on the same period last year. The access business accounted
for 49% of revenues; communication, portal and content services for
29%; other corporate and SME services and other revenues for 12%;
and advertising and e-commerce accounted for 10%. Operating
expenses Operating expenses fell by 1%. The group reported total
expenses of 102.4 million euros in the first quarter of 2005,
compared to 103.3 million euros in the same period last year.
Operating income before depreciation and amortisation (OIBDA) Terra
reported OIBDA (operating income before depreciation and
amortisation) of 14.3 million euros in 1Q05 vs. 1.5 million euros
in the same period last year, due to higher revenues recorded in
the company's main markets and to tighter cost control in the past
few quarters. The OIBDA margin was 12.7% at the close of the first
quarter 2005, on the back of higher revenues in Spain and Brazil
(Terra's main markets) and costs savings made on virtually all
operating expense items. We highlight the decline in personnel
costs following the restructuring carried out last year. Net income
Terra reported net income of -1.6 million euros in 1Q05, an
increase of 36 million euros vs. the first three months of 2004.
Cash The cash balance was 544 million euros, a fall of 1,074
million euros vs. March 2004, due mainly to the distribution of
1,136 million euros in dividends (2 euros per share) made at the
end of July 2004. Operating Results: 6.8 million customers Terra
had 6.8 million paid access and portal services customers in 1Q05,
a rise of 28% vs. 1Q04. The Group had a total of 1.84 million paid
access subscribers at March 31, 2005. We would highlight the 58%
increase in broadband subscribers, mainly ADSL, compared to March
2004. The Group had 1.1 million broad band customers, of which 68%
were in Brazil, 16% in Spain and 12% in Chile. We would also
highlight the rise in paid communication and portal services
customers (4.93 million at March 2005). This figure is 40% up on
the same period last year. In 1Q05 Terra promoted its
client-orientated model and launched new value- added products and
services. Highlights of these include: -- The upgrade and
improvement of broadband communication services, such as doubling
speeds in Spain and Latin America. -- The launch of e-mail plus
with 1Gb capacity, in Brazil. Terra is the first ISP to offer 1
gigabyte email services in the Brazilian internet sector,
increasing capacity to allow users to save thousands of messages,
receive photos, music and videos in their email accounts. -- The
launch of the Fotolog service in Colombia and Argentina (the number
of subscribers in the latter rose to 30,000 in one month).
CONSOLIDATED STATEMENT OF OPERATIONS (in thousand of Euros - NIIF)
Unaudited Three months Mar-31 2005 2004 (1) Revenues 112,971
105,412 Internal expenditures 108 182 Operating expenses Supplies
-53,346 -52,127 Personnel -16,769 -19,974 Subcontracts -29,756
-29,113 Taxes -2,562 -2,087 Other net operating income (expense)
3,454 -1,676 Gain (loss) on sale of fixed asset 216 865 Impairment
of goodwill and other asset 0 0 Operating income before D&A
OIBDA 14,316 1,482 Depreciation and amortization -19,752 -24,422
Operating income -5,436 -22,940 Profit from associated companies
-2,280 -4,850 Net financial income (expense) 2,917 7,075 Income
before taxes -4,799 -20,715 Income taxes 3,185 10,541 Income from
continuing operations -1,614 -10,174 Income (loss) from
discontinued operations 43 -29,764 Minority interest 3 2,018 Net
income -1,568 -37,920 Average shares 561,302 561,012 (1) Revenue by
business line and some operating expenses show slight variations
from previously reported figures due to reclassifications
CONSOLIDATED BALANCE SHEET (in thousands of Euros - Spanish GAAP)
Audited Mar-31 2005 2004 Assets Non-current Assets: Intangible
assets 202,128 268,205 Goodwill 72,415 138,060 Property, plant and
equipment and investment property 10,949 41,641 Long term financial
asset and other noncurrent assets 234,653 294,152 Deferred tax
asset 9,060 15,780 Total Non-current Assets: 529,205 757,838
Current assets Cash and cash equivalent 865,666 1,607,727 Other
current assets 140,239 131,326 Total current Assets: 1,005,905
1,739,053 TOTAL ASSETS 1,535,110 2,496,891 Liabilities Equity
attributable to equity holders of the parent 1,308,514 2,215,642
Minority interest 0 904 Non current liabilities 76,528 96,078
Current Liabilities 150,068 184,267 TOTAL LIABILITIES 1,535,110
2,496,891 OIBDA Mar-31 2005 2004 % Operating loss (5,436) (22,940)
76% Depreciation and amortization 19,752 24,422 19% OIBDA 14,316
1,482 866% OIBDA MARGIN 12.7% 1.4% 11,3 b.p. OPERATING DATA (in
thousands) Mar-31 2005 2004 % Total Paid Subscribers (1) 6,767
5,273 28% Access: Narrowband 688 1,020 -33% Broadband 1,149 726 58%
Total 1,837 1,746 5% VAS (CSP/Portal): 4,930 3,528 40% Broadband
Access Subscribers: Spain 185 184 1% Latam 964 542 78% Total 1,149
726 58% (1) Based on number of services delivered. Some subscribers
may be contracting access and Value Added Services at the same
time. DATASOURCE: Terra Networks, S.A. CONTACT: Pablo Fuentes,
Corporate Communications, +34-91-452-4248, , or Investors, Miguel
von Bernard, +34-91-452-3922, , both of Terra Networks, S.A.
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