25/06/2003

Further reductions in trading loss

QXL ricardo plc ("QXL" or the "Group"; LSE), the pan-European online auction company, today announces results for the fourth quarter and the year ended 31 March 2003.

Commenting on the results Mark Zaleski, Chief Executive Officer, said:
"The results for the year reflect good growth in transactions conducted across our sites and huge progress in reducing our operating costs. We are consolidating our market-leading position in a number of countries and have moved much closer to profitability over the last few quarters.

Since the year end, site migrations and fee introductions have significantly impacted the number of transactions but revenue levels have been maintained. We anticipate that these changes will improve transactional revenue growth in the medium term.

We remain extremely focussed on our cash position and are conscious that in the next few months we are dependent on a number of planned tax-related cash receipts that are outside of our direct control. The directors are reviewing alternative financing arrangements and the possible sale of assets to cover the risk of current assumptions not being met."

Year ended 31 March 2003 - Highlights

  • Gross profit increased 2% to £5.0 million, compared to £4.9 million for the year ended 31 March 2002 despite exclusion of numbers relating to QXL Poland for the quarter to 31 March 2003
  • Operating expenses (excluding exceptional items and goodwill) decreased 49% to £15.2 million, compared to £30.1 million for the year ended 31 March 2002
  • Trading loss decreased 59% to £10.3 million, compared to £25.2 million for the year ended 31 March 2002
  • Loss on ordinary activities before taxation decreased 53% to £18.7 million compared to £39.9 million for the year ended 31 March 2002
  • Cash balance at 31 March 2003 of £2.7 million

Fourth quarter ended 31 March 2003 - Highlights

  • Gross profit decreased 38% to £774,000 compared to £1.3 million for the quarter ended 31 March 2002 as a result of exclusion of numbers relating to Poland and lower advertising revenues
  • Operating expenses (excluding exceptional items and goodwill) decreased 55% to £2.9 million, compared to £6.5 million for the quarter ended 31 March 2002
  • Trading loss decreased 59% to £2.1 million, compared to £5.2 million for the quarter ended 31 March 2002
  • Loss on ordinary activities before taxation decreased 68% to £4.5 million compared to £14.2 million for the quarter ended 31 March 2002


For further enquiries please contact:

QXL ricardo plc
Mark Zaleski, Chief Executive Officer
Robert Dighero, Chief Financial Officer
Tom Parkinson, Company Secretary+44 20 8962 7106



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