Ad-hoc disclosure in accordance with §15 WpHG: Kizoo AG - Q3 Report for Fiscal 2008
Karlsruhe, October 23, 2008. Kizoo AG (ISIN: DE000CMBT111), Karlsruhe, today published its results for the third quarter of fiscal 2008. The newly formulated Technology Venture strategy which – apart from the traditional focal areas – intends to invest in young technology companies was executed for the first time with an investment in the language learning portal Babbel.com during the third quarter.
Furthermore, the third quarter was marked so far by the impact of the financial crisis merely on the balance sheet and not on the income statement. This had a considerable adverse effect on the shareholders’ equity reported in accordance with IFRS (EUR 247.4 million, equity ratio 95.1%). The value of the shareholding in United Internet decreased by EUR 109.7 million during the third quarter. The company sees a significant upside potential and intends to hold its shareholding until the financial markets have recovered considerably. Concerning the remaining portfolio of liquid assets and other securities (carrying value EUR 64 million) senior management sees, against the backdrop of the current situation three weeks after the end of the quarter, a write-off risk of up to EUR 12 million following the creditworthiness and issuer risks triggered by the financial crisis. If these write-off risks were to materialize, this would have a corresponding impact on the planned net income for the year.
The earnings before tax for the first three quarters 2008 amounted to EUR 8.5 million (Q1-Q3/2007: EUR 2.2 million). During the third quarter, the EBIT was EUR –1.6 million and had hence improved, as planned, versus the prior quarter (EUR -1.7 million).
With depreciations and amortizations of EUR 1.8 million during the first three quarters 2008, the EBITDA, ie the earnings before interest, taxes, depreciation and amortization, amounts to EUR –4.1 million (Q1 – Q3/2007: EUR –20.9 million). On a quarter-on-quarter comparison basis the EBITDA for Q3/08 was EUR -1.1 million (Q2/2008: EUR –1.1 million; Q3/2007: EUR -9.1 million).
Annex: Table
| In EUR million | Q3/08 | Q3/07 | Q1-Q3/08 | Q1-Q3/07 |
| General administration costs | (1.6) | (1.9) | (5.2) | (4.9) |
| Operating result from the continuing business line | (1.6) | (1.9) | (5.2) | (4.9) |
| Financial result | 0.6 | 1.2 | 13.7 | 7.1 |
| Tax income (expenses) | 0 | (1.1) | 0 | (1.2) |
| Result from ordinary operations | (1.1) | (1.8) | 8.5 | 1.1 |
| Result from the discontinued operation "ComBOTS" | 0 | (16.8) | (0.7) | (30.1) |
| Result for the period | (1.1) | (18.5) | 7.7 | (29.1) |
| Earnings per share for the period(in EUR) | (0.03) | (0.53) | 0.24 | (0.83) |
| Liquid assets and other securities(UI shares included) | 232.3 | 510.0 | 232.3 | 510.0 |
| Shareholders' equity | 247.4 | 525.0 | 247.4 | 525.0 |
| Balance sheet total | 260.2 | 545.1 | 260.2 | 545.1 |