- Revenues increase by 22 percent
- Accelerated member growth in D-A-CH: Increase of 805 thousand to 5.3 million
- Executive Board suggests dividend of around €0.56 per share to Supervisory Board
Hamburg, February 29, 2012 - Preliminary results for the 2011 financial year show that XING AG, the leading business network in German-speaking countries (D-A-CH), has increased its revenues across all business lines. Total revenues rose by 22 percent from €54.3 million in 2010 to €66.2 million in 2011. The Company’s operating result (EBITDA) increased by 33 percent from €16.7 million in 2010 to €22.2 million in 2011, which equates to a margin of 34 percent and three percentage points above the value for 2010.
In terms of social recruiting, XING expanded its market leadership in D-A-CH with e-Recruiting revenues of €11.7 million, an increase of 65 percent compared to €7.1 million in 2010. Advertising revenues rose by 35 percent from €3.9 million in 2010 to €5.3 million in 2011. Revenues from Events, which were reported for the first time in the Company’s history, totaled €2.5 million. Revenues from Premium memberships grew by seven percent from €42.4 million in 2010 to €45.6 million in 2011.
Stefan Gross-Selbeck, CEO at XING AG, said that “2011 was a good year for XING. We completely relaunched our site, expanded our product offering in areas such as mobile, and grew revenues across all business lines. We also welcomed 800 thousand new members to the platform, an increase of 76 thousand over the previous year. This shows that the trend towards professional networking is still growing rapidly.” At the end of December 2011, XING had 5.3 million members in D-A-CH (4.5 million in December 2010) and 11.7 million worldwide.
Growth potential remains strong in D-A-CH, one of the world’s key economic regions: “We currently have around five percent market penetration viewed in terms of the total population in D-A-CH. We see the potential to double the number of members we have in that region over the coming years.” As a result of this growth potential, XING chose to focus on D-A-CH some time ago. The annual impairment test conducted by the Company’s management presented the need to adjust values resulting from corporate transactions between 2006 and 2008 that amount to €14.4 million. This value adjustment does not affect the Company’s cash flow, but impacts on the Company’s consolidated income statement under IFRS. As a result, the Company reported consolidated earnings of €-4.6 million (2010: €7.2 million). Following the adjustment, the Company reported consolidated earnings of €9.4 million, which represents an increase of 31 percent.
Executive Board suggests dividend of around €0.56 per share to Supervisory Board
At a meeting held on February 29, the Executive Board agreed to put forward a proposal to the Supervisory Board suggesting the Company’s first-ever dividend payment of around €3 million or €0.56 per share to be paid out to the XING AG shareholders one day after the AGM on June 15, 2012. Stefan Gross-Selbeck said that “Despite investing in our growth strategy, our business model allows us to pay our shareholders a dividend as a way of involving them in our Company’s solid development.” The XING AG share was one of the top performers on the TecDAX index in 2011.
XING will publish its final figures and annual report on March 29, 2012.
XING is the social network for business professionals. More than 11 million members worldwide use XING to boost their business, job, and career. XING is a platform where professionals from all kinds of different industries can meet up, find jobs, colleagues, new assignments, cooperation partners, experts and generate business ideas. Members can meet and exchange views in over 50,000 specialist groups, while also getting together at networking events. The platform is operated by XING AG, which was founded in Hamburg, Germany, in 2003, has been publicly listed since 2006, and listed on the TecDAX since September 2011. In December 2010, XING acquired amiando AG, a Munich-based company and Europe’s leading provider of online event management and ticketing. Please visit www.xing.com for more information.