LONDON, August 31, 2001 (PRIMEZONE) -- QXL ricardo plc ("QXL" or the "Group") (LSE:QXL.L) (Nasdaq:QXLC) (Frankfurt:QXL.F), the pan-European online auction company, today announces results for the first quarter ended June 30, 2001.
Commenting on the results Jim Rose, Chief Executive Officer, said:
"We are very pleased with the results for the quarter as we continued to improve the customer experience, monetized more of our member base, reduced our trading loss and remained focused on profitability. Our gross profit margin increased to a record 69%, up from 32% in the previous quarter, demonstrating our successful migration to an agency model. We have also recently introduced our fixed price service, continuing to reaffirm our position as a mainstream e-commerce marketplace."
First Quarter ended June 30, 2001 - Operating and Financial Highlights:
-- Trading loss decreased 38% over the quarter ended June 30, 2000 to
8.5 million pounds.
-- Record gross profit - increased 142% over the quarter ended June
30, 2000 to 1.07 million pounds.
-- Increase in gross profit margin to 69% from 23% in the quarter
ended June 30, 2000.
-- Gross auction value increased 109% over the quarter ended June 30,
2000 to 26.4 million pounds.
-- 3.1 million members at quarter end, a 186% increase over the
quarter ended June 30, 2000.
Recent developments:
-- Launched fixed price service by introducing a "Buy Now" facility
that provides members with the option to buy the item instantly
for a fixed price.
-- Success fees introduced in Denmark; with further fee
implementations expected in the current quarter, demonstrating a
continued focus on monetizing our member base.
-- Microsoft Passport authentication feature on track to be
introduced this quarter, removing the need for a second,
independent authentication of user details on the QXL site.
-- Announced plan to develop .NET application QXL XPress in co-
operation with Compaq, Intel and Razorfish, providing instant
access to the QXL service from the desktop. To be launched in
conjunction with Windows XP on October 25th 2001.
-- Developed strategic relationship with eBookers to co-promote
services across Europe offering members increased choice in travel
products.
Launched further major product enhancements:
-- Launched "QXL Live" for sellers in the UK, a product unique to QXL
ricardo, enabling sellers to moderate their own "Live" auctions
giving them real-time, interactive access to their bidders.
-- Introduced "Quickseller", a multiple auction listing program,
enabling sellers to create and upload auctions easily and rapidly.
-- Picture galleries now available, improving the user experience by
allowing members to compare items more easily.
-- "Instant Help" - a service that provides real-time help to our
members via a chat functionality.
Outlook
Going forward, we are confident that our strategic partnerships, marketing initiatives and substantial product enhancements will provide us with a solid platform for future growth. We will continue to maintain our focus on increasing profits and on cost reduction. We also expect our trading losses and cash burn to continue to fall on a quarterly basis over the next year.
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