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ecorp in profit !!!!!!!

  1. singas

    2,961 Posts.


    HOMEX - Sydney



    Internet investment company, ecorp (ASX:ECP) today announced an
    unaudited interim operating profit before tax (excluding the
    non-recurring items below) of $1.4 million for the six months to 31
    December 2002, compared with a $5.1 million loss for the previous
    corresponding period. This represents earnings per share of 0.2 cents
    for the half. The $1.4 million operating profit includes interest
    income of $3.2m, up 88% from the previous first half, largely due to
    interest earned on the proceeds from the sale of eBay Australia & New

    The non-recurring items were a pre-tax profit of $112.2 million from
    the eBay sale and $0.4 million operating profit of eBay Australia and
    New Zealand prior to its sale. After allowing for these non-recurring
    items, ecorp recorded an operating profit before tax of $114.0

    Earnings before interest, tax, depreciation and amortisation
    (EBITDA), excluding non-recurring items, was $3.2 million for the
    period, compared with an EBITDA loss of $1.9 million for the previous
    corresponding half, and an EBITDA profit of $0.9m for the previous

    CEO, Alison Deans said that, while the main driver of the result was
    the sale of eBay, the result also reflected improved operating
    performances in most of the ecorp businesses, including a strong
    performance by Ticketek due to an unusually high level of ticketing

    The company noted that the outlook for the second half of the year
    was difficult to forecast, particularly whether the level of activity
    at Ticketek will be sustained. Contingent upon this performance,
    ecorp may achieve profitability (excluding non-recurring items) for
    the full 2003 financial year. ecorp does expect to be profitable in
    the 2004 financial year, based on its current business portfolio and
    market conditions.

    ecorp has released these unaudited results before the completion of
    the auditors review as part of the shareholder documentation for the
    proposed capital reduction also released today. This is to ensure
    full and timely disclosure to Minority Shareholders.

    The Independent Expert has included these unaudited results and the
    outlook for the 2003 and 2004 financial years in the assessment of
    the proposed selective capital reduction. In particular, the results
    were included in their assessment of the value range for the business
    of 45.1-47.8 cents. (see separate ASX release regarding the Selective
    Capital Reduction proposal)

    Summary of ecorp businesses for the 6 months to 31 December 2002. The
    financial details reflect 100% of each business' operation rather
    than ecorp's proportionate share:


    ninemsn recorded a loss before tax and non-recurring items of $1.9
    million for 100% of the business for the period, compared with a loss
    of $1.5 million the previous corresponding period. The increased loss
    was primarily due to the roll-out of the next generation of MSN


    Ticketek recorded an operating profit before tax of $3.9 million for
    the six months to 31 December 2002, up from $0.4 million for the
    previous corresponding period. The improved result was due to a 33%
    increase in revenue to $34.8 million. The higher revenue was due to
    an unusually large number of concerts and theatre events during the
    period as well as revenue for administering the ticketing process of
    the 2003 Rugby World Cup.


    In December 2002,Wizard completed a transaction which increased its
    ownership from 50% to 100% of AMS Investment Pty Limited. Under the
    terms of the transaction, economic interest accrued to Wizard from 1
    October 2002. ecorp's effective ownership interest in Wizard was
    diluted from 16.7% to 12.5% as a result of this transaction. Assisted
    by the acquisition of AMS, Wizard increased its loan portfolio by
    108% since 30 June 2002, and it reported a pre-tax operating profit
    of $7.3 million for 100% of the business for the period, compared to
    $0.9 million for the previous corresponding period


    A slowdown in the recruiting market contributed to an increase in the
    operating loss for Monster A&NZ, to a loss of $4.2 million for 100%
    of the business, compared to a loss of $2.4 million the previous
    corresponding half.


    A 118% lift in revenue saw Monster Asia reduce its operating loss for
    the period to a loss of $0.5 million for 100% of the business,
    compared with a loss of $2.4 million the previous corresponding half.

    ecorp expects the auditor's review to be complete on or around 4
    March 2003. It will then disclose the final results to the ASX and
    post them on ecorp's website at www.ecorp.com.au.

    For further information please contact
    John Noble
    Ph 0407 0000 40
    61 2 9928 1537


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