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Q3 looks even bleaker than previous quarters with a drop in revenues of 22% compared with the same period last year. Nevertheless the company has lost this year only EUR 55,4 Mill so far, compared to EUR 112,4 Mill first 3 quarters 2001.
The huge advertizing deal Lycos co-owner Bertelsmann sacked earlier this year is one of the main problems.
But a portal relying on advertizing money today does not have a sound business model.
What is Lycos.Europe chairman Mohn's answer: Cost reduction and paid services. Basically the same transition rival Yahoo has successfully undergone.
But is there any potential for Lycos Europe for further cost reduction? The company has laid off more than 500 employees this year...
In Germany speculations are Bertelsmann is going to sell their stakes in the group. Bertelsmann has recently reevaluated their overall strategy and internet business doesn't belong to the core business areas anymore.
Where would that leave Lycos?
i assume that Lycos must reduce the costs, but also perhaps their advertising model.
In anyway you look at lycos results, in the search or in the directory, you always have a lots of advertising (more than 50%?).
The turn altavista just took in the light new design, is surely a diffcult descision, but i believe it might be the good one. But the question is does Lycos have the cashflow to take such a turn, which might take some time?
Well in my opinion, it should make it, but anyway employes are going to pay the bill, which is fairly not good for them and the image of Lycos, but perhaps a good way to maintain this portal.
