Monster Worldwide Reports Second Quarter and Six Months 2007 Results

Monster Worldwide Reports Second Quarter and Six Months 2007 Results

Monster Worldwide, Inc. (NASDAQ:MNST) today reported financial results for the second quarter and six months ended June 30, 2007.

Second Quarter Results

Total revenue grew 20%, or 18% before the benefit of foreign exchange rates, to $331 million in the second quarter of 2007 from $275 million in the comparable quarter of 2006.

Monster Careers revenue increased 23% to $291 million, compared with $237 million in last year’s second quarter, led by International revenue growth of 57% to $117 million. Included in International revenue is a $6.0 million benefit from the effect of foreign exchange rates. North American Careers revenue increased 7% to $174 million in the second quarter of 2007, while the Internet Advertising & Fees business grew revenue 5% to $40 million.

Monster Worldwide’s deferred revenue balance at June 30, 2007 was $452 million, representing a 30% increase from last year’s second quarter balance of $349 million.

Income from continuing operations was $29 million, or $0.22 per diluted share, in the second quarter of 2007. Income from continuing operations includes pre-tax amounts of $5.3 million for legal and professional fees related to the continuing external investigations of the Company’s historical stock option grant practices and $15.8 million of previously disclosed severance costs for former executives.

At June 30, 2007, the Company’s net cash position was $719 million compared with $674 million at March 31, 2007. Cash generated from operating activities was $53 million compared to $63 million in the second quarter of 2006. Free cash flow was $37 million versus $47 million in the comparable quarter of the prior year. Capital expenditures totaled $16 million in the second quarter of 2007.

Sal Iannuzzi, Chairman and Chief Executive Officer of Monster Worldwide, said, “Our second quarter financial results delivered 20% top-line growth and earnings in line with our expectations. We continued to experience strong performance in our International business, reflecting our efforts to expand market share and brand awareness in key markets in Europe and Asia. However, we are not satisfied with our overall performance. We believe that we are capable of significantly more robust growth and are taking decisive action to increase our investment levels to deliver on the growth opportunities in all of our businesses. As an indication of our confidence in the Company’s long-term prospects, we also intend to make active use of the existing share repurchase program authorized by our Board of Directors.”

Six Months Results

Monster Worldwide reported total revenue of $660 million for the six months ended June 30, 2007 compared to $532 million in the comparable period last year, a 24% increase, or 22% before the benefit of foreign exchange rates. Monster Careers revenue grew 26% to $582 million compared with $462 million in the 2006 period. Internet Advertising & Fees reported revenue of $79 million, an increase of 12% over the prior year period. The Company reported income from continuing operations of $69 million, or $0.51 per diluted share. Net income for the first six months of 2007 was $68 million, or $0.51 per diluted share.