Best quarter in K2 history.

For K2 Internet S.A., a company quoted on the stock exchange and operating in the field of e-marketing, the 4th quarter of 2008 brought the best financial performance ever. Its consolidated sales reached 14,788,000 PLN, which was a growth by 72% compared to the same period of 2007. The profit from sales increased to 3,250,000 PLN (against 702,000 in Q4 2007), and the net profit – to 2,534,000 (against 490,000 in Q4 2007).

Such good results were achieved thanks to the completion of numerous projects and stages of the long-term works for the company’s long-time accounts such as
Coca–Cola, Volvo, NOKIA, Getin Bank or Sanofi Aventis. 2008 was a very successful year as for the effectiveness of new business acquisition. Just to mention its fourth quarter, the company managed to accomplish a number of significant and valuable orders from such Clients as KFC, Bank Ochrony Środowiska, Open Finance and Raiffeisen Bank. What’s more, all the business units operating within the group have achieved positive financial results by reaching or going beyond their budgets. Among them, the fastest growth was accomplished by our Internet media house, ACR S.A., and the Outsourcing Department, which has recruited many important Clients from outside the K2 Group such as, for example, Travelplanet.

The excellent performance of the last quarter enabled the Group to finish the year with the sales value totalling at 40,450,000 PLN (annual data before the expert’s audit), which was a YOY increase by 56%. EBITDA reached the level of nearly 5 ml PLN (growth by 47% against 2007), and the net profit amounted to 2,327,000 PLN (increase by 41% compared to 12-month period ended on 31 December 2007).

 “We are more than happy with the performance achieved last year. The balanced growths of all our business units, as well as the accumulation of knowledge and experience translating into concrete financial results are very satisfying. We are relatively optimistic about the current year perspectives, as the expected slump in the economy may obviously have a negative impact on our operations. Nonetheless, it ensues from the initial discussions with our Clients that the Internet, as an advertising communication medium, may be relatively affected the least by the marketing budgets’ cuts. Last year was marked by an increased pace of the investment thanks to funds achieved from the public share offer, and a quick growth in employment. However, the change of the economic conditions makes us adopt a more conservative investment policy this year. By the same token, we are planning to stabilise the employment. The liquid assets we have at our disposal (the balance of cash, current receivables and liabilities totals at nearly 10 ml PLN) give us a comfort of calm reactions to the potential changes of the market conditions”, commented Janusz Żebrowski, Chairman of the Board of K2 Internet S.A.