Monster Worldwide Reports First Quarter 2006 Results

Monster Worldwide, Inc. today reported financial results for the first quarter ended March 31, 2006.

Total revenue increased 28% to $291.7 million in the first quarter of 2006 from $228.5 million in last year’s first quarter. Monster revenue grew 36% to $257.0 million compared to $189.5 million recorded in the same period of 2005. Organic revenue growth for the Company and Monster was 27% and 34%, respectively, compared to last year’s first quarter.

Within Monster, total Careers revenue, primarily generated from job postings and resume access, grew 36% to $224.6 million compared to $164.8 million in the same period of 2005. Internet Advertising and Fees revenue, primarily comprised of online advertising and consumer services fees, increased to $32.4 million, a 31% increase over the $24.8 million reported in the first quarter of 2005. Monster’s deferred revenue balance at March 31, 2006 was $343.3 million, a 43% increase over last year’s first quarter balance of $240.8 million.

Total revenue for the Advertising & Communications segment decreased to $34.7 million in the first quarter of 2006 from $39.0 million in the 2005 first quarter. Revenue from the Company’s Advertising & Communications business in Europe declined $4.4 million while Advertising & Communications revenue in North America was essentially flat year to year.

Income from continuing operations increased 58% to $37.4 million from $23.7 million in the comparable quarter in 2005, while diluted earnings per share from continuing operations grew 53% to $0.29 per share over the $0.19 recorded in the first quarter of 2005. Net income was $42.3 million compared to $20.6 million in 2005, with diluted earnings per share of $0.32 compared to $0.17 reported in last year’s first quarter.

Cash generated from operating activities in the first quarter of 2006 was $76.3 million compared with $41.4 million for the comparable year ago quarter. Free cash flow increased to $65.4 million, compared to $32.9 million in the first quarter of 2005. At the end of the first quarter of 2006, Monster Worldwide’s net cash position was $362.2 million compared to $273.3 million at December 31, 2005. In the first quarter of 2006, the Company paid $8.5 million to repurchase 180,000 shares of stock in open market transactions and entered into a structured stock repurchase transaction for $22.8 million. Depending upon the market price of the Company’s stock on the settlement date, the Company will either repurchase a predetermined number of shares or receive its $22.8 million and a premium.

2006 is off to a great start. Our exceptional operating performance and strong financial results were fueled by our aggressive investments in the Monster franchise on a global basis, said Andrew J. McKelvey, Chairman and Chief Executive Officer, of Monster Worldwide. Monster drove strong revenue growth in North America and overseas as field sales, telesales and eCommerce sales channels all contributed to our success. It is clear that our ongoing investments in the Monster brand, expansion of our sales force, and improvements to our products and services have positioned us to benefit as demand for online recruitment services grows and labor market conditions improve. Our Monster Careers-International business reached a new level as revenue climbed by 57% despite uneven market conditions in certain major European countries. Meanwhile, we remain excited about the long-term opportunities in the emerging Asian online recruitment markets, as we increased our strategic investment in ChinaHR during the quarter.

Mr. McKelvey added, Our Internet Advertising and Fees business is a growing highlight of our success and strategy, as it provides another attractive way for Monster to monetize the enormous audience that regularly visits our network of Web sites. We believe the growth of this business adds balance to our model and represents a significant long-term opportunity. For the Company as a whole, earnings growth once again outpaced our strong revenue growth in the first quarter, and we expect to continue to invest aggressively in the areas that drive Monster’s growth and leadership, while managing operations efficiently and realizing the benefits of our growing operating scale.

Recent Developments
Earlier this year, Monster Worldwide increased its investment in ChinaHR.com Holdings Ltd, spending $19.9 million to purchase additional shares from existing shareholders and increasing the Company’s minority ownership position to 44.4%. Monster Worldwide initially purchased 40% of ChinaHR, one of China’s leading and most widely recognized online recruitment companies, in February 2005. The investment is consistent with the Company’s global strategy and the high priority placed upon the fast growing and expanding Asia Pacific recruitment market.

During the quarter, Monster announced two strategic alliances designed to create greater customer value through highly integrated product and service offerings. Monster and Development Dimensions International (DDI) developed a unique suite of candidate assessment products that will be seamlessly integrated with Monster’s job postings. These products, marketed as the Monster Performance Assessment System, are designed to expedite and enhance the applicant screening process by quickly identifying candidates with the greatest potential for success in a given position. Monster also announced a strategic relationship with Deploy Solutions, Inc. to serve the skilled and hourly market by helping businesses with large hourly workforces to streamline the hiring process to more quickly identify and hire quality job applicants.

In March, Monster Worldwide sold its TMP Worldwide Advertising & Communications businesses in Australia/New Zealand and Singapore in two separate transactions. The sales of these businesses were the result of the Company’s ongoing assessment of its operations to support the growth of the Monster franchise in local and international markets. The impact of the transactions and the historical operating results of these businesses have been reclassified to discontinued operations for all periods presented.

Monster Worldwide has introduced a new reporting format for the Monster businesses. Beginning with the first quarter of 2006, the Company will report its Monster business, collectively referred to as Monster, in three new operating segments: Monster Careers-North America; Monster Careers-International; and Internet Advertising and Fees. See the financial supplement posted on the Investor Relations section of the Corporate website for additional information.

Business Outlook
The following forward-looking statements reflect Monster Worldwide’s expectations as of April 26, 2006. These expectations do not include the effect of any future acquisitions or dispositions, or factors outside of our control, which may have an impact on future financial results and are subject to the Special Note regarding forward-looking statements elsewhere in this release.

Supplemental Financial Information
The Company has made available certain supplemental financial information, in a separate document that can be accessed directly at http://www.monsterworldwide.com/Q106.pdf or through the Company’s Investor Relations website at http://ir.monsterworldwide.com.

Conference Call Information
First quarter 2006 results will be discussed on Monster Worldwide’s quarterly conference call taking place on April 26, 2006 at 10:00 AM EDT. To join the conference call, please dial in on 888-551-5973 at 9:50 AM EDT with the password Monster. For those outside the United States, please call in on 706-643-3467 using the same password. The call will begin promptly at 10:00 AM EDT. Individuals can also access Monster Worldwide’s quarterly conference call online through the Investor Relations section of the Company’s website at www.monsterworldwide.com. For a replay of the call, please dial 800-642-1687 or for outside the US dial (706) 645-9291 and use reference ID # 7639953. This number is valid until midnight on May 3, 2006.