Monster Worldwide Reports Third Quarter and Nine Months 2007 Results

Monster Worldwide, Inc. have reported financial results for the third quarter and nine months ended September 30, 2007.

Third Quarter Results

Total revenue grew 18% to $337 million in the third quarter of 2007 from $286 million in the comparable quarter of 2006. Foreign exchange rate benefits contributed approximately 3% to the year over year revenue growth.

Monster Careers revenue increased 22% to $297 million, compared with $244 million in last year’s third quarter, led by International revenue growth of 57% to $122 million. Included in International revenue is a $7 million benefit from the effect of foreign exchange rates. North American Careers revenue increased 5% to $175 million in the third quarter of 2007, while Internet Advertising and Fees revenue was $40 million compared with $42 million in last year’s comparable quarter.

Monster Worldwide’s deferred revenue balance at September 30, 2007 grew 25% to $435 million over last year’s third quarter balance of $347 million.

Income from continuing operations was $33 million, or $0.25 per diluted share, in the third quarter of 2007, compared to $40 million or $0.31 per diluted share in the 2006 period. Included in income from continuing operations for the three months ended September 30, 2007 is a $0.07 per diluted share impact from costs associated with the ongoing stock option investigation and the Company’s restructuring plan. Pro forma adjustments also include $0.03 per diluted share of costs associated with measures taken by the Company in response to the security breach of the Company’s resume database in August. These pro forma adjustments are described in the Notes Regarding the Use of Non-GAAP Financial Measures and are reconciled to the nearest GAAP measure in the accompanying tables.

At September 30, 2007, the Company’s net cash position was $627 million compared with $719 million at June 30, 2007. During the quarter, the Company utilized the remaining $55 million under its November 2005 buyback program and spent $100 million of the September 2007 authorization, repurchasing a total of 4.5 million shares on the open market. Cash generated from operating activities was $73 million compared to $79 million in the third quarter of 2006. Capital expenditures totaled $11 million in the third quarter of 2007.

The Company also announced that its Board of Directors has increased the Company’s current stock repurchase authorization to $350 million from $250 million. Giving effect to the increased authorization and repurchases to date, the Company currently has $250 million remaining under the program.

Sal Iannuzzi, Chairman and Chief Executive Officer of Monster Worldwide, said, We believe our third quarter results demonstrated the strength of the Monster brand in a difficult domestic market environment. Our ongoing strategy to expand our franchise on a global basis contributed to the significant revenue growth and strong margin expansion we experienced in our International segment. Our ability to provide quality job candidates to our employer customers on a global basis provides a competitive advantage in the marketplace and enhances Monster’s position as the global online recruitment leader.

Mr. Iannuzzi added, Our team is in the process of ramping up investments in product development and innovation, enhanced technology and more aggressive marketing which we believe will improve the customer experience and deliver solid revenue growth and operating margin expansion over time. We are in the early stages of the recently announced restructuring plan and are pleased to report we are on pace with the cost elimination and efficiency initiatives we have outlined. During the third quarter the consolidated non-GAAP operating margin expanded to 21% from 19% in the second quarter. We believe our strong balance sheet will support the Company’s growth opportunities as we work toward building long term sustainable value for our customers, shareholders and dedicated associates across the globe.