Interim Release by hotel.de AG as of 30 September 2008
hotel.de posts significant growth in all key earnings figures
- Increased pace of growth compared with previous year
- Opening of outlet in Italy
Nuremberg, 03 November 2008* – hotel.de AG, one of the leading online reservation services for worldwide hotel accommodation, increased its sales in the first nine months of the current year to Euro 24.8 million, up from Euro 18.3 million in the equivalent period in the previous year, thus virtually matching the sales reported for the previous year as a whole. With revenue growth of 35.4%, the company successfully achieved a slight increase in its pace of growth compared with the previous year’s period (33.6%). Moreover, the strong earnings performance reflects initial benefits of scale within the business model.
Course of business in period under report
Notable success abroad affirms the management in the internationalisation strategy it has adopted. Having acquired the www.hotel.info domain at the end of the first quarter of 2008 and since established this among customers as its international brand, the company has now opened an outlet in Italy as part of its growth strategy. From there, hotel.de aims to press ahead with the acquisition of new customers and hotels on location, building on the success of its outlet concept in the UK, France and Spain. In these countries, the company has already achieved high rates of growth in new booking customers, especially in the business customer segment.
Significant sales growth
hotel.de increased its sales by 35.4% in the first nine months of 2008 compared with the same period in the previous year. With growth to Euro 8.9 million, the third quarter was similarly strong (Q3 2007: Euro 6.7 million). In both the quarter under report and the nine month period, the international business once again accounted for a large share of the growth in sales to Euro 24.8 million. The international share of sales for the first nine months amounted to 46.9% (previous year’s period: 41.0%).
hotel.de with jump in earnings
The benefits of scale expected from the business model have become increasingly apparent in the course of 2008, and especially in the third quarter. Here the company posted year-on-year EBIT growth of 74.6% from Euro 0.6 million to Euro 1.0 million, thus achieving a double-digit EBIT margin of 11.2%. Above all, it was personnel expenses, which rose from Euro 3.0 million to Euro 3.4 million, and thus declined significantly as a proportion of sales, which illustrate the emergence of benefits of scale. For the first nine months as a whole, hotel.de generated EBIT growth of 50.3% to Euro 1.7 million. The net surplus for this period rose from Euro 1.0 million to Euro 1.3 million.
The earnings for the third quarter in particular affirm the forecast made by the Management Board, which continues to expect sales growth in a medium double-digit range and substantial year-on-year growth in EBIT and the net surplus. More detailed information will be released in the quarterly report to be published by the company on 27 November 2008.
hotel.de AG with its international brand hotel.info runs a free of charge hotel reservation service for companies and private users on www.hotel.de and www.hotel.info. The company offers 210,000 hotels worldwide to be booked online. Since January 2007, hotel.de has also been offering conferences. Compared to other booking channels, customers benefit from considerable cost savings (on average 40% for business customers). Additionally, all available rates for every single hotel are always displayed, so that the customer can choose the lowest or best-fitting rate. Further, all bookings via hotel.de are sent right into the hotel’s computer - making a reservation fast, safe and reliable. This is enabled by hotel.de/TravelRes’ unique integration of the hotels' central reservation systems (so-called CRS) under one consistent user surface. Well-known companies, such as Procter & Gamble, SAP AG, Texas Instruments Inc. And Ernst & Young AG already use the hotel.de/TravelRes corporate application.
hotel.info is the international brand of hotel.de AG. This brand was established for pushing ahead its expansion into the European countries. In order to acquire customers and hotels abroad, offices in London, Paris and Barcelona have been set up, to be followed by other important countries. The strong customer loyalty and the high ratio of business customers facilitate hotel.info’s entry into the new markets as many foreign-based subsidiaries or parent enterprises of German companies contracted by hotel.de already have been using hotel.info. The aim is to establish hotel.info as the leading online hotel reservation service for business as well as private customers in the foreign markets mentioned and – step by step – in Europe as a whole.