Corporate News : HolidayCheck Group AG reports substantial second-quarter increase in revenue and announces minor upgrade to full-year revenue forecast

Munich, Germany, 8 August 2017 - Following on from a successful first quarter of the year 2017, HolidayCheck Group AG can look back on a very pleasing second quarter in which revenue grew at a slightly faster rate still.

Once again, there was a clear upturn in the Central European package holiday market over the second quarter. Based on the company's own assessment, this growth will have particularly benefited companies in the online package holiday segment.

At EUR 61.2 million, revenue of Holiday Check Group AG for the first half-year was up by 11.2 percent compared with EUR 55.0 million in the same period of 2016. The second-quarter figure was 11.5 percent higher at EUR 27.7 million (second quarter 2016: EUR 24.9 million).

The main driver of this revenue growth was HolidayCheck AG, which achieved year-on-year increases of 14 percent in the first half of 2017 and as much as 16 percent in the second quarter. As anticipated, the revenue generated by WebAssets B.V. from its brands Zoover and WeerOnline/MeteoVista in the first half of 2017 was largely unchanged compared with the previous year.

At EUR 2.8 million in the first half of 2017, operating EBITDA (operating earnings before interest, tax, depreciation and amortisation) showed a substantial increase (>100 percent) on the figure of EUR 0.2 million for the same period in 2016. The second-quarter figure for the current financial year stood at minus EUR 1.6 million compared with minus EUR 0.2 million in 2016.

At EUR 1.5 million, EBITDA (earnings before interest, tax, depreciation and amortisation) for the first half of 2017 was up 49.2 percent year on year (first half 2016: EUR 1.0 million). Second-quarter EBITDA declined from EUR 0.3 million in 2016 to minus EUR 2.7 million in the current financial year, mainly as a result of planned increases in marketing and personnel expenses and other exceptional factors shown under personnel expenses.

At EUR 14.6 million, marketing expenses in the second quarter were 13.7 percent higher compared with the figure of EUR 12.9 million in the same period of 2016. The main factor here was the production and launch of a new, long-term advertising campaign under the slogan Book your thing. The campaign went live in mid-June and generated marketing expenses of EUR 1.8 million in the second quarter.

In addition, at EUR 9.9 million, second-quarter personnel expenses were up 37.5 percent on the figure of EUR 7.2 million for the same quarter of 2016.

This was partly due to a planned increase in the workforce, especially in the area of IT development and in our service centre. Another important factor affecting the second quarter of 2017 was the revaluation of long-term incentive plans following a significant increase in the company's share price. Together with ongoing additions to long-term incentive plans and various other factors, this pushed up personnel expenses in the second quarter of 2017 by EUR 1.2 million. After adjusting for this revaluation, the planned increase in the workforce pushed up personnel expenses by 20.8 percent.

EBIT (earnings before interest and tax) for the first half of 2017 stood at minus EUR 1.5 million compared with minus EUR 1.8 million in the same period of 2016. Second-quarter EBIT was minus EUR 4.3 million (second quarter 2016: minus EUR 1.1 million).

EBT (earnings before taxes) stood at minus EUR 1.6 million in the first half of 2017 (first half 2016: minus EUR 1.7 million). EBT in the second quarter of 2017 was minus EUR 4.3 million (second quarter 2016: minus EUR 1.0 million).

Consolidated net profit/(loss) from continuing operations was minus EUR 2.1 million in the first half of 2017 (first half 2016: minus EUR 1.7 million). The corresponding figure for the second quarter was minus EUR 4.0 million (second quarter 2016: minus EUR 1.0. million).

Consolidated net profit/(loss) from discontinued operations was EUR 0.3 million in the first half of 2017 compared with EUR 0.1 million in the same period of 2016. The corresponding figure for the second quarter was EUR 0.3 million compared with minus EUR 0.3 million in the same quarter of 2016.

Consolidated profit/(loss) was minus EUR 1.8 million in the first half of 2017 compared with minus EUR 1.6 million in the same period of 2016. Second-quarter consolidated profit/(loss) stood at minus EUR 3.7 million in 2017 compared with minus EUR 1.3 million in the previous year.

Basic and diluted earnings per share from continuing operations stood at minus EUR 0.04 in the first half of 2017 compared with minus EUR 0.03 in the same period of 2016. The second-quarter figure for 2017 was minus EUR 0.07 compared with minus EUR 0.02 in the same quarter of 2016.

Basic and diluted earnings per share from all operations were minus EUR 0.03 in the first half of 2017 compared with minus EUR 0.03 in the same period of 2016. The second-quarter figure for 2017 was minus EUR 0.06 compared with minus EUR 0.03 in the second quarter of 2016.

In light of the pleasing results achieved for both revenue and earnings in the first half of 2017, the Management Board has upgraded its forecast for revenue growth at HolidayCheck Group AG in financial 2017 to between 7 and 11 percent. The original forecast was for revenue growth between 5 and 10 percent.

In view of its plans to scale up investment in personnel and marketing, the Management Board still expects operating EBITDA in financial 2017 to lie between minus EUR 5 million and EUR 0 million.

About HolidayCheck Group AG:

HolidayCheck Group AG (ISIN DE005495329), Munich, Germany, is one of Europe's leading digital firms for holidaymakers. With a total workforce of around 400, HolidayCheck Group AG comprises HolidayCheck AG (which operates hotel review and travel booking portals by the same name); Driveboo AG (which operates the car rental portal MietwagenCheck); and WebAssets B.V. (which operates the Zoover hotel review portals and the MeteoVista/WeerOnline weather portals). HolidayCheck Group's vision is to become the world's most holidaymaker-friendly company in the world.