Design Hotels AG
Design Hotels AG publishes Annual Results 2014
Design Hotels AG / Key word(s): Final Results Design Hotels AG publishes Annual Results 2014 – Revenue increases by almost 11 percent to Euro 15.2m – EBITDA increases by 20 percent to Euro 1.7m Berlin, March 26, 2015 – Design Hotel AG (m:access, Munich: LBA; ISIN: DE0005141006) publishes results for the financial year 2014. Revenue increased by about 11% and meets the expectations set forth in the beginning of the year. The operational result increased by 20% and, therefore, also complies with the expected result. Key Events: In January 2014, Starwood Hotels & Resorts Worldwide Inc., Stamford, Connecticut, USA informed Design Hotels AG that Starwood owns more than one quarter of the Design Hotels shares and, at the same time, a majority stake in Design Hotels AG directly. Consequently, the parties entered negotiations about the conclusion of a domination agreement. The domination agreement was concluded on June 11, 2014. The annual general meeting of Design Hotels AG resolved to approve of the domination agreement on July 21, 2014. On September 5, 2014, the agreement has been registered with the commercial register of the local court Berlin-Charlottenburg. The domination agreement will provide for a cash compensation pursuant to Section 305 of the German Stock Corporation Act (“AktG”) in the amount of EUR 2.25 per share and a guaranteed dividend pursuant to Section 304 AktG in the amount of EUR 0.10 per share (EUR 0.08 net per share) for each full financial year. Key Financials: Total Revenue increased by almost 11% Euro 15.207m (13.752). Revenue from License Fees for membership with Design Hotels increased by 7% to Euro 3.462m (3.245). This contributes 23% to total revenue compared to 24% in 2013. On December 31, 2014, Design Hotels had 288 (268) member hotels in its portfolio with 22,262 (20,372) rooms in 185 destinations and 55 countries. Booking commissions came in at Euro 7.082m (6.465) in 2014, which means a 10% increase compared to the previous year. Commissions accounted for 46% (47) of the total revenue. Revenue from Marketing and Consulting Services showed the highest increase with 15% this year and reached Euro 4.663m (4.042). It accounts for 31% (29) of total revenue. The Gross Margin is slightly below last year’s level and came in at 68% (69). Gross Revenue was Euro 10.373m (9.486), which is an increase of 9% compared to the previous year. The increase is disproportionally lower compared to the increase of total revenue. This is due to the higher share of the low-margin marketing and consulting services in total revenue. The average number of employees increased from 83 to 85. Therefore, Staff Expenses grew from Euro 5,426m to Euro 5,758m. At the same time, Revenue per Employee went up from Euro 0.166m to Euro 0.179m. The increase of staff was necessary to manage the growing business from the increasing number of member hotels as well as the intensified and more individualized customer service. Selling Expenses came in at Euro 1.433m (1.369). They are directly related to the revenue development and amounted for 10% (10). Other Operating Expenses increased slightly to Euro 1.578m (1.220). The increase is mainly due to the costs for the domination agreement (Euro 259,000). EBITDA increased by about 20% to Euro 1.727m (1.434) in 2014. The EBITDA margin was 11% (10). EBIT reached Euro 1.402m (1.182) in 2014. Net Profit came in at Euro 1.418m (1.198). On December 31, 2014, the Company had cash and cash equivalents in the amount of Euro 5.713m, as compared to Euro 4.407m on December 31, 2013. Shareholders’ equity increased from Euro 5.118m to Euro 6.132m. The equity ratio amounts to 66% (66%). Further Comments: 2014 was another record year for the global tourism industry, with more than 1.1 billion travelers worldwide. The hospitality industry was able to continue its growth path despite many regional crises; both occupancy and average rates have increased over the previous year. Design Hotels could benefit from these developments and even grow disproportionately compared with the average market development. Financial Calendar: 12. June 2015 – Investor Presentation at m:access Conference in Munich 17. June 2015 – 17th Annual Shareholder Meeting in Berlin 3. August 2015 – Publication of Half Year Results 2015 Group Overview
Consolidated Statement of Cash Flow
Consolidated Balance Sheet
Change in Shareholder’s Equity
Contact: About Design Hotels(TM) www.designhotels.com, ISIN: DE0005141006, m:access Munich Stock Exchange (Regulated Unofficial Market) 2015-03-26 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
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