Design Hotels AG
Design Hotels AG publishes Annual Results 2012
Design Hotels AG / Key word(s): Final Results Design Hotels AG publishes Annual Results 2012 – Revenue increases by 22% to Euro 12.629MM – EBITDA goes down to Euro 0.308MM due to extraordinary expense Berlin, March 11, 2013 – Design Hotels AG (m:access, Munich: LBA; ISIN: DE0005141006) publishes results for the financial year 2012. Revenue increases by more than 20 % and exceeds the expectations presented in the beginning of the year. The operational result is behind last year's result due to an unavoidable write-off of receivables. Key Financials: Revenue increased by 22% to Euro 12.629MM (10.363) in the financial year 2012. The international tourism industry was able to continue its growth path in 2012 and achieved record numbers despite the unstable economic situation worldwide. International arrivals as well as travel spending increased compared to the previous year. In the hotel sector this development had a particularly positive impact on average occupancy and average rates. Design Hotels was able to benefit from this trend and achieved a disproportional increase compared to the overall market development. Revenue from License Fees for membership with Design Hotels increased by 8% compared to the previous year to Euro 3.118MM (2.889). This contributes 25% to total revenue compared to 28% in 2011. On December 31, 2012 Design Hotels had 249 (211) member hotels in its portfolio with 18,949 (17,164) rooms in 153 destinations and 47 countries. Revenue from Marketing and Consulting Services grew strongest with an increase of 36% and reached Euro 3.836MM (2,816). It accounts for 30% (27%) of total revenue. Booking commissions came in at Euro 5.675MM (4.658) in 2012, which means a 22% increase compared to the previous year. Commissions accounted for 45% of the total revenue. This number has not changed from 2011. The value of the total number of bookings through Design Hotels' channels grew by 35% this year. This growth rate is, thus, significantly higher than the growth rate for booking commissions. The Gross Margin came it at 65% (69%) and is slightly below last year's level. Gross Revenue was Euro 8.161MM (7.160), which is an increase of 14% 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 75 to 78. This increase was necessary due to the higher volume of business, especially from the expansion of the product and service portfolio for the member hotels in order to enhance customer service, and therefore, to increase revenue from the individual hotels. Staff Expenses increased from Euro 4.516MM to Euro 4.948MM. Revenue per Employee went up from Euro 0.139MM to Euro 0.161MM. Selling Expenses came in at Euro 1.088MM (1.037). They are directly related to the revenue development and amounted to 9% (10%). Other Operating Expenses increased to Euro 0.817MM (0.145). This is due to value adjustments on receivables and bad debt losses in the amount of Euro 0.79MM (0.09). EBITDA decreased by about 30% to Euro 0.308MM (0.442). The main reason for the decrease is the unpredicted bad debt losses. The EBITDA margin was 2% (4%). EBIT reached Euro 0.01MM (0.14) in 2012, a decrease of 93% compared to the previous year. Preliminary Net Profit came in at Euro 0.049MM (0.174). The change in shareholder and the increase of stocks to over 50% in 2012 resulted in the non-deductibility of the unused tax losses. The deferred tax assets on loss carried forward had to be expensed. Subsequently, the company recorded a consolidated net loss of Euro 1.252MM (consolidated net profit 0.653). On December 31, 2012, the Company had cash and cash equivalents in the amount of Euro 4.002MM, as compared to Euro 3.540MM on December 31, 2011. Shareholders' equity decreased from Euro 5.552MM to Euro 4.293MM. The equity ratio amounts to 59% (67%). Further comments: CEO Claus Sendlinger comments: 'Overall, we are satisfied with the development of the company and the year-end results. We were able to increase revenue in the three main business areas. This confirms the company's strategic alignment and our set goals. Our decision to expand the product and service offering to the member hotels, and along with it the increase in staff, paid off. Only the value adjustments on receivables was very unfortunate after such a successful year as we were not able to achieve our planned operational results. We are very optimistic about the future and expect a revenue increase in the two-digit range in 2013. We also anticipate a significant improvement of the operational results this year.'
An overview of key figures for FY 2012 is available for download at http://corporate.designhotels.com/investor_relations
Financial Calendar: April 25, 2013 – Investor Presentation at m:access Conference in Munich June 5, 2013 – 14th Annual Shareholder Meeting in Berlin August 1, 2013 – Publication of Half Year Results 2013
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About Design Hotels www.designhotels.com, ISIN : DE0005141006, m:access Munich Stock Exchange (Regulated Unofficial Market) End of Corporate News 11.03.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s 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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