Munich, Germany, 8 November 2013 – At EUR 144 million, TOMORROW FOCUS AG has achieved its highest-ever three-quarter revenue total. This was due in large part to contributions from the Transactions and Advertising segments, which both generated substantial year-on-year increases.
Consolidated revenue for the TOMORROW FOCUS Group in the first nine months of 2013 showed a year-on-year increase of 30.0 percent from EUR 110.8 million to EUR 144.0 million. At EUR 51.8 million, the third-quarter total was up 27.0 percent compared to the figure of EUR 40.8 million for the same period in 2012.
Revenue in the Transactions segment for the three-quarter period grew by 39.3 percent from 83.1 million in 2012 to EUR 115.8 million in 2013.
Compared to the previous year, segment revenue was up 30.3 percent in the third quarter from EUR 31.7 million to EUR 41.3 million.
As required under IFRS rules, the segment figure includes gross holiday revenue generated by Ecotour.com’s virtual tour operator business. This came to around EUR 19.1 million in the first three quarters of 2013 and EUR 10.8 million in the third quarter of the year.
As well as the continued economic weakness of their core French and Dutch markets, three other factors weighed on third-quarter revenue and earnings for the travel companies in this segment. The volume of bookings on the segment's holiday portals was somewhat lower due to a lull in Internet traffic throughout July and August. This was compounded by a resurgence of the crisis in Egypt, which led to rebookings and cancellations, and by a number of bankruptcies among tour operators, which produced defaults totalling around EUR 0.7 million.
At EUR 19.4 million, revenue in the Advertising segment ended the period 5.3 percent higher, compared with a figure of EUR 18.5 million in the first nine months of 2012.
The segment’s third-quarter revenue was up by as much as 21.3 percent on the previous year from EUR 5.7 million to EUR 6.9 million. This rise was mainly attributable to strong performances by the Group’s news portal FOCUS Online and its digital marketing specialist TOMORROW FOCUS Media.
Revenue in the Technologies segment for the three-quarter reporting period was down by 4.0 percent from EUR 9.2 million in 2012 to EUR 8.8 million. This was due to a decline in the volume of offsetting transactions.
By contrast, segment revenue in the third quarter of 2013 showed a year-on-year increase of 5.7 percent from EUR 3.4 million to EUR 3.6 million.
In order to provide a more accurate comparison between the first three quarters of 2013 and the equivalent period in 2012, the figures have been adjusted to remove the following one-off non-operating items:
Under IFRS rules, amortisation and depreciation on the assets identified during purchase price allocation following the corporate takeovers in 2012 came to EUR 1.3 million in the first three quarters of 2013 (first three quarters of 2012: EUR 0.6 million) and to EUR 0.4 million in the third quarter of 2013 (third quarter of 2012: EUR 0.4 million). The compounding of future put/call obligations amounted to EUR 1.9 million in the first three quarters of 2013 (first three quarters of 2012: EUR 1.1 million) and EUR 0.5 million in the third quarter of 2013 (third quarter of 2012: EUR 0.6 million).
However, no adjustment was made for net income of around EUR 1.6 million in the third quarter of 2012 from the disposal of minority shares in AdJug Ltd and the purchase of the remaining shares in tomorrow Travel B.V.
Group earnings before interest, taxes, depreciation and amortisation (Group EBITDA) for the first nine months of 2013 were 4.0 percent higher at EUR 14.6 million compared with the previous year’s figure of EUR 14.0 million.
Group EBITDA for the third quarter of 2013 stood at EUR 4.5 million, down 28.6 percent from the corresponding figure of EUR 6.3 million in 2012.
At EUR 9.7 million, adjusted Group earnings before interest and taxes (Group EBIT) for the first nine months of 2013 were down 4.9 percent on the previous year’s figure of EUR 10.2 million.
Adjusted Group EBIT for the third quarter of the current year was EUR 2.8 million, down 40.4 percent on the figure of EUR 4.7 million achieved in the same period of 2012.
The adjusted consolidated financial result of the TOMORROW FOCUS Group for the first three quarters of 2013 was minus EUR 2.5 million compared with minus EUR 2.4 million in the same period of 2012.
In the third quarter of 2013, the adjusted consolidated financial result was unchanged on the previous year at minus EUR 0.4 million.
Adjusted Group earnings before taxes (Group EBT) for the first three quarters of 2013 stood at EUR 7.2 million, 8.9 percent down on the previous year’s figure of EUR 7.9 million.
At EUR 2.4 million, Group EBT for the third quarter of the current year was 44.2 percent down on the 2012 figure of EUR 4.3 million.
Adjusted Group earnings after taxes for the first three quarters of 2013 were 11.9 percent lower at EUR 5.4 million compared with EUR 6.1 million for the same period of 2012.
The 2013 third-quarter figure stood at EUR 2.0 million, down 44.7 percent from the equivalent 2012 figure of EUR 3.6 million.
Adjusted Group comprehensive income for the first nine months of 2013 was EUR 5.4 million, down 1.8 percent compared with the figure of EUR 5.5 million for the same period of 2012.
The corresponding total for the third quarter of 2013 showed a year-on-year fall of 39.4 percent from EUR 3.3 million in 2012 to EUR 2.0 million.
Adjusted consolidated earnings per share for the first three quarters were 18.2 percent lower at EUR 0.09 in 2013 compared with EUR 0.11 in 2012. The unadjusted figure for the reporting period was EUR 0.04 compared with EUR 0.08 in the first nine months of 2012.
Adjusted consolidated earnings per share for the third quarter of 2013 stood at EUR 0.03, down 50.0 percent on the equivalent figure of EUR 0.06 in 2012. The unadjusted third-quarter figure was also 50.0 percent lower at EUR 0.02 (2012: EUR 0.04).
There follows a breakdown of the earnings situation for the first three quarters of 2013 in each of the business segments.
EBITDA for the Transactions segment ended the three-quarter reporting period 14.1 percent higher at EUR 17.2 million compared with EUR 15.0 million in 2012. At EUR 12.3 million, the figure for EBIT was 0.3 percent down on the previous year’s figure of EUR 12.4 million.
EBITDA for the Advertising segment for the first nine months of 2013 stood at EUR 1.9 million, a year-on-year rise of 21.4 percent compared with EUR 1.6 million in 2012. At EUR 1.2 million, the figure for EBIT was 82.4 percent up on the previous year’s figure of EUR 0.7 million.
At EUR 1.1 million, 2013 three-quarter EBITDA in the Technologies segment was 23.9 percent higher compared with the previous year’s figure of EUR 0.9 million. Segment EBIT rose by 115.6 percent from EUR 0.3 million in 2012 to EUR 0.7 million in 2013.
EBITDA for the non-operating Holding segment stood at minus EUR 5.7 million in the first three quarters of 2013 compared with a year-on-year figure of minus EUR 3.6 million in 2012. EBIT declined from minus EUR 3.7 million in the first three quarters of 2012 to minus EUR 5.8 million in this reporting period.
The earnings figures for the Holding segment in the third quarter of 2012 include non-recurring net income of around EUR 1.6 million from the disposal of minority shares in AdJug Ltd and the purchase of the remaining shares in Tomorrow Travel B.V.
Over recent years, the TOMORROW FOCUS Group has established a number of valuable and sustainable Internet-based business models. Accordingly, the Management Board is very confident that the Group can maintain the same pattern of growth in the fourth quarter of financial 2013. Furthermore, the Group is exploring the potential for acquiring additional Internet-based companies that would complement its existing structure, especially in the areas of travel and advertising.
Important note: From the first quarter of 2014 onwards, all the TOMORROW FOCUS Group’s travel companies will be combined in a new Travel segment.
The German-language version of the interim financial statements of the TOMORROW FOCUS Group for the third quarter of 2013 will be published later today on the website at www.tomorrow-focus.de. Publication of the translation in English will follow soon after.
About TOMORROW FOCUS AG
TOMORROW FOCUS AG (ISIN DE005495329) is based in Munich, Germany, and is one of the leading exchange-listed Internet groups in Germany. The Group has a workforce of around 700, and its business operations are divided into two segments: Transactions and Advertising
The Transactions segment includes HOLIDAYCHECK AG, which operates a number of hotel reviews and travel booking portals by the same name; WEBASSETS B.V., which operates the ZOOVER hotel reviews portals and the METEOVISTA/WEERONLINE weather portals; TOMORROW TRAVEL B.V., which operates the Dutch online travel agent TJINGO; RPC VOYAGES SAS, which operates the French online travel agent ECOTOUR; ELITEMEDIANET GmbH, which operates the premium online dating agency ELITEPARTNER.de; JAMEDA GmbH, which operates the physician ratings portal JAMEDA.de, and ORGANICE.ME GmbH, which operates an app-based document organisation and reminder system.
The Advertising segment includes TOMORROW FOCUS MEDIA GmbH, one of the leading German online marketing providers, which markets numerous well-known portals on behalf of business partners in addition to those operated by the TOMORROW FOCUS Group itself, such as the news and utility journalism site FOCUS Online, the news portal and platform for views and blogs THE HUFFINGTON POST, the finance and stock market information portal FINANZEN100 and the parent portal NETMOMS GmbH.