TOMORROW FOCUS AG reports 27 percent first-quarter growth/ EBITDA up 15 percent

In the wake of strong growth in 2012, TOMORROW FOCUS AG moved seamlessly into 2013 with the highest quarterly revenue figures in the company’s history.

At EUR 46.2 million, the TOMORROW FOCUS Group’s consolidated revenue for the first quarter of 2013 was up 26.9 percent on the corresponding figure of EUR 36.4 million recorded in the first quarter of 2012.

The increase was largely driven by positive results in the Group’s Transactions segment, with first-quarter revenue up EUR 10.7 million on the previous year at EUR 38.3 million. Both HolidayCheck AG and EliteMedianet GmbH contributed to an impressive segment performance. Between them, RPC Voyages SAS, Tomorrow Travel B.V. und Webassets B.V., all of which were newly consolidated within the Transactions segment in 2012, generated revenue of EUR 8.3 million towards the Group and segment totals.

Revenue in the Advertising segment fell slightly by EUR 0.4 million to EUR 5.7 million due to the loss of marketing clients. Some of these will not be replaced until later in the year by new partners such as Apple iAd and Huffington Post.

In the Technologies segment, revenue was EUR 0.4 million lower at EUR 2.2 million, although the first quarter brought an improvement in the segment’s result from operating activities.

The first-quarter earnings figures were reduced by various non-recurring items unrelated to the Group’s operating activities.

In line with IFRS rules, the company’s acquisitions in 2012 led to amortisation and depreciation of EUR 0.4 million in the first quarter of 2013 on the assets identified during purchase price allocation and to compounding of EUR 0.5 million in respect of its future put/call liabilities.

Group earnings before interest, taxes, depreciation and amortisation (Group EBITDA) for the first quarter of 2013 were 14.9 percent higher at EUR 4.8 million compared to the previous year’s figure of EUR 4.2 million.

At EUR 2.8 million, Group earnings before interest and taxes (Group EBIT) for the first quarter of 2013 were slightly down by 2.7 percent from the previous year’s figure of EUR 2.9 million. This was due to the amortisation and depreciation of assets identified during purchase price allocation (see above).

Group earnings before taxes (Group EBT) for the first quarter of 2013 stood at EUR 0.4 million, 67.2 percent down on the previous year’s figure of EUR 1.1 million.

Group earnings after taxes for the first quarter were minus EUR 0.5 million compared to EUR 0.4 million generated in the first quarter of 2012.

Consolidated earnings per share for the first quarter of 2013 were minus EUR 0.01 compared to EUR 0.01 in the same quarter of 2012. After adjusting for the non-recurring items mentioned above, the figure for consolidated earnings per share stood at EUR 0.01 and was thus unchanged on the previous year.

Overall, the Group’s results lie within the Management Board’s expectations.

Despite prevailing caution over the economic outlook for 2013, the Management Board is confident that TOMORROW FOCUS AG can maintain a pattern of growth over the rest of the year with the help of its new brands, Ecotour, Tjingo, Zoover, NetMoms and Huffington Post. After adjusting for non-recurring items such as income from disposals, the company aims to deliver a double-digit increase in both consolidated revenue and EBITDA.

The German version of the first-quarter report of the TOMORROW FOCUS Group for the financial year 2013 will be published on the website at on 8 May. The English translation of the report will follow soon after.