Design Hotels AG publishes preliminary annual results
(Thomson Reuters ONE) -
Design Hotels AG / Design Hotels AG publishes preliminary annual results processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
· Revenues decrease by 8% to ?8.46 million
· EBITDA of ?0.47 million thanks to strong fourth quarter
Berlin March 15, 2010 - Design Hotels AG (Regulated Market, Munich: LBA; ISIN:
DE0005141006), an integrated provider of marketing and positioning services for
individually managed hotels and small hotel groups in the New Luxury Segment,
today reports the preliminary results for the fourth quarter and full financial
year 2009 according to IFRS. Revenues for the full year went down 8% compared to
2008. The operational result (EBITDA) fell from ?1.07 million to ?0.47 million.
The results are therefore in line with the guidance provided in the publication
of the half year results.
Financial Highlights for the Design Hotels Group:
Revenues for the financial year 2009 decreased by approximately 8% to ?8.46
(last year: ?9.14) million. In the fourth quarter, revenues dropped by around
3% to ?2.77 (?2.86) million. Main cause for the decline in revenues was the
difficult economic climate. Following five years of growth for the global
tourism industry, the entire sector was faced with falling revenues. In addition
to the general fall in travel, hotels were hit with a reduction of the average
length of stay and eroding room prices. As a result, booking commissions for
Design Hotels AG were hit hardest, down 19%. The contribution to overall
revenues from commissions fell from 47% to 41%. Throughout the year a rising
trend in bookings was witnessed. Revenues from Marketing Products/Consulting
decreased slightly by 2%. However, the turnover from membership fees rose by
around 9%, resulting from an increase in membership and a steps wise migration
to new membership agreements.
The Gross Margin for 2009 came in at 70%, slightly below the 72% for 2008,
mainly due to the falling contribution to revenues from higher margin booking
commissions. For the fourth quarter, the Gross Margin went down to 56% (61%),
which was mainly caused by the relatively high contribution from projects in
this period.
Based on the change in long-term direction towards becoming more focused on
service and consulting activities, the Company invested in staff, despite the
anticipated fall in revenues due to the adverse economic conditions. Total
Operational costs therefore fell only marginally to ?5.51 (?5.58) million.
The EBITDA for 2009 came in at around ?0.47 (?1.07) million, a fall of
approximately 56%, compared to the same period last year. For the fourth
quarter, the EBITDA increased to 39%, or ?353,000 (?254,000). The EBITDA margin
for the full year was 6% (12%) and for the fourth quarter 13% (9%).
The EBIT for 2009 was around ?300,000 (?0.91 million), a fall by 67%. For the
fourth quarter, the EBIT increased by 39% to ?317,000 (?228,000).
Based on the 2009 results and the changed economic environment, a balance sheet
adjustment for deferred taxes to the value of ?1.32 million was made in relation
to carried forward losses. The group result for the financial year 2009
therefore shows a loss of ?0.96 million. For the previous year, a net profit of
?1.05 million had been achieved.
As of the 31(st) December 2009, the Company had cash and cash equivalents of
?2.53 million, as compared to ?2.78 million as of 31(st) December 2008.
Shareholders' Equity dropped from ?5.64 million to ?4.80 million.
At the end of the financial year, the Company had 196 member hotels (last year:
176) with 14,399 rooms (12,825) with 116 destinations in 42 countries. Whereas
2008 saw 469 membership applications, this number for 2009 was 340.
For the year on average, the Company had 63 employees (last year: 57). Despite
the weakness in demand, Management decided to stick to its plan to increase the
number of employees and accept the resulting increase in staffing costs. As a
result of structural changes, labour costs increased by 7% only.
Additional Notes:
CEO Claus Sendlinger commented, "Following five years of very dynamic growth,
the global economic crisis of 2009 had a big impact on the tourism industry. We
were prepared for a reversal of the long growth trend, but the extent of the
crisis across all sectors surprised us, as well as the other market
participants. Due to our fast reaction to the dramatically changing market
conditions, we were able to limit the fall in revenues by the end of the year to
a single digit percentage, as well as achieve a positive operational result.
In 2009, increasing the room occupancy rates were the primary concern of our
hotel costumers, which is why we focused our efforts on services to support cost
efficient operations. Our success can be seen through three key numbers:
although the value of room bookings sold through our channels fell by 12% from
?65 million to ?57 million, the number of bookings fell by only 4% and the
number of nights booked fell by only 3%. The fall in our booking revenues is
therefore mainly related to price erosion in the market.
The crisis was therefore a chance for us to prove the strength of the Design
Hotels brand. We were able to demonstrate the added value of being connected
with a strong marketing and distribution organisation which is one of the
reasons why 36 top hotels decided to invest in a membership with Design Hotels.
Since the middle of the past year, we noticed the beginnings of a recovery. Our
revenue development in the first two months of this year further supports the
signs of an improving economic situation. We therefore expect to return to a
growth in 2010. For 2010 we anticipate our revenues to grow with a high single
digit percentage, with our operating result coming in slightly higher than for
2009."
Please download the complete PR including tables via the the link at the end of
this message.
The complete and audited annual statements will be published in the second half
of April.
Contact:
Design Hotels AG
Claus Sendlinger (CEO)
Stralauer Allee 2c
10245 Berlin
P +49 (0)30 88 494 00 01
F +49 (0)30 259 330-17
ir(at)designhotels.com
Schwarz Financial Communication
Frank Schwarz
P +49 (0)611 17453 9811
F +49 (0)611 17453 9829
schwarz(at)schwarzfinancial.com
Design Hotels AG (formerly: lebensart global networks AG) is an integrated
provider of communication and positioning services and acts as a consultant for
individually managed hotels and small hotel groups. The service range of design
hotels begins with the concept for a hotel. Clients of design hotels AG can
choose from a modular service portfolio. With the brand Design Hotels(TM) the
company currently represents and markets a unique collection of over 180
individual hotels in more than 40 countries. Through its marketing and
communication activities Design Hotels AG forms the connection between the
member hotel and a global clientele looking for self-determination and
individuality.
www.designhotels.com
Stock Exchange (Regulated Market)
[HUG#1393742]
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Design Hotels AG
Stralauer Allee 2c Berlin Germany
WKN: 514100;ISIN: DE0005141006;
Listed: Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg,
Freiverkehr in Börse Berlin,
Open Market (Freiverkehr) in Frankfurter Wertpapierbörse,
Regulierter Markt in Bayerische Börse München;
Press Release as PDF: http://hugin.info/136390/R/1393742/350827.pdf
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Datum: 15.03.2010 - 03:00 Uhr
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