DGAP-News: HolidayCheck Group AG / Key word(s): Quarterly / Interim Statement
HolidayCheck Group AG reports modest improvement in revenue over third quarter as cost-saving measures start taking effect
Over the past months, driven by the need to protect its liquidity position, HolidayCheck Group AG responded by introducing a series of comprehensive cost-saving measures in every area. These are gradually taking effect. Back in August 2020, we announced plans to reduce the workforce by around 90. These cuts have now been implemented. The sale of our Dutch subsidiaries generated around EUR 14.9 million. As a result of this move, the HolidayCheck Group no longer has a presence in the Netherlands. The consolidated net profit/(loss) of these discontinued operations is shown explicitly in the financial statements. As such, the key indicators given below relate only to the Group's continuing operations.
Due to the varied impacts of COVID-19 on our business, the company decided to adjust its financial results for the first nine months of 2020 to exclude significant out-of-period items. An adjustment has been made for deferred revenues from 2019 and directly related costs in respect of holidays planned for the current year that were either cancelled or are likely to be cancelled. In the first quarter and first half of 2020, adjustments were made for depreciation and amortisation on goodwill, brands, software developed in-house and the corresponding deferred taxes. These now apply entirely to the Group's discontinued operations. Accordingly, no corresponding adjustment was made to the consolidated net profit/(loss) of these discontinued operations.
In this market environment, the HolidayCheck Group's revenue for the first nine months of 2020 was EUR 11.2 million compared with EUR 103.7 million over the same period in 2019. Adjusted revenue for the first nine months of 2020 was EUR 26.4 million.
Gross margin for the first nine months of 2020 was EUR 6.0 million compared with EUR 103.2 million over the same period in 2019. Adjusted gross margin for the first nine months of 2020 was EUR 21.3 million.
Gross margin is defined as sales revenue less cost of goods sold (COGS), i.e. advance purchases of holiday services (e.g. expenditure for hotels, flights and transfer services) by the Group's in-house tour operator HC Touristik.
Marketing expenses in the first nine months of 2020 came to EUR 8.8 million, down from EUR 53.7 million in the first nine months of the previous year. The Group's adjusted marketing expenses for the first nine months of 2020 were EUR 13.7 million.
Personnel expenditure for the first nine months of 2020 declined from EUR 26.5 million in 2019 to EUR 22.5 million in the current year.
At EUR 17.8 million, other expenses in the first nine months of the current year were down from EUR 18.0 million in 2019.
EBITDA (earnings before interest, tax, depreciation and amortisation) for the 2020 nine-month period stood at minus EUR 33.0 million compared with the figure of EUR 4.4 million for the same period of 2019. Adjusted EBITDA for the first nine months of 2020 was minus EUR 23.1 million.
Operating EBITDA (operating earnings before interest, tax, depreciation and amortisation) for the first nine months of 2020 was minus EUR 31.0 million compared with the figure of EUR 4.8 million in the same period of 2019. Adjusted operating EBITDA for the first three quarters of 2020 was minus EUR 21.1 million.
EBIT (earnings before interest and tax) for the first nine months of 2020 was minus EUR 38.8 million compared with minus EUR 1.8 million over the same period in 2019. Adjusted EBIT for the first nine months of 2020 was minus EUR 28.9 million.
EBT (earnings before taxes) for the first nine months of 2020 stood at minus EUR 39.0 million in 2020 compared with minus EUR 2.0 million over the same period of 2019. Adjusted EBT for the first nine months of 2020 was minus EUR 29.1 million.
Consolidated net profit/(loss) from continuing operations was minus EUR 34.7 million over the first nine months of 2020. The corresponding figure in 2019 was minus EUR 2.8 million. Adjusted consolidated net profit/(loss) for the first nine months of 2020 was minus EUR 24.8 million.
Consolidated net profit/(loss) from discontinued operations was minus EUR 31.6 million over the first nine months of 2020. The corresponding figure in 2019 was minus EUR 0.6 million.
Basic and diluted earnings per share from continuing operations stood at minus EUR 0.60 in the first nine months of 2020 as against minus EUR 0.05 in the same period of 2019. Adjusted basic and diluted earnings per share from continuing operations were minus EUR 0.43 for the first nine months of 2020.
As at 30 September 2020, the company had cash and cash equivalents of EUR 44.6 million compared with EUR 27.5 million as at 31 December 2019. The increase was mainly due to a draw-down of around EUR 14.8 million under existing credit lines in the first quarter of this year and COVID+ credits totalling EUR 13.3 million in Switzerland in the third quarter of 2020. The Group's cash position was further boosted by income of EUR 14.4 million from the sale of its Dutch operations. HolidayCheck Group AG is also exploring additional, longer-term financing options.
In preparation for this scenario, HolidayCheck Group AG is implementing a wide range of measures to permanently reduce its costs and therefore ease the pressure on its liquidity.
Given the current uncertainty affecting the travel market, we are not in a position to issue an updated forecast for revenue and earnings. In our March 2020 guidance, we anticipated a substantial year-on-year downturn in gross margin (sales revenue less COGS/advance purchases of holiday services) after adjusting for acquisitions and disposals, with operating EBITDA in clearly negative territory. Due to ongoing absence of reliable facts and information, it is not currently possible to offer a reliable estimate of the scale of this anticipated downturn.
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09.11.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
HolidayCheck Group AG
Neumarkter Str. 61
+49 89 357680 901
+49 89 357680 999
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
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