HolidayCheck Group AG releases second quarter and first half 2021 figures

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DGAP-News: HolidayCheck Group AG / Keyword (s): Half-year results
09.08.2021 / 07:30
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COMPANY NEWS

HolidayCheck Group AG releases second quarter and first half 2021 figures – second quarter results show welcome improvement

Munich, Germany, August 9, 2021 – Thanks to partly rewarding business development in the second quarter, HolidayCheck Group AG’s first half 2021 results were satisfactory in the context of the Covid-19 pandemic. Despite our proactive policy of reducing the Group’s marketing activities to the strict minimum, our flagship brands HolidayCheck, HolidayCheck Reisen, MietwagenCheck and DriveBoo have benefited from strong demand for package holidays, hotel reservations and rental cars, in particular in June.

In fact, the Group as a whole even managed to generate a net profit in June.

Although bookings subsequently plummeted and cancellation / rebooking rates increased in response to the gradual tightening of travel rules from late June and heightened awareness of the delta variant in July, the demand now seems to be stabilizing.

The total value of holiday bookings with departure dates in the second half of 2021 now stands at over 100 million euros. Once these holidays have actually started, the reservation commission can be recognized in turnover. As a precautionary measure, this income has not been included in the figures for the first half of 2021. Based on past experience, vacation cancellations could further reduce our commission income by a significant margin. In contrast, in the first half of 2020, anticipated commission income for vacations due to start after each reporting period has been recognized in the accounts on the basis of careful estimates.

Excluding these commissions, the first half of HolidayCheck Group AG income in 2021 was 8.9 million euros compared to minus 1.8 million euros for the same period in 2020.

Revenues for the second quarter of 2021 reached 7.3 million euros, compared to 4.9 million euros in the same quarter of 2020.

Cost of Goods Sold (COGS), that is, the advance purchases of holiday services (e.g. spending on hotels, flights and transfer services) by the internal tour operator of the HC Touristik Group, for the first half of the year fell from minus 1 , 6 million euros in 2020 to less than 1.3 million euros in 2021.

In contrast, cost of goods sold in the second quarter of 2021 fell to minus € 1.0 million from minus € 0.1 million in the same quarter of 2020.

Gross margin for the first half of 2021 amounted to 7.7 million euros compared to minus 3.4 million euros in the first half of 2020. Gross margin is defined as revenue less cost of goods sold (COGS) .

The gross margin for the second quarter was 6.2 million euros, compared to 4.9 million euros for the same period in 2020.

In 2020, the company implemented a series of comprehensive cost reduction measures in all areas. This enabled HolidayCheck Group AG to achieve a sustained year-over-year improvement in its quarterly and half-year profits and thus protect its liquidity position:

Marketing costs in the first half of 2021 fell to minus 0.6 million euros compared to minus 8.1 million euros in the first half of 2020.

The main factors here were the falling voucher costs and the deliberate decision to halt almost all marketing activities from mid-May 2020.

In the second quarter of 2021, marketing spend was unchanged year over year at minus € 0.5 million.

Personal expenses for the first half of the year fell from minus € 16.0 million in 2020 to minus € 10.7 million in 2021.

The main factor here is the downsizing in the third quarter of 2020 in response to the Covid-19 pandemic.

At minus 5.6 million euros, personnel costs for the second quarter of 2021 were down from minus 6.9 million euros the previous year.

At minus 5.2 million euros, other expenses in the first half of the current year were down from minus 9.0 million euros in 2020.

The other expense figure for the second quarter of 2021 was minus 2.6 million euros, compared to minus 3.3 million euros in 2020.

This reduction was mainly achieved through Group-wide cost saving measures and lower operating costs for service centers.

First semester EBITDA (earnings before interest, taxes, depreciation and amortization) showed year-over-year improvement, from minus € 32.3 million in 2020 to minus € 7.8 million.

Second quarter EBITDA was minus € 2.3 million in 2021, compared to minus € 3.3 million in 2020.

Operating EBITDA (operating income before interest, taxes, depreciation and amortization) fell from minus € 31.6 million in the first half of 2020 to minus € 8.2 million during the period under review.

In the second quarter, operating EBITDA was minus € 2.3 million compared to minus € 2.4 million in 2020.

EBIT (earnings before interest and taxes) in the first half of 2021 was minus € 10.9 million, an improvement over the figure of minus € 36.2 million for the same period in 2020.

Second-quarter EBIT was minus € 3.8 million in 2021, compared to minus € 5.3 million in 2020.

EBT (earnings before interest and taxes) in the first half of 2021 improved to minus 11.1 million euros compared to minus 36.3 million euros in the same period of 2020.

The second quarter EBT was minus 3.9 million euros in 2021 compared to minus 5.3 million euros in 2020.

Consolidated net income from continuing operations in the first half of 2021 was minus € 10.1 million, compared to minus € 36.0 million for the same period in 2020.

Consolidated net income from continuing operations for the second quarter of 2021 was minus 3.6 million euros compared to minus 5.1 million euros for the second quarter 2020.

Basic and diluted earnings per share from continuing operations was minus EUR 0.04 in the second quarter of 2021, compared to minus EUR 0.09 in the same period of 2020.

As of June 30, 2021, Cash and cash equivalents amounted to 62.1 million euros compared to 33.7 million euros at December 31, 2020.

Positive and negative scenarios for fiscal year 2021
At present, given the continuing uncertainty over the likely course of the Covid-19 pandemic in the coming months, it is still not possible to offer a quantitative forecast of the gross margin and the Operational EBITDA.

Instead, based on our forecast, we have established two scenarios – a negative and a positive – for fiscal 2021. They are at either end of the range in which our actual results are likely to fall on the basis. information currently available. available. Each makes different assumptions about the impact of Covid-19 in terms of duration and intensity. Both will be continuously updated. For each of these scenarios, the Management Board prepared qualitatively comparative assessments of the probable impact on gross margin and operating EBITDA.

The following assessment of the Management Board for fiscal year 2021 reflects both the underlying assumptions set out above and, based on our current knowledge, the two scenarios at each end of the range for the potential impact of the Covid. -19.

In the positive scenario, the board expects the HolidayCheck group’s gross margin (revenue minus cost of goods sold) to at least double from the 2020 figure. Nevertheless, it is likely that the gross margin will remain well below the pre-crisis level of 2019.

In the negative scenario, the board of directors expects the HolidayCheck group’s gross margin for 2021 to be roughly equivalent to that of 2020. In fiscal year 2020, the HolidayCheck group achieved a gross margin of 7.3 million euros compared to 131.2 million euros in 2019..

With regard to operational EBITDA, the Management Board anticipates an improvement from one year to the next according to the scenario that proves to be the most precise. The operational EBITDA figure in 2020 was minus € 35.9 million.

Given the current uncertainty, we are unable to provide reliable forecasts for increased gross margin and operating EBITDA.

Outlook
The positive trend in bookings in the second quarter of 2021 is a clear sign that many German, Austrian and Swiss holidaymakers are more eager than ever to travel. At present, however, vacation demand is still held back to some extent by a variety of factors, including complicated travel rules that are seen by many to be inconsistent, low vaccination rates, and concerns about a fourth wave of the pandemic.

However, in the medium to long term, the board of directors of HolidayCheck Group AG believes that there is exceptional growth potential in the travel industry in Central Europe, in particular the online segment.

Given the Group’s lean cost structure, its innovative strength and its strong reputation, as well as its solid liquidity position, the Management Board believes that we are particularly well placed to benefit from this growth potential.

To note
The German version of the interim statement for the first quarter of 2021 will be posted during the day on the company’s website at www.holidaycheckgroup.com under “Investor Relations”.

About HolidayCheck Group AG:
HolidayCheck Group AG (ISIN DE005495329), Munich, Germany, is one of Europe’s leading digital companies for recreational vacations. With a total workforce of around 300, HolidayCheck Group AG includes HolidayCheck AG (which operates the hotel review and travel booking portals of the same name), HC Touristik GmbH (which operates the tour operator HolidayCheck Reisen) and Driveboo AG (which operates the car rental portals MietwagenCheck and Driveboo). The HolidayCheck Group’s vision is to be the world’s most holiday-friendly company.

Media contact and investor relations:
HolidayCheck Group AG
Neumarkt Street 61
81673 Munich
Germany

Armin Blohmann
phone: +49 (0) 89 357 680 901
Fax: +49 (0) 89 357 680 999
Email: [email protected]

Sabine wodarz
phone: +49 (0) 89 357 680 915
Fax: +49 (0) 89 357 680 999
Email: [email protected]

www.holidaycheckgroup.com

08.09.2021 Distribution of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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