Design Hotels AG: Report on the First Six Months of 2010

Design Hotels AG / Report on the First Six Months of 2010 processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.

• Return to growth
• Results turn to positive

 

Berlin August 02, 2010 - Design Hotels AG (Regulated Market, Munich: LBA; ISIN: DE0005141006), integrated provider of marketing and positioning services for individually managed hotels and small hotel groups in the New Luxury Segment, today reports its results for the 1^st half year of 2010 under IFRS.

 

Financial Highlights for the Design Hotels Group:

 

Revenues for the first six months of 2010 grew by approximately 16% to €4.32 million (09H1: €3.71 million). All business areas contributed to the increase. With an increase of around 24% to €1.98 million, booking commissions showed the strongest growth. The contribution of this business area to total revenues increased from 43% to 46%. Revenues from memberships grew by 12% to €1.23 million (€1.10 million). Marketing Products/Consulting saw a 10% increase to €1.11 million (€1.01 million).

 

The Gross Margin for the first six months was with 70% below last year's level (74%), mainly due to the larger contribution of Marketing Products to the revenue mix.

 

EBITDA for the first half of 2010 showed a positive €120,000, while the first quarter still showed an operational loss of €14,000. EBITDA for the first six months of 2009 was a negative €131,000.

 

EBIT came in at €6,000, as compared to a loss of €221,000 for the first six months of 2009.

 

Net Profit was €16,000, as opposed to a loss of €208,000 for the same period last year.  Earnings per share came in at €0.0017 (€ -0.02)

 

As of 30 June 2010, the Company had cash and cash equivalents of €2.55 million, up slightly from €2.53 million for 31 December 2009. Shareholders' equity at the end of the reporting period was €4.81 million, as compared to €4.80 million at the beginning of the financial year. The Company's balance sheet, as before, is free from debt.

 

Additional Notes:

 

CEO Claus Sendlinger commented: "I am pleased that we can report to our shareholders that we have returned on the growth path earlier than we expected a year ago. The positive development of the Company is due to a clear revival of bookings and the growing number of member hotels.  The month of June even saw a record high in the value of bookings brokered. It is clear that we are benefiting from the quick economic recovery, especially in North America and in Asia Pacific.  This shows once again that the hospitality sector is more closely linked to the general economic environment than other business areas.
At the same time our member hotels are still hesitant to invest in marketing activities. The significant increase in second quarter revenues for Marketing Products/Consulting compared to last year's figures is due to project-related variations in the realization of revenue. During the second quarter, several projects in both development and marketing were completed and/or recognized. For the second half of the year, we are expecting lower revenues from this segment.

 

We expect the positive trend in bookings to continue. The same is valid for the number of member hotels, which will exceed 200 hotels in 2010. For the full year, we expect a single digit revenue growth and a disproportionally stronger development of our earnings."

 

Contact:
Design Hotels AG
Claus Sendlinger (CEO)
Stralauer Allee 2c
10245 Berlin
P [phone]
F [phone]
[e-mail]

Schwarz Financial Communication
Frank Schwarz
P [phone]
F [phone]
[e-mail]
 
 
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 199 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, ISIN: DE0005141006, Munich Stock Exchange (Regulated Market)

HUG#1435217

Report on the First Six Months of 2010 as PDF Download (http://hugin.info/136390/R/1435217/380627.pdf)

--- End of Message ---

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;