Delticom AG: 3-month report 2008
Hanover, May 14, 2008 Delticom AG (German Securities Code (WKN) 514680, ISIN DE0005146807, stock exchange symbol DEX), Europes leading tyre retailer, today published its full report for the first three months of 2008. During this period, the company increased its revenues by around 9.4% year-on-year to 42.6 million (Q1 07: 38.9 million). EBIT improved from 0.25 million in Q1 07 to 0.51 million. At the same time, consolidated net income rose to 0.48 million (previous year: 0.37 million).
- Group revenues up 9.4% to 42.6 million
- eCommerce revenues up 8.6% to 38.5 million
- EBIT improves to 0.5 million (Q1 2007: 0.3 million)
- 123,000 new and 61,000 repeat customers
In tyre retailing, the first quarter is traditionally the weakest in sales. This held true in the first quarter of 2008 with unseasonably cool March weather causing many drivers in Germany and other European countries to put off the purchase of summer tyres until April. Despite this, however, Delticom enjoyed positive overall growth compared to last years very successful first quarter. Revenues in the eCommerce division were up from 35.5 million to 38.5 million or 8.6%. In the Wholesale division growth was up 17.8% with revenues of 4.1 million (Q1 2007: 3.5 million).
The key factor driving this growth was the continued positive development of Delticom's customer base. In 2008 123,000 new customers chose to make a purchase through one of Delticom's online shops while during the same period 61,000 repeat customers once again shopped with the firm. These figures underline the attractiveness of Delticom's shops and the products offered. Experts are forecasting that in the future more and more tyres will be bought online. The most recent ADAC report "Reifenmonitor 2008" only underscores the positive prognosis: According to this study, 6.1% of 18 to 39 year-olds surveyed stated that they had made their last tyre purchased online (2007: 4.8%). 28.1% (2007: 26.4%) of this younger and Internet-savvy target group intend to make future tyre purchases online.
On the German home market, Delticom saw relatively moderate first quarter growth of 5.4% to 14.9 million. This is contrasted by stronger revenues increases achieved in a number of foreign markets: With revenues up 13.1% to 23.0 million the other EU-countries had the highest rates of growth, with the remaining foreign markets showing growth of 5.5% to 4.7 million.
We are pleased with the results achieved during the first quarter of this fiscal year, commented Frank Schuhardt, Delticom AGs CFO. Of course we would have liked the winter to be cold and snowy with March being warmer. Drivers needed fewer winter tyres and then they saw no reason to change to summer tyres. However, the summer season got off to a good start in April, and the current sales figures are encouraging. At the same time, the first quarter results indicate that our internationalization strategy is indeed a good way to achieve both consistent, sustainable growth and insulate ourselves against the seasonal fluctuations in individual markets.
The full report for the first quarter of 2008 can be downloaded from the Web site www.delti.com in the Investor Relations section.
Founded in Hanover, Germany in 1999, Delticom AG has grown to become Europe's leading online tyre retailer. Through its network of 92 online shops in 32 countries, the company offers private and business customers a broad range of products including car tyres, motorcycle tyres, truck tyres, bus tyres, wheel rims, pre-assembled tyres on rims, selected spare parts and accessories, motor oils and batteries. At its online shops, Delticom customers can choose from over 100 tyre brands and more than 25,000 tyre models. In addition, each shop provides customers with extensive information and reviews on the products for sale. Depending on the customer's preference, purchases are delivered either directly to the customer or to a Delticom service partner, garages which cooperate with the company to accept tyre deliveries for installation directly on to the customer's vehicle. In addition to this retail business, Delticom sells tyres to wholesalers in Germany and abroad.
On the Internet at: www.delti.com
Online tyre store in the UK: www.mytyres.co.uk
|Delticom AG Investor Relations
|Tel.: +49(0)511-936 34-8903
|Fax: +49(0)511-8798-9138 |
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