Delticom publishes preliminary figures fort he first nine months of 2006 EBIT increased by 52%
Delticom AG Investor Relations
Tel.: +49(0)511-936 34-8903
Hanover, November 16, 2006 – Delticom AG (German Securities Code (WKN) 514680, ISIN DE0005146807, stock exchange symbol DEX) has published its quarterly results for the first time since going public in the Prime Standard. According to preliminary figures, the company has been able to improve its revenues by around 28% to EUR 108.9 million in the first nine months of the current fiscal year compared to the same period of 2005 (Q1-Q3 2005: EUR 85.1 million). The company recorded an above-average increase of almost 39% to EUR 95.3 million in the key eCommerce segment. Delticom’s earnings before interest and taxes (EBIT) were up by 52% to EUR 4.1 million, compared to EUR 2.7 million last year. The net income for the first nine months totaled EUR 2.5 million, or EUR 0.81 per share – up 50% compared to September 30, 2005 (EUR 0.54).
Sales increased faster than expenses due to the scalability of the business model and the improved purchasing conditions. This allowed an increase in all key margins. For example, the gross margin at the end of September 2006 totaled 21.9% compared to 20.5% in the first nine months of last year. The EBIT margin improved from 3.1% to 3.7%.
One key reason for the company’s positive growth from January 1 to September 30, 2006 was, in particular, the significant increase in the customer base with the addition of around 300,000 new tire buyers in the current fiscal year, lifting the total number of registered, active customers to more than one million. In addition, the foreign expansion has been consistently continued. Delticom entered markets including Canada during third quarter, and the 60th online store worldwide has now been opened.
The fourth quarter of the year on the tires market is traditionally the period with the highest sales as a result of the weather-related road conditions. The new legal requirement for winter tires in Germany and the anticipated subsequent demand for winter tires mean that Delticom’s forecast for the fourth quarter is positive. Delticom AG’s Managing Board is confident that it will reach revenues for the year as a whole totaling at least EUR 170 million, and that it will be able to again improve the EBIT margin compared to these Q3 figures.
The full version of the quarterly report will be published on November 22, 2006 and will be available at www.delti.com.
This publication constitutes neither an offer to sell nor an invitation to buy securities. The offer in Germany was made exclusively by means of and on the basis of a prospectus published and available free of charge at the company, the underwriters and the exchange admission board.
This document does not constitute an offer for sale or subscription of or solicitation of an offer to buy or subscribe to securities in the United States of America. The securities of Delticom AG (the “shares”) cannot be offered for sale or subscription in the United States of America or to any “U.S. Person” (as defined by Regulation S of the United States Securities Act of 1933, as amended) nor for the account of any “U.S. Person” unless they are registered or freed from the obligation of registering by the Securities Act. The securities are not and will not be registered under the Securities Act.
Delticom AG has been engaged in wholesaling since 1999 and has additionally operated as an online retailer for tyres since 2000. In the e-commerce segment, the Delticom Group runs more than 60 online shops with different product ranges in more than 25 European countries as well as one shop each in the United States and Canada offering private and business customers the following product portfolio (or parts thereof): tyres for cars, motorbikes, lorries and buses, the corresponding rims, complete wheels (rims with tyres), selected automotive parts and accessories, motor oils and batteries. At the customer’s option, the Company delivers its products either directly to the customer, any of the service partners (i.e. garages cooperating with the Delticom Group, some of which permit the direct delivery of tyres to be mounted on the customer’s vehicle to their addresses) or to any other delivery address as requested. Via its wholesale segment, the Delticom Group additionally offers tyres to wholesalers and large retailers in Germany and abroad.
In the Internet under: www.delti.com
Online tire shop in Germany: www.reifendirekt.de