head unternehmen 20120712
 
Company

    We are delighted to be able to report a strong set of results for the first half of 2010.

    Letter to Shareholders

    Dear Shareholders

    We are delighted to be able to report a strong set of results for the first half of 2010.

    At EUR 59.2 million, revenue was up 45 percent on the same period in 2009 and represents the highest half-yearly total in the company’s history stretching back over ten years.

    We are particularly glad to note that all three of our business segments contributed to this success. Revenue from E-Commerce and Technology grew by around 41 percent and 46 percent respectively, while the Portal segment showed an impressive rise of around 60 percent.

    Earnings also improved despite the impact of high level of capital investment targeted at further expansion. By way of example, the figure for EBITDA was 22 percent higher at EUR 7.0 million.

    The equity ratio, which is a guide to the stability of a company’s balance sheet, stood at 54.8 percent compared to 47.2 percent at the end of the same period in 2009.

    In the E-Commerce segment, the first half of 2010 was again dominated by a series of targeted marketing activities, with both HolidayCheck and ElitePartner taking advantage of the continued lull in advertising prices to generate a significant increase in revenue. In addition, HolidayCheck invested heavily in the further internationalisation of its business model.

    We can also report some positive news from the Portal segment, where Premium Marketing experienced a major recovery in its outside client business and recorded a substantial year-on-year increase in new orders. By contrast, in line with most other German news portals over the period, Focus Online was hit by sluggish demand from advertising customers. A relaunch of the website two weeks ago with new large-format advertising is to help generate a renewed increase in advertising revenue.

    London-based AdJug Ltd., which operates two online advertising marketplaces in the UK and Germany and has been fully consolidated since December 2009, also delivered an encouraging performance in the first half-year, even though, as expected, it was unable as yet to return a profit over the period.

    Results in the Technology segment were also positive, with our mobile services provider Cellular in particular benefiting from continued strong demand for mobile applications.

    Looking ahead to the second half of 2010, our task now is to make full use of the opportunities that present themselves in all three segments.

    To this end, we are planning further investment in the E-Commerce segment for the second half-year in order to produce sustained growth in revenue and profits.

    HolidayCheck AG is currently preparing to enter the French market, allowing visitors to the site to book package holidays as well as submit hotel ratings.

    In the light of its tremendous success in the second and third quarters, HolidayCheck will also be investing heavily in television advertising. We therefore expect it to maintain its established pattern of growth.

    Online dating agency ElitePartner also plans to invest in further marketing campaigns in the second half-year on the back of a pleasing increase in revenue to date. It is also laying the technical foundations that will allow it to implement the planned internationalisation of its own platform over the coming year.

    The main challenge facing the Portal segment in the second half of 2010 is that of improving its present earnings situation. This will involve conducting a thorough rethink of its existing portfolio strategy by the end of the year.

    The profitable area of Premium Marketing should have no difficulty in demonstrating its own contribution to sustained growth.

    Within the Technology segment, Cellular and TOMORROW FOCUS Technologies will again concentrate on the task of winning new customers.

    With a view to further strengthening our equity ratio and consequently our financial independence, we intend to reduce our existing borrowings by around EUR 8 million in the third quarter.

    Combined with our strong cash flow, the reduction in our level of debt puts us in a position where we can acquire larger, attractive business models. We have therefore decided to modify our previous acquisitions strategy accordingly. Whereas over the last eighteen months we have concentrated our activities in this area on unprofitable start-up companies, we now intend to focus on the acquisition of larger, already profitable enterprises. Our aim will then be to develop them into leading national or even international brands following the pattern established by HolidayCheck and ElitePartner.

    We are therefore very confident of being able to maintain our track record of growth over the rest of the current year and beyond.

    Yours sincerely

    The Management Board

    Contact

    Armin Blohmann
    Armin Blohmann

    Head of Group Communications & Investor Relations

    TOMORROW FOCUS AG

    Contact details

    Armin Blohmann
    Armin Blohmann

    Head of Group Communications & Investor Relations

    • TOMORROW FOCUS AG
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    Contact

    Neumarkter Str. 61

    81673 München

    Phone: +49 (0) 89 9250 1256

    Fax: +49 (0) 89 9250-2403

    Email: a.blohmann@tomorrow-focus.de

    Sabine Wodarz
    Sabine Wodarz

    Deputy Head Group Communications & Investor Relations

    TOMORROW FOCUS AG

    Contact details

    Sabine Wodarz
    Sabine Wodarz

    Deputy Head Group Communications & Investor Relations

    • TOMORROW FOCUS AG
    • MeteoVista
    • Tjingo
    • Zoover
    Contact

    Neumarkter Str. 61

    81673 München

    Phone: +49 89 9250-1208

    Fax: +49 89 9250-2403

    Email: s.wodarz@tomorrow-focus.de