Delticom AG: 2007 semi-annual report
- Revenues up 35.2% to € 102.0 million
- 41.7% revenue growth in eCommerce segment (compared to H1 2006)
- EBIT increased to € 5.4 million (H1 2006: € 3.7 million)
- EBIT margin up to 5.3 % (H1 2006: 4.9 %)
- More than 300 thousand new eCommerce customers, more than 100 thousand repeat customers
Delticom AG (German Securities Code (WKN) 514680, ISIN DE0005146807, stock market symbol DEX), Europe’s leading Internet tyre retailer, today published its consolidated interim report for the first six months of 2007. The company recorded revenue growth of around 35.2% in the first six months compared to the first six months of 2006, with the total rising to € 102.0 million (H1 2006: € 75.4 million). EBIT increased from € 3.7 million in H1 2006 to € 5.4 million. At the same time, net income for the period increased to € 3.7 million (compared to H1 2006: € 2.2 million).
Revenues in the key eCommerce segment were up 41.7 % in H1 2007 to € 94.1 million from € 66.4 million in H1 2006. The number of registered customers in the eCommerce segment, i.e. the customers who have purchased at least once from Delticom in the past (including the current fiscal year) increased from 974 thousand at the end of the second quarter of 2006 to 1,555 thousand one year later. Delticom acquired 306 thousand new eCommerce customers in H1 2007, with 112 thousand registered customers making a repeat purchase from Delticom in the period under review.
Although Delticom continues to enjoy strong sales in Germany, the company’s growth is increasingly driven by its expansion abroad. The group recorded increases in sales in all 30 countries in all of its total of 79 online shops. In total, the eCommerce division registered sales in Germany of € 41.3 million (+ 25.6% compared to H1 2006), € 48.2 million in other EU countries (+ 51.0% compared to H1 2006) and € 12.5 million in other countries (+ 17.7 % compared to H1 2006).
“We are happy with the first six months”, commented Frank Schuhardt, Delticom AG’s CFO, and added: "More and more Internet users hear about our online-shops and buy their tyres there. And more and more of our customers have already made multiple purchases with us. In the second half of the year we will continue to raise the profile of the shops with efficient online advertising – not just in Europe, but also in the rest of the world."
It is not yet possible to draw reliable conclusions about sales and earnings growth for FY 2007 on the basis of the first six months because winter tyre sales in the fourth quarter depend at least to some extent on the weather. Delticom is adequately prepared for the winter tyre season, and the management is confident that it will be able to fulfill the sales and earnings expectations for the year as a whole.
Delticom was formed in Hanover in 1999 and has grown to become Europe's leading Internet tyre retailer. The company offers its private and business customers a wide range of products in its 93 online shops in 35 countries, including car tyres, motorcycle tyres, truck tyres, bus tyres, the respective rims, complete wheels (pre-mounted tyres on rims), selected replacement car parts and accessories, engine oils and batteries. Delticom's customers receive information on product characteristics and alternatives; they benefit from a comprehensive range of goods with more than 100 tyre brands and more than 25,000 tyre models. The products are supplied, depending on the customer's instructions, either directly to the customer, to a service partner, i.e., a workshop with which Delticom cooperates and which allows tyres to be delivered directly to their address to be mounted on the customer's vehicle, or to a different delivery address. In addition, Delticom's Wholesale division also sells tyres to wholesalers in Germany and abroad.