Preliminary revenues for 2007 at upper end of forecast
- Revenues total 214 million up 24% year-on-year
- EBIT between 12.0 and 12.5 million previous year 10.2 million
- More than 600,000 new eCommerce customers
- Foreign expansion gaining ground: Formation of Delticom North America Inc.
Hanover, 31 January 2008 Delticom AG (German Securities Code (WKN) 514680, ISIN
DE0005146807, stock exchange ticker DEX), Europe's leading Internet tyre retailer, has
substantially increased its revenues based on preliminary consolidated IFRS figures.
Revenues have surged by around 24% year-on-year to 214 million (previous year:
173 million), at the upper end of the company's forecast ( 210 215 million). At the
same time, EBIT of between 12.0 million and 12.5 million is anticipated for financial
year 2007 (previous year: 10.2 million).
eCommerce revenues totalled 194 million, up 25% compared to 2006 ( 155 million).
Revenues in the Wholesale division were up year-on-year from 18 million to 20 million.
Delticom's strong growth in 2007 was again due to the ongoing positive growth in business at
its online shops such as www.reifendirekt.de. Delticom now has a total of 86 online shops in
30 countries. More than 600,000 new customers were acquired in 2007, raising the total
number of customers to more than 1.8 million. There was also constant growth in the number
of partner workshops: right now customers can have their tyres fitted in more than 20,000
workshops worldwide with more than 5,000 in Germany alone.
In total, business with winter tyres in Germany was not as strong as in previous years: In mid-December, the BRV (Bundesverband Reifenhandel German Tyre Retail Association) announced that a substantially lower number of tyres were sold in Germany in 2007 compared to 2006. This was due to reasons including the mild weather last winter and the fact that sales in 2006 were inflated by new statutory regulations. As a tyre retailer, Delticom was not able to fully break away from these developments, however it was able to increase its revenues last fiscal year in contrast to the trend in Germany.
International sales markets also became more important for Delticom in 2007. A key milestone in the company's internationalization strategy is the recently completed formation of Delticom North America Inc. in Portland, Oregon, USA. The Delticom Group is thus further expanding its presence in the North American online tyre market, creating the foundations for long-term sustainable growth into the US market. "Forming our own subsidiary in North America puts us right where our American customers are," commented Philip von Grolman, the Managing Board member responsible for the company's North American business.
Rainer Binder, a member of Delticom AG's Managing Board and Co-CEO commented on the preliminary revenues: "Fiscal year 2007 was excellent for Delticom. Although developments in the German market were not particularly pleasing, we were still able to reach our targets for 2007 as a high-growth, internationally oriented company. And what's most important: as
the cost leader we were again able to combine growth with high margins."
Delticom will publish its full 2007 financial statements on 26 March 2008 on its Web site (www.delti.com) in the Investor Relations section.
Delticom was formed in Hanover in 1999 and has grown to become one of Europe's leading
Internet tyre retailers. The company offers its private and business customers a wide range of
products in its 86 online shops in 30 countries, including car tyres, motorcycle tyres, truck tyres,
bus tyres, the respective rims, complete wheels (pre-mounted tyres on rims), select
replacement car parts and accessories, engine oils and batteries. Delticoms 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 types. 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.
On the Internet at: www.delti.com
UK Online tyre store: www.mytyres.co.uk
|Delticom AG Investor Relations
|Tel.: +49(0)511-936 34-8903
|Fax: +49 (0)89-208081147 |
Unter den Eichen 7
Tel.: +49 (0)611-205855-13
Fax: +49 (0)611-205855-66
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