HomeToGo raises adjusted earnings guidance after a record quarter
Luxembourg-based vacation rental group HomeToGo raised its annual adjusted earnings forecast on November 12 after a record third quarter. It retained its revenue target while nine-month free cash flow turned positive. Growth in services for businesses and savings from the Interhome integration accompanied the improvement; the final quarter remains subject to the group’s usual seasonality.
Economics & Markets··Midday
Annual adjusted earnings target rises
Luxembourg-based vacation rental group HomeToGo raised its annual earnings guidance on November 12 after a record third quarter.[1], [2]
It now targets adjusted earnings before interest, tax, depreciation and amortisation of 48–50 million euros, up from 45–47 million euros. This is an adjusted measure outside standard financial reporting. Annual revenue guidance stayed at 400–410 million euros. Management pointed to the summer season and faster-than-expected savings from integration.[1]
Business services expand and cash flow turns positive
Nine-month revenue rose 72.6 percent to 347.4 million euros, while adjusted earnings reached 62.3 million euros. Free cash flow moved from an outflow of 25.5 million euros to an inflow of 31.9 million euros. HomeToGo PRO, the division providing services to businesses, increased revenue 193.1 percent to 237.3 million euros. Its adjusted earnings reached 45.9 million euros, compared with 16.4 million euros at the consumer marketplace business.[1]
Interhome integration delivers savings
HomeToGo said integration of vacation rental business Interhome had already met the annual savings target of 10 million euros. Closing a German legal entity and restructuring in France brought another 4 million euros in annualised savings. Consumer marketplace adjusted earnings increased 63.9 percent despite lower marketing spending. Management expects usual seasonal patterns in the final quarter, following the stronger summer period. Nine-month adjusted earnings therefore exceed the newly raised full-year range.[1]
Related columns
For more information on this topic, you can read the related columns.
