|TRIVAGO N.V. filed this Form 6-K on 07/25/2018|
Net income/(loss) attributable to trivago N.V. and Adjusted EBITDA(1) (€ millions)
Note: Some figures may not add due to rounding.
(1) “Adjusted EBITDA” (Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization, and Share Based Compensation) is a non-GAAP measure. Please see “Definitions of Non-GAAP Measures” and “Tabular Reconciliations for Non-GAAP Measures” on pages 23-24 herein for explanations and reconciliations of non-GAAP measures used throughout this release.
Net loss attributable to trivago N.V. was €20.7 million and €42.5 million in the second quarter of 2018 and in the six months ended June 30, 2018, respectively, reflecting an increase of our operating expenses relative to our revenue. Revenue was negatively impacted by lower levels of commercialization and our decision to decrease advertising spend in the second quarter of 2018. Adjusted EBITDA was a loss of €17.7 million in the second quarter of 2018, compared to €3.2 million in the second quarter of 2017. Consequently, Adjusted EBITDA decreased to a loss of €39.6 million in the six months ended June 30, 2018 compared to €22.5 million in the same period in 2017.
Income tax benefit was €6.6 million in the second quarter of 2018 compared to expense of €0.3 million in the same period in 2017. The total weighted average tax rate was 30%, which is mainly driven by the German statutory rate of approximately 31%. Our effective tax rate was 24.1% largely due to the effect of share-based compensation expenses, which are non-deductible for tax purposes, compared to (10.4)% in the second quarter in 2017.
In the six months ended June 30, 2018, income tax benefit was €13.9 million compared to income tax expense of €5.0 million in the same period in 2017. Our effective tax rate was 24.7% compared to 54.0% in the same period in 2017. The effective tax rates for the second quarters of 2018 and 2017 were mainly due to the effect of share-based compensation expenses.