|TRIVAGO N.V. filed this Form 6-K on 10/24/2018|
administrative expense until move-in in June 2018 and has since been allocated amongst operating costs. Depreciation of the fixed asset commenced upon construction completion, resulting in €0.7 million of depreciation expense for the third quarter of 2018 and €0.9 million for the nine months ended September 30, 2018, of which the majority is recorded as technology and content expense.
Amortization of intangible assets
Amortization of intangible assets remained unchanged at €0.4 million during the third quarter of 2018 and decreased by €1.5 million to €1.3 million during the nine months ended September 30, 2018 compared to the same periods in 2017. These amortization costs relate predominantly to intangible assets recognized by Expedia Group upon the acquisition of a majority stake in trivago in 2013, which were allocated to trivago. The amortization expense decreased for the nine months ended September 30, 2018 as some of these intangible assets reached the end of their useful lives in the first quarter of 2017.
Share-based compensation increased by €0.5 million to €5.4 million in the third quarter of 2018 and by €2.9 million to €15.2 million in the nine months ended September 30, 2018, compared to the same periods in 2017.
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 24 to 25 herein for explanations and reconciliations of non-GAAP measures used throughout this release.
Net income attributable to trivago N.V. was €10.1 million in the third quarter of 2018, reflecting a substantial increase in our profitability as we reduced our Advertising Spend to adapt to the changing dynamics on our marketplace. Adjusted EBITDA increased to €26.6 million in the third quarter of 2018, compared to a loss of €7.1 million in the third quarter of 2017. The decline in Adjusted EBITDA to a loss of €13.0 million in the