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SEC Filings

6-K
TRIVAGO N.V. filed this Form 6-K on 02/06/2019
Entire Document
 

driven by reductions in Advertising Spend to €33.9 million, €33.3 million and €32.6 million in Americas, Developed Europe and RoW, respectively, compared to €53.6 million, €51.3 million and €44.8 million in the same period in 2017. In the twelve months ended December 31, 2018, selling and marketing expense decreased by €142.2 million, or by 15%, year-over-year to €804.7 million, of which €731.5 million, or 91% was Advertising Spend. The decrease was driven by reductions in Advertising Spend to €261.6 million, €264.0 million and €205.8 million in Americas, Developed Europe and RoW.

For the fourth quarter of 2018, we continued to optimize our Advertising Spend across all segments in order to improve our Return on Advertising Spend ("ROAS"). In the fourth quarter of 2018, we reduced Advertising Spend by 37% in Americas, 35% Developed Europe and 27% in RoW, compared to the same periods in 2017. In the twelve months ended December 31, 2018, Advertising Spend decreased by 23% in Americas, 19% in Developed Europe and 7% in RoW, compared to the same periods in 2017. The decreases in Advertising Spend in the twelve months ended December 31, 2018 were primarily due to the reductions we made starting in the second quarter of 2018. In Americas and RoW, Advertising Spend also benefited from favorable movements in foreign exchange rates notably in the first half of 2018, reflecting the relative weakening of the U.S. dollar and of certain currencies in the Asian Pacific region to the euro as a smaller part of the Advertising Spend in these regions is also invoiced in local currencies.

For the fourth quarter of 2018, other selling and marketing expense excluding share-based compensation increased by €0.8 million to €16.1 million, or 5% period-over-period, and for the twelve months ended December 31, 2018, increased by €11.2 million to €69.9 million, or 19% year-over-year. Most of the increase was driven by higher investments in the production of television advertisements of €1.8 million and €9.8 million during the fourth quarter and twelve months ended December 31, 2018, compared to the same periods in 2017. In the fourth quarter of 2018, personnel costs decreased by €0.6 million, primarily due to a reduction in our compensation expense and related social security amounts of €1.4 million as our headcount decreased compared to the same period in 2017, which was partly offset by an increase in social security expense resulting from an audit assessment by the German Social Security authorities of €0.9 million relating to prior periods. In the twelve months ended December 31, 2018, personnel costs increased by €1.3 million, mainly driven by an increase in social security expense resulting from an audit assessment by the German Social Security authorities in 2018 of €0.9 million predominantly relating to prior periods, as well as severance payments of €0.6 million and an increase in compensation expense and related social security amounts of €0.7 million as our headcount was higher in the first two quarters of 2018 compared to the same period in 2017. These increases were slightly offset by lower employee benefits in the twelve months ended December 31, 2018 compared to the same period in 2017. In the twelve months ended December 31, 2018, our office and depreciation expense increased by €1.3 million, which was partly offset by the effect of the deconsolidation of myhotelshop.

Share-based compensation decreased by €0.1 million to €0.7 million in the fourth quarter of 2018, and decreased by €0.2 million to €3.3 million in the twelve months ended December 31, 2018 compared to the same periods in 2017.


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