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SEC Filings

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

reportable segments is primarily related to the different stages of development of our markets. In the fourth quarter of 2018, we experienced a relatively modest period-over-period decline in Referral Revenue in Developed Europe, our segment that includes the markets where we have operated the longest and where we have the highest level of brand awareness. Our revenue levels are relatively more resilient in our newest markets, and as a result, our Referral Revenue in RoW was flat in the fourth quarter of 2018 and increased slightly in the twelve months ended December 31, 2018 as compared to the same period in 2017.
 
Three months ended December 31,
 
Twelve months ended December 31,
2018
 
2017
 
Δ €
 
Δ %
 
2018
 
2017
 
Δ €
 
Δ % Y/Y
Americas
53.9

 
65.8

 
(11.9)
 
(18)%
 
316.0

 
391.7

 
(75.7)
 
(19)%
Developed Europe
67.2

 
69.9

 
(2.7)
 
(4)%
 
378.9

 
425.0

 
(46.1)
 
(11)%
Rest of World
41.3

 
41.5

 
(0.2)
 
0%
 
204.9

 
203.6

 
1.3
 
1%
Total Referral Revenue
162.4

 
177.2

 
(14.8)
 
(8)%
 
899.8

 
1,020.3

 
(120.5)
 
(12)%
Other Revenue
4.4

 
4.3

 
0.1
 
2%
 
15.0

 
15.0

 
0.0
 
0%
Total Revenue
166.8

 
181.5

 
(14.7)
 
(8)%
 
914.8

 
1,035.4

 
(120.6)
 
(12)%
Note: Some figures may not add due to rounding.

Total Revenue decreased by €14.7 million, or by 8% during the fourth quarter of 2018, and by €120.6 million, or by 12%, during the twelve months ended December 31, 2018, compared to the same periods in 2017. In the fourth quarter of 2018, revenue levels continued to be negatively impacted by a decline in Qualified Referrals and the unfavorable movements in foreign exchange rates discussed above while levels of commercialization improved slightly. In the twelve months ended December 31, 2018, revenue levels were negatively impacted by a decline in Qualified Referrals, lower levels of commercialization and unfavorable movements in foreign exchange rates.

Referral Revenue in the fourth quarter of 2018 decreased to €53.9 million and €67.2 million, or by 18% and 4% in Americas and Developed Europe, respectively, while Referral Revenue was flat at €41.3 million in RoW, as compared to the same period in 2017. Referral Revenue in Americas was negatively impacted by declining Qualified Referrals reflecting the reductions in our Advertising Spend, the unfavorable movements in foreign exchange rates and a shift towards lower RPQR locales within the segment, particularly away from North America. Referral Revenue in Developed Europe was negatively impacted by a decline in Qualified Referrals partly offset by the positive effect from a significant improvement in traffic quality as RPQR in Developed Europe improved significantly in the fourth quarter of 2018. Referral Revenue in RoW was flat compared to the same period in 2017 as the positive effect from improved traffic quality were offset by a decline in Qualified Referrals.

Referral Revenue in the twelve months ended December 31, 2018 decreased to €316.0 million and €378.9 million, or by 19% and 11% in Americas and Developed Europe respectively, as compared to the same period in 2017. Referral revenue in the twelve months ended December 31, 2018 increased slightly to €204.9 million or by 1% in RoW as compared to the same period in 2017. Referral Revenue in Americas was negatively impacted by the decline in Qualified Referrals, reflecting the reductions in our Advertising Spend, an unfavorable revenue shift towards lower RPQR locales, particularly in the second half of 2018, lower levels of commercialization and unfavorable foreign exchange effects, reflecting the relative weakening of the U.S. dollar to the euro notably in the first half of 2018 and the relative weakening of certain Latin American currencies to the euro throughout the year. Referral Revenue in Developed Europe was negatively impacted by a decline in Qualified Referrals and lower levels of commercialization, which were partly compensated by slightly improved traffic quality. Referral Revenue in RoW increased slightly compared to the same period in 2017 as the positive effects from increased Qualified Referrals in the first half of 2018 and slightly improved traffic quality were largely offset by lower levels of commercialization and unfavorable foreign exchange rate effects, reflecting the relative weakening of the U.S. dollar and certain currencies in the Asia Pacific region to the euro.


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