In 2018, Homes & Holiday AG completed its transitional year and will see growth in 2019 in its core market of the Balearic Islands again

- Turnover: EUR1.95 million (previous year: EUR2.22 million); annual result: a loss of EUR4.12 million (previous year: a loss of EUR2.03 million)

- Cost basis reduced by approx. EUR1.6 million a year

- Buy-and-Build successful: holiday letting will make a positive contribution to sales starting in 2019

- Property market in the Balearics has had a noticeable revival in the first few months of 2019

- Outlook: focus on achieving sustainable profitability

Munich/Palma de Mallorca, 16 May 2019. Homes & Holiday AG (ISIN: DE000A2GS5M9), a specialist for holiday properties in Spain and urban properties in Germany, today published its consolidated financial statements for 2018. As already announced in October 2018, growth last year did not meet the company's expectations.

In 2018, Homes & Holiday generated consolidated sales of EUR 1.95 million (previous year: EUR 2.22 million) and a net loss of EUR 4.12 million (including one-off costs for the IPO of around EUR1.0 million), after posting EUR 2.03 million in losses the previous year. As a result of the IPO, the company's equity increased from EUR 1.38 million to EUR 3.04 million in 2018. This corresponded to a solid equity ratio of 61.9%. As of the closing date, Homes & Holiday had virtually no financial liabilities.

Especially in the core market of the Balearic Islands, the company was unable to match the growth of recent years. The weak start to the year was not expected and was due to the number of air connections drastically reduced in the short term due to the Air Berlin bankruptcy. This could not be made up completely in the further course of the year. This affected the entire industry. The property transaction volume in the Balearics dropped by 4.6% from EUR 4.23 billion in 2017 to EUR 4.03 billion in 2018. Foreign buyer transactions fell by 11.9% to EUR 1.68 billion. Foreigners are predominantly active in the holiday property market and are thus the most important target group for Homes & Holiday.

Important strategic decisions made, acquisitions implemented, costs reduced
"Operationally, 2018 was not satisfactory. At a strategic level, however, we were able to implement some important measures. As announced at the IPO, we pushed ahead with our buy-and-build strategy. In addition, we have significantly reduced the cost structures within our group," says Joachim Semrau, founder and CEO of Homes & Holiday AG. "We therefore strongly believe that last year was a year of transition. We are still convinced of the long-term opportunities offered by our business model. Because the combination of real estate brokerage and holiday letting offers both growth potential and synergies."

In holiday letting, the Group has become number two on the Balearic Islands with the successful acquisitions of Top Villas Mallorca, Finca Booking, and EasyFinca, and has reached the critical size of around 1,000 holiday homes on offer, with the aim of exploiting future economies of scale. The new portfolio is being presented in a new format on the booking portal https://www.portaholiday.de starting this week.

The cost reductions particularly affected the development of locations in Germany. The first measure was the closure of the headquarters in Düsseldorf. In the future, the Mallorca office will handle services for partners in Germany. A decision on any new location will be deferred until the basic strategy for Germany is adopted. This should take place in the first half of 2019. Overall, Homes & Holiday reduced its annual cost basis by around EUR 1.6 million.

At the same time, measures were taken to make greater use of the sales potential, especially in the Balearics. There, the subsidiary Porta Mallorquina Real Estate is a leading estate agency firm. Portals Nous was added as a ninth location in June 2018. In the summer of 2018, the first property shop in Menorca was opened. In the first half of the current year, two new licenses were issued in Mallorca for the central and Palma West regions The new partners are arriving at the right time. In the first few months of 2019, the company is once again noticing a noticeable market revival.

Outlook: focus on sustainable profitability within the growth strategy
The group's focus is clearly on achieving sustainable profitability. With the measures described, Homes & Holiday will come a good deal closer to this goal in the current year. Despite the transitional year 2018, the company is basically adhering to the growth strategy for the coming years. Holiday letting should contribute positively to the group's growth in sales from 2019 onwards. Homes & Holiday remains on an expansion course in the brokerage business, too. In Mallorca, sales with the new franchise partners should pick up again in 2019. The strategy in Germany and in the Spanish vacation destinations outside the Balearics is currently undergoing a fundamental review.

Contact
Homes & Holiday AG // Ludwigstraße 8 // 80539 Munich // https://www.homes-holiday.com

Press & image requests
Ulrike Eschenbecher // Tel. +49 171 753 26 10 // Tel. +49 89 2060 21 38 // ulrike.eschenbecher@homes-holiday.com

Investor Relations & Financial Press
Fabian Lorenz // Tel. +49 221 29 83 15 88 // ir@homes-holiday.com

About Homes & Holiday AG
Headquartered in Munich, Homes & Holiday AG is the first franchise system to specialise in holiday properties together with its subsidiaries Porta Mondial, Porta Mallorquina, and Porta Holiday. Within an integrated business model, the Group offers all services from traditional brokerage (Porta Mondial / Porta Mallorquina), holiday leasing (Porta Holiday) to property management (through external service providers). The group focuses its locations on Spain and Germany, Europe's most attractive markets for holiday real estate.