Design Hotels AG Publishes the Results for the 3rd of 2008

3 november 2008Corporate news announcement processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- -------------- Revenues grow by 11% Net Margin improves compared to previous quarters Berlin, 03 November 2008 - Design Hotels AG (Regulated Market, Munich: LBA; ISIN: DE0005141006), consulting, marketing and positioning service provider for hotels and small hotel groups listed in the new luxury segment, today published its results, under IFRS, for the third quarter and first nine months of 2008. Financial Highlights for the Design Hotels Group: Revenues in the first nine months of 2009 increased by approximately 11% to 6.29 million Euro (2007: Â¤5.65 million) with all business segments contributing to the growth. In September, commissions reached an all time high on a monthly basis. Booking commissions accounted with 3.32 million Euro (+6%) for the majority of total revenues. Membership fees reached 1.56 million Euro (+13%), Marketing Products and Consulting generated revenues of 1.41 million Euro (+23%). The Gross Margin for the first nine months was 76%, roughly similar to last year's (75%) The EBITDA for the first nine months came in at 818,000 Euro compared to 991,000 Euro for the same period the previous year. Contributing to the result were extraordinary items totaling 130,000 Euro, whereas last year the contribution of extraordinary items was 271,000 Euro. Adjusted, the operational result for the reporting period fell by 4% to 688,000 Euro (2007: 720,000 Euro). The adjusted EBITDA margin was 10.9% (2007: 12.7%) EBIT for the reporting period reached 683,000 Euro, or 553,000 Euro adjusted for extraordinary items. This represents a decrease by 13% compared to 615,000 Euro for the same period in 2007 (before adjustments: 886,000 Euro). Net profits came in at 693,000 Euro, or 563,000 Euro after adjustments. The adjusted net profits fell, compared to last year's 665,000 Euro (936,000 Euro before adjustments), by 15%. Earnings per share were 0.08 Euro (2007: 0.11 Euro). On September 30, the Company had cash and cash equivalents of 2.52 million Euro, compared to 2.20 million Euro on December 31, 2007. Shareholders' equity increased from 4.73 million Euro to 5.42 million Euro during the first nine months of the current year. Additional Notes: CEO Claus Sendlinger stated, "The small decline in the revenue growth rate for the third quarter and the improvement of our net margin compared to the first six months of this year, are entirely in line with our expectations for the current financial year. Despite the current economic climate, at two months before the end of the current financial year we expect to achieve our objectives of single digit revenue growth and a positive EBITDA just below last year's result." "The current economic climate is starting to affect the travel industry. This manifests itself in lower occupation rates and increasing pressure on room rates. Despite this, we have managed to grow our revenues, while the number of rooms available remained equal. We consider this as an indication of the strength of the Design Hotels brand, as well as the added value of our service offerings. In view of the worsening market conditions, it remains our main goal to make our customers aware of this strength, as well as the benefits and potential of our service portfolio", concluded Sendlinger. At the end of the third quarter, the Design Hotels brand represented 173 hotels (2007: 169) with 12,711 rooms. With 380 membership applications, demand remains high. Since the start of the year, 18 new houses were accepted. Despite the relatively constant number of members, managed bookings for the period increased by 17% compared to last year and the value of these bookings rose by 9% to 52 million Euro. Contact: Design Hotels AG Claus Sendlinger (CEO) Stralauer Allee 2c 10245 Berlin Tel. +49 (0)30 88 484 00 01 Fax +49 (0)30 25 933 01 7 ir@designhotels.com Schwarz Financial Communication Frank Schwarz Tel. +49 (0)611 17453 9811 Fax +49 (0)611 17453 9829 schwarz@schwarzfinancial.com Design Hotels AG (formerly: lebensart global networks AG) is an integrated provider of communication and positioning services and acts as a consultant for individually managed hotels and small hotel groups. The service range of design hotels begins with the concept for a hotel. Clients of design hotels AG can choose from a modular service portfolio. With the brand Design Hotels(TM) the company currently represents and markets a unique collection of over 170 individual hotels in more than 40 countries. Through its marketing and communication activities Design Hotels AG forms the connection between the member hotel and a global clientele looking for self-determination and individuality. www.designhotels.com, ISIN: DE0005141006, Munich Stock Exchange (Regulated Market) --- End of Message --- Design Hotels AG Stralauer Allee 2c Berlin Germany WKN: 514100; ISIN: DE0005141006; Listed: Freiverkehr in Frankfurter WertpapierbÃ¶rse, Freiverkehr in BÃ¶rse Berlin, Freiverkehr in Hanseatische WertpapierbÃ¶rse zu Hamburg, Geregelter Markt in Bayerische BÃ¶rse MÃ¼nchen;