Preliminary Figures Show Strong Revenue Growth at Delticom

Leading European online tyre retailer, Germany’s Delticom AG, has delivered news of greatly increased 2007 financial year revenues. According to preliminary consolidated IFRS figures, year on year revenues have jumped by about 24 per cent, from 173 million euros in 2006 to 214 million euros last year. This figure is at the upper end of Delticom’s forecast (210 – 215 million euros). At the same time, EBIT of between 12.0 million and 12.5 million euros is anticipated for 2007, up from 10.2 million the previous year.

From this total revenue figure, eCommerce revenues totalled 194 million euros, an increase of 25 per cent. Revenues in Delticom’s wholesale division were up year-on-year from 18 million to 20 million euros. Delticom attributes what it views as strong growth in 2007 to the ongoing positive growth in business at its online shops, of which the company now has a total of more than 86 in 30 countries. More than 600,000 new customers were acquired in 2007, raising the total number of customers to more than 1.8 million. There has also been constant growth in the number of partner workshops: right now customers can have their tyres fitted in more than 20,000 workshops worldwide.

Delticom reports that winter tyre sales in its home market of Germany were not as strong as in previous years, a phenomenon in keeping with national trends. This was due to factors including the mild weather last winter and the artificial inflation of 2006 sales as a response to new statutory regulations. During 2007 international sales became comparatively more important for Delticom, the company notes. A key milestone in the company’s internationalisation strategy is the recently completed formation of Delticom North America Inc. in Portland, Oregon. The Delticom Group is thus further expanding its presence in the North American online tyre market, creating the foundations for long-term sustainable growth into the US market. “Forming our own subsidiary in North America puts us right where our American customers are,” commented Philip von Grolman, the Managing Board member responsible for the company’s North American business.

Rainer Binder, a member of Delticom AG’s Managing Board and co-CEO commented on the preliminary revenues: “Fiscal year 2007 was excellent for Delticom. Although developments in the German market were not particularly pleasing, we were still able to reach our targets for 2007 as a high-growth, internationally oriented company. And what’s most important: as the cost leader we were again able to combine growth with high margins.”

Delticom will publish its full 2007 financial statements on 26 March 2008.