trivago returns to profitability for third quarter

trivago returns to profitability for third quarter

trivago returned to profitability in the third quarter as it slashed adverting spending.

The global hotel search platform reported net income for the quarter of €10.1 million, compared to a net loss of €7.7 million over the same period of 2017.

However, the net loss for the nine months ended September 30th this year was €32.5 million, compared to net loss of €3.5 million for the same period last year.

Rolf Schrömgens, chief executive of trivago, said: “This quarter we continued to focus on our core principles and what has made us successful by optimizing our marketing, improving our traffic quality and putting our users at the centre of the experience. 

“We believe we’ve done just that.”

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Adjusted EBITDA for the quarter was €26.6 million, compared to an adjusted EBITDA loss of €7.1 million in the third quarter of 2017.

For the nine months ended September 30th adjusted EBITDA was a loss of €13 million, compared to adjusted EBITDA of €15.3 million for the same period in 2017.

Axel Hefer, chief financial officer at trivago, added “Our aim was to return to profitability in a sustainable way by reducing inefficiencies and getting the business back on track.

“We believe we are now well-positioned moving forward and have adjusted our guidance to reflect our improved outlook.”

Incorporated in 2005 in Düsseldorf, Germany, trivago allows travellers to make informed decisions by personalising their hotel search and providing them access to a deep supply of hotel information and prices.

Total revenue for the third quarter decreased to €253.7 million, representing a decline of 12 per cent year-over-year, compared to €287.9 million in the same period in 2017.

Total revenue decreased to €748 million in the nine months ended September 30th, compared to €854 million for the same period in 2017, representing a 12 per cent decline period-over-period.