Homes & Holiday AG back on growth track in the first half of 2019: Focus on core Balearic market and cost reductions lead to turnaround

- Real estate brokerage on the Balearic Islands +33 % to EUR 30.5 million
- Takeovers in holiday rentals pay off
- Operating result improved from EUR -2.2 million to EUR -1.1 million
- Further cost reduction in the second half of the year due to completed restructuring
- Target: Break-even in 2020

München/Palma de Mallorca, 02. September 2019. Homes & Holiday AG (ISIN: DE000A2GS5M9) returned to growth in its core Balearic market in the first half of 2019. According to preliminary figures, the specialist for holiday properties in Spain and city properties in Germany brokered properties on the Balearic Islands with a total value of around EUR 30.5 million in the first six months of the year. This is 33 percent more than in the same period last year. The franchise broker is thus consolidating its position in one of the most attractive real estate markets in Europe. As part of its strategic realignment, Homes & Holiday sold its own property shops to franchisees at the end of 2018. As a result, net sales in the brokerage business rose by 5 percent to EUR 700,000. The holiday rental segment recorded significant growth. Due to several takeovers last year, the Group rose to number two in the Balearic Islands with its booking portal This is beginning to pay off: In the first half of 2019, sales in the holiday rental segment rose from EUR 28,000 to EUR 300,000. On the earnings side, Homes & Holiday also achieved initial successes in the first half of 2019. The consolidated operating result (EBITDA) was EUR -1.1 million, compared with EUR -2.2 million in the previous year. A further reduction in costs is expected in the second half of the year. The corresponding measures have been implemented in recent months.

"After a difficult 2018, we are well positioned with our current franchise partners and new corporate structure to break even in the coming year and achieve sustainable profitable growth," says Joachim Semrau, founder and CEO of Homes & Holiday AG. "The real estate market on the Balearic Islands offers us ideal conditions. Every year, properties worth over EUR 4 billion change owners and more and more people discover the finca holiday for themselves. Not only in the summer months, but also from the beginning of spring to late autumn".

In addition to continued positive revenue growth in its core market, Homes & Holiday expects costs to be reduced in the second half of 2019 and earnings to improve.

Contact
Homes & Holiday AG // Ludwigstraße 8 // 80539 Munich //

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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.