Interim report January 1, 2014 – March 31, 2014

CONDENSED FINANCIAL OVERVIEW (JANUARY–MARCH 2014)

Financial information in the interim report refers, unless otherwise stated, to the Etraveli group. The comparative figures (in parentheses) are pro forma and show the first quarter 2013 as if European Travel Interactive Group Holding AB was consolidated as of January 1, 2013. For definitions, see page 11.

• Revenue amounted to SEK 158.1 million (150.3), an increase of 5% compared to the previous year.
• Net revenue amounted to SEK 135.3 million (132.4), an increase of 2% compared to the previous year.
• EBITDA amounted to SEK 28.1 million (45), with an EBITDA margin of 21% (34).
• Operating profit amounted to SEK 9.9 million (26.7).
• Net profit amounted to SEK 0.7 million (0.1).

SIGNIFICANT EVENTS DURING and After THE END OF THE quarter

• Etraveli acquired Svenska Resenätverket AB, including the meta-search engine Flygresor.se, further strengthening the Group’s online offering. The acquisition was consolidated as of January 2014.
• A new management team was appointed during the quarter. Mathias Hedlund took over as the new CEO, while outgoing CEO Ralph Axelson instead became Deputy CEO with a focus on strategic initiatives. A new Chief Sales Officer reinforced management further in April.
• Etraveli introduced its services in five new European markets: France, Italy, Spain, the UK and Switzerland. The launch, implemented through the established brand Gotogate, is an element in the Company’s expansion plans. Since then, the company has continued the expansion with a number of test-launches and is currently present in 25 European markets.

CEO comment

As announced in the report for the fourth quarter 2013, the year started weakly as the Group’s earnings declined during the first quarter compared to the previous year. This was mainly due to a less favourable channel mix during the quarter and an extraordinary marketing campaign, though also to a slower pace in our internal improvement work at the end of 2013, which impacted the first two months of the year. After taking a number of measures, we have seen a clear, consistent improvement in revenue and operating profit in March, April and the beginning of May. At the same time we continue to expand geographically and are currently present in 25 European markets – an effort in its early stages, but which has started promisingly.

Since the beginning of the year Svenska Resenätverket and flygresor.se are also part of Etraveli. The business, which is performing well with rising revenue and increased operating profit year-over-year, is reported together with other operations in the Nordics segment.

Mathias Hedlund, CEO

Mathias Hedlund, CEO
Mobil: 46 706 66 37 58 , mathias.hedlund@etraveli.com

Johan Waxberg, CFO
Mobil: 46 701 48 72 72, johan.waxberg@etraveli.com

About Etraveli

Etraveli is the leading Nordic online travel agent (OTA) with a wide range of airline tickets, hotel accommodation and other travel related services. The company operates in 25 countries through brands such as Supersaver/Supersavertravel, Gotogate, Travelstart and the meta-search services Flygresor.se and Charter.se in Sweden.

Etraveli is one of the five largest aircentric online travel agents in Europe, and in 2013 it intermediated air tickets and related services to an amount exceeding SEK 7 billion, with revenue of more than SEK 500 million. The company is headquartered in Uppsala, Sweden and is owned by the private equity fund Segulah IV, LP and senior management.

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