Nustay initiates capitalization plans for further company development
Nustay A/S (“Nustay”) hereby confirms the company’s plans to raise further capital to cover the Company’s short and long-term capital needs. As communicated in the press release published on September 6, 2019, the Company has raised DKK 10 million through debt financing but has also initiated a process of raising additional capital in Q4 2019 to repay this outstanding debt, rebuild the Company’s cash-buffer and finance further growth.
Reference is also made to the background for the board’s decision to initiate a capitalization process in the press release published on August 13, 2019, which was caused by the challenges with the Company’s primary marketing integration and the decline suffered in cash flow which consumed the cash buffer. Nustay’s management is continuously focused on improving the Company’s commercial and operational model with the aim to achieve a positive cash-generation in 1st half of 2020 and be net profitable towards the end of 2020 as also previously communicated.
CEO Mathias Lundoe Nielsen comments:
“During Q4 2019, Nustay will release a new website and brand identity, including iOS and Android apps. Currently approx. 75% of all bookings on Nustay come from mobile devices, and the new app-marketing will support crucial KPI’s such as conversion rates.
Our business model is further developed and margins expected to improve when releasing a dedicated hotel distribution unit called Nustay PRO, which offers hotel rooms to business-to-business customers such as classic travel agencies and OTA’s. We are also releasing a series of new products for our business-to-consumer business, such as flight tickets, car rental, and airport transfers, which are expected to improve margins further. The car rental and airport transfers are expected to be released already here in Q4 2019 as part of the new website and flight tickets in Q1 2020.
During the last few months, our Google Hotels Ads marketing has further been developed. Additionally, we have been running test campaigns with TripAdvisor and are now ready for a global launch planned to take place in the beginning of Q1 2020. Test campaigns are expected to be launched on Kayak and Trivago shortly after. Here in the beginning of Q4 2019, our handled revenue is currently 12,3% higher when comparing to the same date interval in Q3 2019, and the net revenue is 17% higher. A sessional slowdown in December 2019 is expected with a January pickup and the marketing model still needs development.”.
For further information about Nustay, please contact:
Mathias Lundoe Nielsen, CEO & Founder, Nustay A/S
Telephone: +45 22 91 94 99
E-mail: mln@nustay.com
Website: www.nustay.com
This information is information that Nustay A/S is obliged to publish following the EU Market Abuse Regulation. The information was provided by the contact person above for publication on October 11th, 2019.
About Nustay
Nustay is a Danish company within the hotel booking market that offers its customers a new booking concept. Nustay has a vision of becoming the best and most disruptively innovative hotel booking platform in the world with Nustays innovative and advanced hotel booking platform which has proven its ability to handle customers all over the globe. Nustay is an Online Travel Agency that delivers personalized hotel deals for each registered user depending on the preferences of the user and the type of stay. Nustay differs itself from its competitors by combining the best and most important aspects of existing online booking – a large hotel inventory, a great booking experience and competitive prices.
