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.
Mallorca will remain a popular hotspot for international investors in 2019.
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.
No.2 in Mallorca
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 www.portaholiday.com. 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.
Cost cutting
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