Trivago reports Q1 profit of €21M but excludes recent €30M fine

Trivago announces adjusted EBITDA of 21.1 million euros in the first quarter of this year – but this figure does not take into account the massive fine imposed on the German metasearch company less than two weeks ago.

On April 22, the The Australian Federal Court condemned Trivago to pay a fine of €30.2 million for making misleading statements about hotel room rates online and in television advertising. The court found that Trivago purported to help users identify the best rates for a given hotel when, in fact, it was promoting the rooms of its paying advertisers.

In a statement accompanying its first quarter financial results, Trivago said: “The Australian Federal Court’s decision had a material adverse impact on our operating expenses in the first quarter of 2022, resulting in a negative impact on the operating expenses of €21.1 million resulting in a net loss of €10.7 million Due to the size and unusual nature of the accrual related to the Australian Federal Court judgment and its distorting effect on understanding our underlying business developments, we have decided to exclude it when calculating Adjusted EBITDA.

First quarter total revenue increased by 166% to €101.6 million, compared to only €38.2 million in the same period of 2021, driven by the recovery in demand in Europe and in the Americas.

Sponsorship revenue grew the most in Europe – up 358% year-on-year to €43.5 million. In the Americas, listing revenue increased by 139%, to €43.7 million, and in the rest of the world, it increased by 35%. Trivago says the increase is due to an increase in qualified referrals and revenue per qualified referral across all segments.

Total qualified referrals increased 62% year-over-year due to increased traffic volumes as COVID restrictions were eased.

“The conflict in Ukraine negatively impacted traffic volumes in developed Europe and global reach, particularly in Central and Eastern Europe, but was more than offset by the recovery in travel demand,” indicates the company.

Consolidated revenue per qualified recommendation increased by 68% compared to the first quarter of 2021. Trivago says this is due to a “significant” increase in bids from most of its advertisers.

The company says that with most COVID restrictions being phased out in the second quarter, it expects to see further improvement in its measures in the coming months.

“Going forward, we plan to significantly increase our marketing investments in our core markets in Q2 2022, while closely monitoring overall marketing effectiveness,” it says.

As of March 31, Trivago says its market has more than five million hotels and other types of accommodation – including more than 3.8 million vacation rental and apartment units – in more than 190 countries. .