Delticom Reports 50% Online Revenue Increase in 1Q 2010
Delticom AG has published preliminary figures for the first quarter of 2010, which provide further evidence for the increased influence of the Internet on the tyre business. According to a preliminary results statement published 20 April, Delticom achieved first quarter 2010 revenues of 74 million euros (£64.5 million; $99.44 million), up 45 per cent compared with the 51.0 million euros reported in the same period in 2009. However, e-commerce revenues for the first quarter great faster still, totalling 70 million euros (£61 million; $94.08 million), up 50 per cent from 46.7 million euros in the first quarter of last year.
Pointing out that the first quarter of the year is traditionally the weakest period in the tyre trade, Delticom said the long winter with its associated strong winter tyre sales lay behind the strong figures. According to the company, this provided Delticom with “continued good sales opportunities for winter tyres at the beginning of the year.” The company also says it is “highly satisfied with the onset of this year’s summer tyre business.” Delticom CFO Frank Schuhardt, commented: “For both winter and summer tyres our revenues in the first quarter markedly exceed our expectations.”
In addition Delticom reports that it is benefiting from “the rising trend towards e-Commerce.” According to a current Forsa survey of German drivers commissioned by Delticom AG, some 40 per cent of the respondents in the age bracket between 18 and 39 years could well envisage buying their tyres on the Internet in future.
Analysts: Delticom first quarter results ‘very strong’
Analysts responded very positively to Delticom’s results, with Deutsche Bank analysts describing the figures as “very strong” and “significantly above Deutsche Bank and consensus expectations.” The analysts also suggested Delticom’s full year predictions were somewhat conservative: “We believe these preliminary first quarter results support our view of above 10 per cent topline growth in full year 2010 results.” The analysts estimate that this means a roughly 12 per cent growth across the year, including 20 per cent in the first half and a relatively flat second half.