On the one hand, most sources agree that online tyre demand is booming as a result of the pandemic and its related lockdowns. However, on the other hand, such rapid growth has also led to increased competition online. One way of finding which tyre firms are getting ahead in the online space is to consider the race for pole-position in Google search results. Since Google is the by far the biggest search engine online holding a dominant 92.47 per cent global market share as of June 2021 (87.7 per cent in the UK specifically), getting your brand ahead of the competition in search results makes a big difference. And paid search advertising, known as pay-per-click (PPC) – is one way to do that. In order to get a handle on the tyre retail sector’s virtual performance in 2021, Tyres & Accessories worked with SEO marketing specialists Evolved who analysed the organic search and PPC performance of the top 23 UK-based etailers and concluded that online specialist Blackcircles is taking ground from bricks and mortar market leader Kwik Fit, amongst other things.
For the first time in its 15 year history, online retailer Delticom has reported negative net earnings. The German firm says it ended the first half of the 2014 financial year with a net loss of approximately €200,000; it says this minus result is primarily attributable to an accumulated, after tax loss of €8.0 million from Tirendo, the Berlin-based online tyre retailer Delticom acquired in September 2013. The perhaps understated comment from Delticom on 14 August was that “Tirendo’s performance in the first half of the year is significantly below planning, both in terms of revenues and earnings.”
Net income at online tyre retailer Delticom took a dive in the first quarter of 2014, despite a year-on-year rise in sales revenue. While the addition of Tirendo sales and an early start to the summer season drove revenues up 16.4 per cent to €94.3 million in the three months to 31 March 2014, the good news ended there. EBITDA declined 26.0 per cent to €2.4 million in the first quarter, and ppa-effect pushed EBIT down to €0.3 million, a year-on-year reduction of 88.4 per cent. EBIT margin was 0.3 per cent in the first quarter of 2014, as opposed to 3.1 per cent a year earlier. Net income shrank – to use the word Delticom applied in its 3-Month report – by 98.8 per cent, to €20,400.
Consolidated net income at online tyre dealer Delticom has decreased for the second consecutive year, falling 47.9 per cent year-on-year to €11.6 million for 2013. This is 67.8 per cent lower than the 15-year old company’s best ever net income of €36.0 million, which it achieved in 2011. Nevertheless, upon releasing its 2013 Annual Report the company defended this result by claiming its business model “has once again proven its resilience” and that Delticom ran a profitable business last year despite an “adverse” market environment.
Tirendo is raffling the chance for a meet and greet with four-time F1 world champion Sebastian Vettel. The face-to-face meeting is set to take place during a Formula 1 event in 2014. According to the company, it will offer the winner and one friend the unique opportunity to meet the professional racer and get to know him from a completely private side.
Following on from the news that Delticom AG purchased fast-growing online tyre retailer Tirendo on 17 September, Delticom executives have also revealed that company’s founders and main shareholders Rainer Binder and Andreas Pruefer also sold around 500,000 Delticom shares to a subsidiary of European Media Holding AG (EMH), which itself is a founding shareholder of Tirendo. In addition EMH was granted options to purchase up to a further 1.6 million shares. Apart from increasing the apparent combined value Delticom attributed to Tirendo, it is also likely to have consequential effects on market pricing.
Hanover, Germany-based Delticom AG agreed to purchase Tirendo Holding GmbH on 16 September. The leading European online tyre business will purchase all shares in the Berlin-based online tyre retailer and its subsidiaries. According to a statement issued by the companies, the purchase price, including acquired shareholder loans, amounts to roughly 50 million euros.