trivago: shares fall below IPO price after warning.
(CercleFinance.com) - German-based hotel search platform warned on Wednesday that its 2017 earnings would be lower than in 2016, sending its shares down over 25% on the Nasdaq.
The Düsseldorf-based group said on Wednesday that it now expects annual revenue growth to be around 40% in 2017, with adjusted EBITDA to be lower than in 2016, but to remain "positive."
The group expects results for the remainder of the year to be softer than previously forecast, due to a further slowdown in revenue per qualified referral - i.e. commissions from hotels listed on its web sites.
Due to the speed of the slowdown, the firm has been unable to pull back planned television advertising expenditure in order to prevent overspending, it said.
Shares trivago were down 28.2% at 10.8 dollars, slipping to under its December IPO price of 11 dollars, in early trading today.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The Düsseldorf-based group said on Wednesday that it now expects annual revenue growth to be around 40% in 2017, with adjusted EBITDA to be lower than in 2016, but to remain "positive."
The group expects results for the remainder of the year to be softer than previously forecast, due to a further slowdown in revenue per qualified referral - i.e. commissions from hotels listed on its web sites.
Due to the speed of the slowdown, the firm has been unable to pull back planned television advertising expenditure in order to prevent overspending, it said.
Shares trivago were down 28.2% at 10.8 dollars, slipping to under its December IPO price of 11 dollars, in early trading today.
Copyright (c) 2017 CercleFinance.com. All rights reserved.