ASMALLWORLD AG (SWX:ASWN) announces successful execution of First Class & More acquisition and raises guidance for 201805.10.2018
ASMALLWORLD AG / Key word(s): Investment/Takeover
ASMALLWORLD AG (SWX:ASWN) announces successful execution of First Class & More acquisition and raises guidance for 2018
ASMALLWORLD AG has successfully acquired 100% of the shares of First Class & More International GmbH (First Class & More), effective as of October 5, 2018. The company and its subsidiary will be fully consolidated going forward.
First Class & More, is a profitable business and is expected to generate over CHF 2.5m in free cash-flow in full-year 2018, a number expected to rise further in 2019. The acquisition thus accelerates ASMALLWORLD AG's path to profitability.
As a result of this transaction, ASMALLWORLD AG today raises its revenue guidance for 2018 from CHF 6.5-7.0M to CHF 7.5-8.0M. The number of paying members for the newly combined entity is expected to reach between 45'000 and 46'000 members by the end of this year.
Due to the first full-year consolidation of First Class & More in 2019, next year's revenue is now expected to grow beyond previously projected organic growth.
First Class & More's financials are currently restated to Swiss GAAP FER, the accounting standard of ASMALLWORLD AG and once the process is completed, a more comprehensive 2019 guidance will be provided.
Founded in 2009, First Class & More is a subscription-based luxury travel community operating mainly in the DACH region. It is the leading German-speaking insider portal for luxury travel and the use of airline and hotel loyalty programs. It has 60'000 subscribers, of which more than 10'000 have a paid annual subscription. The company offers three tiers of subscriptions: Gold (for EUR59/year), Platinum (for 199EUR/year) and Diamond (for EUR999/year). Each higher subscription level provides access to more expert knowledge and advisory plus exciting and rare opportunities to take advantage of extraordinary travel deals as well as access to unique optimization tools.
Beyond the acquisition of First Class & More, ASMALLWORLD AG is assessing additional acquisition targets to further accelerate its growth while enriching the core offering to its members.
Jan Luescher, CEO of ASMALLWORLD AG, comments: "We have successfully concluded our first acquisition as a listed company just six months after our listing on the Swiss Stock Exchange. This first M&A transaction perfectly complements our organic growth strategy and will generate substantial value for our shareholders. I look forward to realizing the synergy potential of the two companies and to support the international expansion of First Class & More, jointly with our new colleagues."
This press release and further information can be found at www.asmallworldag.com.
ASMALLWORLD, the world's leading lifestyle community, is a private social network that connects people with a shared passion for the good life.
Each year, ASMALLWORLD organises more than 1000 events around the world, where members can expand their private and professional networks. The ASMALLWORLD website and mobile apps offer members the opportunity to engage in discussions, obtain travel advice from the Travel Guides or other members, or meet other members whilst travelling the world. Members also enjoy exclusive privileges from international partners such as status upgrades, discounts and additional services.
Besides the global ASMALLWORLD community, Zurich-based ASMALLWORLD AG operates ASW Travel AG, which provides bespoke travel arrangements for its customers, as well as The World's Finest Clubs AG, which offers its members access to the most exclusive nightlife venues around the world.
End of ad hoc announcement
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|End of Announcement||EQS Group News Service|