By Dean Seal
Trivago’s American depositary receipts rose after the company said it plans to distribute a special one-time dividend later this year.
The stock was up 17% at $1.39 in premarket trading. When the market closed on Friday, shares were down about 12% year-to-date.
The travel-booking platform said Tuesday morning that the dividend is expected to total EUR184 million, or about EUR0.53 a share, and will help the company optimize its capital structure.
Trivago disclosed the dividend while announcing a shift in its brand marketing strategy amid robust growth in the online travel sector.
The Düsseldorf-based company is intensifying its brand marketing investments, which is expected to cut into profitability for the year. Trivago said it no longer expects to exceed adjusted earnings before interest, taxes, depreciation and amortization of EUR70 million this year.
“Keeping trivago on top of travelers’ minds is crucial to achieve our goal of sustained, long-term growth,” Chief Executive Johannes Thomas said. “We’ll employ a performance-driven approach, strategically increasing investment in areas and markets that deliver the desired impact.”
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