13 September 2023
On the Beach Group plc
("On the Beach", "OTB" or the "Group")
2023 Pre-Close Trading Update
On the Beach Group plc (LSE: OTB.L) today provides an update on trading for its financial year ending 30 September 2023 ("FY23"), in advance of announcing its preliminary results on 5 December 2023.
Summary
· Record TTV1 of c.£1.1bn, +26% year on year driven by growth in volumes and average booking values ("ABV")
· Group EBITDA in line with market expectations and Group adjusted PBT at the top end of the range of market expectations, benefitting from higher than anticipated interest income
· OTB segment marketing costs for the full year at 40% of revenue (FY22: 45%)
· The Group is debt free and cash generative, providing balance sheet flexibility
Trading Update
The Group will deliver record TTV and revenue in FY23. This performance has been underpinned by enhanced platform capabilities and a well-executed strategy across brand and proposition.
The Group expects Summer 23 passenger numbers to be 11% ahead of Summer 22, with Winter 23 currently 26% ahead of the prior year. Notwithstanding that it remains in its early stages, bookings for Summer 24 are also significantly ahead of the prior year.
The Group is successfully growing volumes and ABV in its core addressable market and strategic online expansion segments, and will deliver a c.70% increase in TTV for Long Haul bookings and a c.30% increase in Premium 5* TTV by the year-end.
1 Total transaction value ("TTV") of holidays booked in the period before cancellations and amendments.
Shaun Morton, Chief Executive of On the Beach, commented:
"We continue to leverage the benefits of the investments we have made in our proprietary technology platform, brand and proposition and I am pleased to see that this has driven growth in both the top and bottom lines during the second half of the year as planned. Alongside access to greater seat and bed capacity, this has resulted in our most successful summer, sending more passengers on their holidays than ever before. Following our strong second half performance we will exit FY23 with the momentum of a record forward order book and demonstrable progress in strategic expansion areas, which we are excited to build upon in FY24."
ENDS
For further information:
| On the Beach Group plc Shaun Morton, Chief Executive Officer Jon Wormald, Chief Financial Officer | via FTI Consulting |
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| FTI Consulting Alex Beagley Fiona Walker Sam Macpherson Rafaella de Freitas | Tel: +44 (0)20 3727 1000 |
About On the Beach
On the Beach Group plc is one of the UK's largest online beach holidays retailers, with significant opportunities for growth. Its innovative technology, low-cost base and strong customer-value proposition provides a structural challenge to legacy tour operators and online travel agents, as it continues disrupting the online retail of beach holidays. Its model is customer-centric, asset light, profitable and cash generative.
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