Argentine travel platform Despegar expects revenue growth to top 20% in 2025
27/11/2024 13:52
By Eliana Raszewski
BUENOS AIRES, Nov 27 (Reuters) - Argentine travel
company Despegar expects more than 20% growth in bookings and
revenue in 2025, boosted by improvements in Argentina, regional
currency stabilization, and expansion into Europe and the U.S.,
CEO Damian Scokin told Reuters.
WHY IT'S IMPORTANT
The company, which operates in 19 countries, is one of Latin
America's largest online tourism platforms, and has been
affected by high inflation in Argentina and currency
depreciation against the U.S. dollar in key markets Brazil and
Mexico.
KEY QUOTES
Scokin called 2024 challenging due to Argentina's recession
and high inflation, together with weaker regional exchange rates
as Brazil's and Mexico's currencies fell 16.7% and 18.5%
respectively against the dollar.
"These are huge depreciations for large economies, and that
makes travel abroad more expensive in those countries, and
affects demand," Scokin told Reuters on Tuesday.
"For 2025 we set a growth target higher than 20%, which
includes the effect we expect from some normalization in
Argentina and exchange rates stabilizing," Scokin said, adding
the target foresees growth outside Latin America.
Scokin said the company is aiming to expand to the U.S. and
Europe by partnering with businesses and banks to offer trips
through loyalty programs.
BY THE NUMBERS
New York-listed Despegar expects revenues of $760 million
this year, with adjusted earnings before interest, taxes,
depreciation and amortization at $170 million.
The company reported third-quarter revenue of $194 million,
up 53% year-on-year, while adjusted EBITDA nearly doubled to a
record $48 million.
WHAT'S NEXT
Despegar set a growth target of 20% annually over the next
five years. The company's positive results will open up
financing opportunities and more investment, Scokin said.
(Reporting by Eliana Raszewski, additional reporting by Kylie
Madry; Writing by Aida Pelaez-Fernandez; Editing by Jan Harvey)
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