On the Beach forecasts profit jump as summer travel rebounds
On the Beach forecasts profit jump as summer travel rebounds Sept 24 (Reuters) - On the Beach OTB.L on Thursday forecast profit growth of up to 55% in fiscal 2027, as the British package holiday group pointed to strong booking momentum following a summer recovery from the hit to travel demand caused by the Iran war.
Here are some more details:
On the Beach said its bookings rose 9% for the fiscal year ended September 30, ahead of the broader travel market, and has continued into fiscal 2027, rising 17% over the last eight weeks.
The Iran war, and the ensuing spike in oil prices and costs, had caused the company's customers to pull back on trips to destinations near the conflict zone.
The group has been expanding its package offering and investing in technology, helping it boost its market share and bookings from repeat customers jump 18%.
Bookings over the key summer season also grew 4%, rebounding from the slow down seen from travellers booking holidays closer to departure.
Shares of the FTSE small-cap .FTSC company rose above 7% in early trading.
For the fiscal year ending September 2027, it expects pre-tax profit of between £28 to £35 million ($37.09 to $46.36 million), implying a 25-55% growth from prior year.
Adjusted pre-tax profit for fiscal 2026 is expected to be between £22 million to £23 million, in the upper half of its prior guidance of £18 million-£25 million.
($1 = 0.7549 pounds)
(Reporting by Anushka Chourasia in Bengaluru; Editing by Nivedita Bhattacharjee)