REG - On the Beach Group - 2023 Pre-Close Trading Update

On Beach groupAnnouncement

13/09/2023 07:00

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RNS Number : 2104M  On the Beach Group PLC  13 September 2023

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 TTV(1) 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                  via FTI Consulting

 Shaun Morton, Chief Executive Officer

 Jon Wormald, Chief Financial Officer

 FTI Consulting                          Tel: +44 (0)20 3727 1000

 Alex Beagley

 Fiona Walker

 Sam Macpherson

 Rafaella de Freitas

 

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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