REG - On the Beach Group - AGM Trading Update

On Beach groupAnnouncement

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RNS Number : 3112W  On the Beach Group PLC  12 March 2026

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018.

 

FOR IMMEDIATE RELEASE

 

12 March 2026

 

On the Beach Group plc

("On the Beach" or the "Group")

 

AGM Trading Update and Notice of Results

 

On the Beach issues the following trading update, in advance of its Annual
General Meeting to be held at 11:00am GMT today.

 

Performance from 1 October 2025 to 28 February 2026

 

Following another record year in FY25, momentum has continued into FY26, with:

 

·      FY26 bookings: +10%(1) and bookings from repeat customers +19%

·      Q1 FY26: travelled volumes +14%

·      Q2 FY26: travelled / departure volumes +34%.

 

The investments made in the Group's app functionality have resonated strongly
with customers, resulting in a 58% increase in bookings made directly through
the app across the period, representing 38% of total bookings. The Group's AI
strategy continues to progress well, through integrations that connect its
inventory to all major AI platforms. OTB recently submitted its app to
ChatGPT, opening a new distribution channel and demonstrating the Group's
technology readiness for an AI-first world.

 

Investment in technology has also enabled rapid expansion into City packages
since launch in Q4 2024. On the Beach is currently taking bookings to 180+
City destinations and has more than doubled booking volumes year on year
("YoY"). International expansion through the sale of package holidays from the
Republic of Ireland is progressing to plan and is also experiencing
significant growth. The Group launched its Cruise offer early in FY26 and is
well positioned to take share in this large, resilient, high growth market.

 

As the Group has demonstrated in prior years, OTB's low cost and flexible
operating model is able to react to changes in the nature and timing of
holiday booking demand. The later booking pattern experienced across the
industry in FY25 has been more pronounced in FY26 and, as a result, bookings
with less than 90-day lead times have been particularly strong, with YoY
volume growth +28%.

 

Current trading from 1 March 2026

 

Whilst the Group has limited exposure to destinations in the Middle East, it
has experienced a significant slowdown in demand following the onset of
conflict in the region, particularly to destinations such as Turkey, Greece,
Cyprus and Egypt. The timing of when the conflict will end and the shape of
recovery in demand to these destinations are unknown. Both will impact Group
profitability and as a result the Group is temporarily suspending its guidance
of £39m to £43m Adj. PBT for the full year.

 

Despite the volatile environment, the Company continues to trade profitably
and generate cash because of its asset light model with significantly lower
fixed costs, commitments and exposure to increases in variable costs versus
the asset heavy tour operators. The Board remains confident in the delivery of
the Group's medium-term ambition of £2.5bn TTV, £100m EBITDA, £85m PBT and
38.7p EPS.

 

The Group will announce its Interim Results for the six months ending 31 March
2026 on 12 May 2026.

 

(1) Based on holidays sold during the period from 1 October 2025 up to and
including 28 February 2026, before cancellations and amendments.

 

Shaun Morton, Chief Executive of On the Beach Group plc, commented:

 

"Momentum has been building since we entered 2026, recording our highest ever
volume trading day on 1(st) February and a 34% increase in Q2 travelled /
departed volumes. Our customer loyalty continues to grow with repeat customers
up 19% in the period. The advancements in both our proposition and app
functionality are enabling customers to search great value holidays, be that
in a city, on a beach or on a cruise ship, and app bookings have increased 58%
as a result.

 

Following the onset of the conflict in the Middle East, our operational teams
have been working round the clock to support directly impacted customers in
resort and to enable a return home as soon as possible.

 

I am confident that On the Beach's enhanced strategy to scale into new
markets, underpinned by its asset light operating model with no committed
inventory to fill, remains a key competitive advantage."

 

 

ENDS

 

For further information:

 

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

 Alex Beagley      onthebeach@fticonsulting.com

 Harriet Jackson

 Harleena Chana

 

About On the Beach

 

On the Beach Group plc is one of the UK's largest online package holiday
specialists. We offer choice, value, flexibility and financial protection,
powered by our proprietary technology platform.

 

With an asset-light, cash-generative model, we drive customer acquisition and
loyalty through scalable technology, automation and operational efficiency,
enabling us to grow profitably while helping more people holiday better and
more often.

 

Renowned for beach package holidays, we have leveraged our expertise,
technology and strong supplier relationships to broaden our addressable
market, expanding into city breaks and cruise holidays, and offering our full
range of holidays to customers in the Republic of Ireland.

 

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