On The Beach reiterates full-year guidance on strong trading
On The Beach Group
256.50p
16:35 28/01/25
On The Beach Group said it was on track for a bumper year on Friday, despite the cost of living crisis, as customers prioritised holidays.
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Updating on trading, the online travel agent said the total transaction value (TTV) of holidays sold in the four months to 24 January was 27% ahead of the same period a year previously. In addition, winter 2023 TTV was up 34% year-on-year.
As a result, the firm now expects summer 2024 to be "significantly ahead" of summer 2023, its best to date, with full-year profits on track to meet expectations.
Shaun Morton, chief executive, said: "The momentum we experienced throughout last year has continued into this new financial year, with significant TTV growth across our core and expansion areas.
"We believe this is due to a combination of realising our investments across our proprietary platform, brand and customer proposition, and consumers continuing to prioritise holidays, viewing it as non-discretionary expenditure."
As at 0915 GMT, shares in On The Beach were up 2% at 167.4p.
Katie Cousins, analyst at Shore Capital, said: "We forecast revenue growth of 8% for the 2024 full-year with adjusted EBITDA margin improving from 18.3% in the 2023 full-year to 20.2%.
"The momentum experienced so far in the 2024 full year underpins our forecast and positive outlook for the group."
Shore Capital has a ‘buy’ rating on the beach holiday specialist.