13th May 2025 10:37
(Alliance News) - On the Beach Group PLC on Tuesday said demand for holidays remains strong as it reported a double-digit jump in half-year profit.
The Manchester, England-based online holidays retailer said pretax profit rose 18% to GBP3.3 million in the six months to March 31 from GBP2.8 million a year prior.
Adjusted pretax profit increased 23% to GBP7.6 million from GBP6.2 million.
Revenue increased 7.2% to GBP64.2 million from GBP59.9 million while total transaction value of holidays booked in the period grew 13% to GBP640.7 million from GBP568.7 million.
"Demand for holidays remains strong as our customers continue to prioritise travel," Chief Executive Shaun Morton said.
Despite the optimism, shares in On The Beach were 4.1% lower at 259.00 pence each in London on Tuesday.
Growth in TTV was driven by booking volumes rising 11%, an increase the company said is "significantly ahead of the package holiday market".
On The Beach said market seat supply remains strong heading into the summer with over 70 million seats from UK departure points to European destinations, including an additional 5% airline capacity to beach leisure destinations year-on-year and a further 3% to all European destinations.
Quarterly year-to-date booking momentum has been building, the company noted, with volumes up 7% in the first quarter, 15% in the second quarter and up 18% in the third quarter to date.
Summer 2025 forward order TTV is up 14% so far, and on an "upward trajectory" since the 10% reported at the last trading update in February.
As a result, On The Beach said it expects a record year and is confident in delivering full-year adjusted pretax profit in line with the GBP38.2 million consensus.
In the financial year that ended September 2024, the company reported adjusted pretax profit of GBP31.0 million, so the financial 2025 result would be up 23%.
On The Beach said it is on track to deliver its medium-term ambition of GBP2.5 billion TTV, GBP100 million earnings before interest, taxes, depreciation and amortisation and GBP85 million pretax profit.
CEO Morton added: "Our trading momentum, coupled with the continued execution of our strategy, means we are well placed to deliver our biggest summer to date and remain on track with our medium term ambition."
The dividend was increased 11% to 1.0 pence per share from 0.9p.
By Jeremy Cutler, Alliance News reporter
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