On the Beach Group PLC AGM Trading Update (7932V)
02 February 2017 - 6:00PM
UK Regulatory
TIDMOTB
RNS Number : 7932V
On the Beach Group PLC
02 February 2017
2 February 2017
On the Beach Group plc
("On the Beach" or the "Group")
AGM Trading Update
On the Beach Group plc (LSE: OTB.L), the UK's leading online
retailer for beach holidays, today issues the following trading
update for the four months to 31 January 2017, in advance of its
Annual General Meeting to be held today.
The Group has performed well in the first four months of the
financial year. The first quarter of our financial year (calendar
Q4) is historically the quietest trading period for the Group and
booking volumes were impacted by the timing of the low cost
carriers' seat release for spring/summer capacity which resulted in
a noticeable shortening of lead times. Since the start of the new
calendar year booking volumes and revenue growth have strengthened
and there has been a continuation of lower cost paid search
marketing. This has resulted in revenue growth, after all marketing
costs, for the 4 months to the end of January 2017 of +20% YOY.
Our growth in the period is also particularly pleasing given
that many of the Group's key hotel partners in the Western
Mediterranean are holding back capacity to sell in the late market.
This has led to an inevitable slowing of peak season sales to key
destinations such as Majorca, mainland Spain and the Algarve. This
trend should however lead to greater availability in these
destinations in the late market with an offsetting increase in
sales volumes. Trading in the period February to mid July 2016 was
also disrupted by the aggressive bidding and discounting of the Low
Cost Travel Group, prior to their failure, and as such, the Group's
YOY comparators will be significantly softer in the next 6
months.
The Group has continued to optimise its platform and search
technology, build its exclusive supply position and grow brand
awareness through a nationwide offline campaign and the full
benefits of these investments are expected to flow through in the
remainder of this financial year.
Following a successful trial and testing period, the Group has
now fully launched its international proposition, www.ebeach, into
its second market, Norway.
On the Beach continues to efficiently execute its strategy. The
Board believes that the Group is well positioned to generate strong
growth in the current financial year. The oversupply of seats into
the Western Mediterranean is presenting the Group with multiple
opportunities to leverage its scale and technological capability to
consolidate its market leading position over the coming months.
The Group will report Interim Results for the six months to 31
March 2017 on 11 May 2017.
Simon Cooper, Chief Executive of On the Beach Group plc,
commented:
"The first four months of the new financial year has delivered a
further solid period of growth for On the Beach. Our strategy of
investing in our brand, hotel supply and technology to drive growth
has delivered performance in line with the Board's expectations;
with consumers attracted to our wide range of value for money beach
holidays. Our second nationwide television advertising campaign
started on Christmas Day and has helped drive this strong
performance as our brand awareness continues to grow. The Board
remains confident in the Group's outlook and will continue to
evaluate opportunities to enhance its market share position."
For further information:
On the Beach Group plc c/o FTI Consulting
Simon Cooper, Chief Executive
Officer
Paul Meehan, Chief Financial
Officer
FTI Consulting Tel: +44 (0)20 3727
Jonathon Brill 1000
Alex Beagley
Fiona Walker
About On the Beach
On the Beach is one of the UK's largest online retailers of
beach holidays with a 20% share of the online short haul beach
holiday market. The Group has multiple opportunities to generate
further growth and has a vision to become Europe's leading online
retailer of beach holidays. On the Beach provides a significant
structural challenge to legacy tour operators and travel agents as
the Group continues its journey to disrupt the online retail of
beach holidays with its scalable, flexible, innovative technology,
combined with a strong customer value proposition and a low cost
base. The business model is customer-centric, asset light,
profitable and cash generative.
www.onthebeachgroupplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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