On the Beach profits rise despite Brexit disruption
On the Beach Group has increased half-year profits by 14% despite Brexit uncertainties and the collapse of Primera Air.
Sharelines
Cooper hails solid On the Beach performance despite Brexit and Primera collapse
The OTA saw adjusted pre-tax profits of £15.7 million in the six months to 31 March, an increase of £1.9 million year-on-year. Revenue rose 41% to £63.5 million.
The UK operation (On the Beach UK and Sunshine.co.uk) increased revenue 1% to £44.6 million and saw adjusted pre-tax earnings rise 10% to £18.4 million. International revenue fell 56% to £0.4 million.
On the Beach said: “Revenue was heavily impacted by the failure of Primera in early October 2018. This was offset by a 75% reduction in marketing spend.” The net result was a loss of £0.2 million.
On the Beach Group chief executive Simon Cooper said the first half had been a “solid performance”.
“This performance has been delivered against a soft background market, particularly in the important first calendar quarter, when uncertainties regarding Brexit impacted consumer appetite for booking holidays,” he said.
“Independent market data shows that a significant proportion of consumers deferred their holiday purchase in the run-up to the 29 March deadline and our understanding is that the background market has been trading down 10% year-on-year in 2019.”
The first half included the March launch of Classic Package Holidays, the agent-only booking portal, which incurred start-up costs of £500,000.
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