On the Beach Group (OTB) H2 2024 earnings summary

Executive summary

• Sales and TTV reached £1.2 billion, up 15% year-over-year, with bookings up 13% and record summer volumes.

• Adjusted profit before tax rose 25% to £31 million; reported PBT increased 84% to £26.5 million, despite £3 million Ryanair disruption costs.

• Ended the year with £96 million in cash, excluding £140 million in trust; final dividend of 2.1p per share and buyback of up to £25 million announced.

• Signed a transformational partnership agreement with Ryanair, resolving litigation and improving operational efficiency.

• Expanded offering to include city breaks and launched sales from Ireland.

Financial highlights

• Statutory revenue grew 14% year-over-year to £128.2 million; adjusted revenue up 9% to £123.4 million, reflecting a refund settlement with Ryanair.

• Adjusted EBITDA grew 18% to £38 million, including £1.7 million from B2B operations; EBITDA margin improved by 3.5 percentage points after adjusting for Ryanair-related costs.

• B2C adjusted EBITDA margin improved to 31.7%, up 1.7pts year-over-year.

• Group headcount reduced by 14% due to B2B changes and automation.

• Cash position increased by £20.4 million to £96.2 million; trust balance up £30.9 million to £139.5 million.

Outlook and guidance

• Bookings up 15% and TTV up 14% year-to-date; winter 2025 bookings up 25%.

• Board confident in delivering FY 2025 adjusted PBT of £37.9 million, in line with consensus.

• Medium-term ambition to double sales to £2.5 billion and achieve £85 million adjusted PBT.

• Forward order book at record levels; Summer 2025 expected to be significantly ahead of Summer 2024.