Last checked at 5 Feb 2016 07:00
5 February 2016
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 2016, 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. Our ongoing strategy of investment in technology and directly sourcing supply, combined with our increased investment in both online and offline marketing, has delivered strong growth in bookings and revenues.
On the Beach's agile business model allowed the Group to successfully react to rapid changes in consumer demand, which were more prevalent than usual during this four month period. Compared to previous years and driven by recent acts of terrorism, the business responded well to significant volatility in traffic, as well as stronger demand for holidays in the Western Mediterranean which offset weaker demand for Egypt and the Eastern Mediterranean.
UK revenue increased 26% year-on-year, supported by enhanced personalisation across devices and our industry leading low deposit schemes. Daily unique visitors to site increased by 18.9% year-on-year, and has been delivered alongside an overall reduction in the cost per unique visitor. Mobile visitors reached a record 67% of traffic, an increase of 31% year-on-year
The Group's international proposition, www.ebeach.se, which is live in Sweden, is continuing to make progress and we are currently testing the service in Norway.
The Group will report Interim Results for the six months to 31 March 2016 on 19 May 2016.
Simon Cooper, Chief Executive of On the Beach Group plc, commented:
"The first four months of the new financial year has delivered a solid period of growth for On the Beach. Our strategy of investing in marketing, hotel supply and technology to drive growth has delivered an increase in revenue in line with the Board's expectations; with consumers attracted to our wide range of value for money beach holidays.
"On the Beach continues to efficiently execute its strategy. The Board believes that the Group is well positioned to continue generating attractive levels of growth and therefore remains confident in meeting management's full year expectations."
For further information:
On the Beach Group plc Simon Cooper, Chief Executive Officer Wendy Parry, Chief Financial Officer
| c/o FTI Consulting |
FTI Consulting Jonathon Brill Alex Beagley Tom Hufton | Tel: +44 (0)20 3727 1000 |
About On the Beach
On the Beach is one of the UK's largest online retailers of beach holidays with a 17% share of the online short haul beach holiday market. The Group has a large opportunity 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