On the Beach Group PLC AGM Trading Update (2370E)
February 08 2018 - 1:00AM
UK Regulatory
TIDMOTB
RNS Number : 2370E
On the Beach Group PLC
08 February 2018
8 February 2018
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 2018, in advance of its
Annual General Meeting to be held today.
The Group has continued to perform well in the first four months
of the financial year. The reduction in overall capacity in the
market following the Monarch failure led to significant year on
year ("YOY") seat price increases for winter departures. Although
other carriers have added incremental capacity, this is primarily
for departures from Easter 2018 onwards with the effect that summer
2018 seat prices have remained broadly flat YOY. These pricing
factors, together with a return of customer demand for destinations
in the Eastern Mediterranean, are helping to drive strong bookings
growth for summer 2018 departures and is more than offsetting any
weakness in the market for late winter departures.
Since the start of the new calendar year the Group has continued
to drive efficient share growth with UK revenue growth, after all
marketing costs, for the four months to 31 January 2018 of +23%.
This performance reflects the continued strength of the core
business combined with substantial growth of revenues from
Sunshine.co.uk. This has been achieved notwithstanding the
reinvestment of a significant proportion of the incremental
Sunshine.co.uk revenues into marketing activity.
The international sites in Sweden and Norway have continued to
show strong growth YOY and the Group will shortly launch its
international proposition, www.ebeach, into its third market,
Denmark.
The Group continues to increase its investment in talent and
technology while building its exclusive supply position and growing
awareness across all brands. The Board believes the full benefits
of these investments and the incremental marketing investment in
the Sunshine.co.uk brand will continue to flow through in the
remainder of this financial year.
The Group will report Interim Results for the six months to 31
March 2018 on 10 May 2018.
Simon Cooper, Chief Executive of On the Beach Group plc,
commented:
"The first four months of the new financial year has delivered
another solid period of growth for the On the Beach, Sunshine and
ebeach brands. Our strategy of investing in our brands, talent 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 third 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
With over 20% share of online sales in the short haul beach
holiday market, we are one of the UK's largest online beach holiday
retailers. We have significant opportunities for growth and a
long-term mission to become Europe's leading online retailer of
beach holidays. By using our innovative technology, low-cost base
and strong customer-value proposition to provide a structural
challenge to legacy tour operators and travel agents, we continue
our journey to disrupt the online retail of beach holidays. Our
model is customer-centric, asset light, profitable and cash
generative.
www.onthebeachgroupplc.com
Cautionary statement
This announcement may contain certain forward-looking statements
with respect to the financial condition, results, operations and
businesses of the Company. Forward looking statements are
sometimes, but not always, identified by their use of a date in the
future or such words as 'anticipates', 'aims', 'due', 'will',
'could', 'may', 'should', 'expects', 'believes', 'intends',
'plans', 'targets', 'goal' or 'estimates'. These forward-looking
statements involve risk and uncertainty because they relate to
events and depend on circumstances that may or may not occur in the
future. There are a number of factors that could cause actual
results or developments to differ materially from those expressed
or implied by these forward-looking statements, including factors
outside the Company's control. The forward-looking statements
reflect the knowledge and information available at the date of
preparation of this announcement Report and will not be updated
during the year. Nothing in this announcement should be construed
as a profit forecast
This information is provided by RNS
The company news service from the London Stock Exchange
END
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