On The Beach reiterates full-year guidance on strong trading

26th Jan 2024 09:20

(Sharecast News) - On The Beach Group said it was on track for a bumper year on Friday, despite the cost of living crisis, as customers prioritised holidays.

Updating on trading, the online travel agent said the total transaction value (TTV) of holidays sold in the four months to 24 January was 27% ahead of the same period a year previously. In addition, winter 2023 TTV was up 34% year-on-year.

As a result, the firm now expects summer 2024 to be "significantly ahead" of summer 2023, its best to date, with full-year profits on track to meet expectations.

Shaun Morton, chief executive, said: "The momentum we experienced throughout last year has continued into this new financial year, with significant TTV growth across our core and expansion areas.

"We believe this is due to a combination of realising our investments across our proprietary platform, brand and customer proposition, and consumers continuing to prioritise holidays, viewing it as non-discretionary expenditure."

As at 0915 GMT, shares in On The Beach were up 2% at 167.4p.

Katie Cousins, analyst at Shore Capital, said: "We forecast revenue growth of 8% for the 2024 full-year with adjusted EBITDA margin improving from 18.3% in the 2023 full-year to 20.2%.

"The momentum experienced so far in the 2024 full year underpins our forecast and positive outlook for the group."

Shore Capital has a 'buy' rating on the beach holiday specialist.