Shares in On the Beach dropped 17% in morning trading (writing at 9.30am) after it reported a poor set of half-year results.
The online travel retailer reported a loss before tax of £3.2 million for the six months ended 31st March, compared with profit of £4.5m in the corresponding period last year.
Revenues were £52.2m, down £7.2m, despite a rise in booked total travel value from £611.7m to £626.2m. Adjusted EBITDA halved to £6.4m (H1 25: £12.8m).
However it saw record H1 booking volumes of 324,000, growing by 7% and significantly ahead of the market ‘despite significant industry headwinds’. Its monthly active app users grew 29% while it recently launched its app in ChatGPT and said further AI integrations are set to follow in H2.
It argued that the results ‘demonstrate the resilience of the model given widespread demand disruption from the conflict in the Middle East since 1st March’.
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“We entered the new financial year with strong momentum as our broadened offer continued to attract new and existing customers, delivering TTV growth of 2% and bookings volumes growth of 7%, significantly ahead of the market,” said CEO Shaun Morton.
“However, whilst the group has limited exposure to destinations in the Middle East, the ongoing conflict has impacted consumer demand since 1st March and led the group to withdraw its guidance, as announced in the AGM trading update.
“H2 booking activity has stabilised to a more consistent trading pattern and bookings over the last six weeks are up 9% as we approach the key summer departure months.
“As a result, we have today reinstated guidance and the board is confident in delivering FY26 adjusted PBT in the range of £18-25m.”