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Highlights

  • Double-Digit Growth: Booked TTV up 13% and booking volumes up 11%, significantly outpacing the broader market.

  • Profit Surge: Adjusted profit before tax increased 23% to £7.6m despite strategic investment in new markets.

  • Market Expansion: Brand launched in Republic of Ireland; 130 cities now live, doubling addressable market size.

Online holiday retailer On the Beach Group plc (LSE:OTB) has reported significant interim results for the six months ending 31 March 2025 (H1 FY25), delivering higher revenue and profit growth alongside notable strategic progress. The Group’s performance has outstripped broader market trends, reaffirming its ambition to become a market leader in the package holiday sector.

Total Transaction Value (TTV) rose 13% year-on-year, driven by an 11% increase in booking volumes, outperforming the package holiday market. The Group’s strategic positioning and product resonance with UK consumers were key contributors to this momentum.

Adjusted EBITDA rose 19%, reflecting improvements in margins and operational leverage. At the bottom line, adjusted profit before tax increased 23% to £7.6 million, up from £6.2 million in H1 2024. This growth came despite a net £1.5 million investment in marketing efforts to launch the brand in the Republic of Ireland.

On the Beach further enhanced its balance sheet by reducing net debt by £18 million year-on-year, even after returning approximately £30 million to shareholders via share buybacks and dividends. In line with its capital allocation policy, the company declared an interim dividend of 1.0p per share, an 11% increase compared to H1 FY24.

Strategic Expansion & Technology Investment

Significant strides have been made in market expansion. The brand now operates in 130 Short Haul and Long Haul cities, and has formally entered the Republic of Ireland, doubling the size of its addressable market. These advancements were enabled by upgrades to the company’s technology platform, which has not only improved booking flexibility but also embedded personalised perks into the mobile app, enhancing customer engagement and retention.

Seat capacity across the UK to European destinations has grown by 5% year-on-year, with over 70 million seats available. On the Beach’s volume growth of 11% in H1 indicates it is gaining market share even as capacity expands.

Outlook: Momentum Building for Record FY25

Booking momentum has been building through the year, with volume growth accelerating from +7% in Q1, to +15% in Q2, and currently at +18% in Q3 to date. Forward orders for Summer 2025 are up 14%, an improvement from the 10% reported in the February trading update.

The early contribution from newly entered markets and the continued scaling of its tech-enabled model position the Group for another record year. The Board remains confident in meeting full-year guidance, with FY25 adjusted profit before tax expected to align with market consensus of £38.2 million.

Looking further ahead, On the Beach continues to target £2.5 billion in TTV, £100 million in EBITDA, and £85 million in PBT in the medium term.