On the Beach Group Posts Record TTV in FY25, Eyes Further Growth

On the Beach Group plc (LON: OTB) has released its FY25 results, showcasing a year of record-breaking performance.

The online travel agent's strategic focus on beach holidays and city breaks continues to resonate with consumers, driving significant revenue and profit growth.

The company reported a record Total Transaction Value (TTV) for the fourth consecutive year, climbing 11% to £1.25 billion. Revenue also saw a healthy increase, rising 6% to £121.4 million.

These figures underscore On the Beach’s ability to capture a larger share of the holiday market.

Profitability improved significantly, with the Adjusted EBITDA margin expanding by 150 basis points to 33.2%. This translated into a 20% increase in Adjusted profit before tax, reaching £35.0 million. Adjusted EPS also jumped an impressive 45% to 19.0p.

The Group maintains a robust financial position, holding £91.7 million in cash. This provides a solid foundation for future investments and strategic initiatives.

The company strengthened its financial flexibility by completing a refinancing with Lloyds, Natwest, and HSBC, securing a larger facility with improved pricing to support medium-term expansion and shareholder returns.

On the Beach is rewarding its shareholders with a final dividend of 3.0p per share, bringing the full-year dividend to 4.0p per share – a 33% increase.

This represents 25% of net earnings, aligning with the company's capital allocation policy. Furthermore, On the Beach has actively returned capital to shareholders through share buybacks, repurchasing 22.5 million shares for £50 million in the last 12 months, representing 14% of the share capital.

Driver Breakdown

• Strategic Pillars: Focus on stickiness, choice, peace of mind, and scale/automation, leveraging the upgraded technology platform.
• Volume Growth: Summer '25 bookings up 13% YOY, significantly outpacing the broader package holiday market.
• Product Expansion: Successful launch into the Republic of Ireland and expansion of city break offerings, contributing 8% of FY25 booking mix.

AskTraders Takeaway:

The strong FY25 results and positive outlook are likely to fuel continued investor confidence in On the Beach. The company's focus on technology and strategic expansion positions it well for future growth.

CEO Shaun Morton commented, “I am pleased to report another strong performance which marks our fourth consecutive year of growth…Demand for On the Beach holidays remains strong and, despite the broader consumer environment, booking trends indicate that consumers will continue to protect their holiday.”

Looking ahead, On the Beach anticipates continued growth in FY26, with Adjusted PBT expected to be in the range of £39 million to £43 million, aligning with market expectations.

The company's medium-term ambition includes achieving a TTV of £2.5 billion, EBITDA of £100 million, Adjusted PBT of £85 million, and EPS of 38.7p. The company's winter bookings are looking strong, already 15% ahead of last year. Summer '26 bookings are also showing good momentum.