On The Beach Group Plc · LSE:OTB
On The Beach — H1 2023 Earnings Presentation
18 slides from On The Beach's earnings presentation, May 16, 2023
Slide 1: H1 23 Results Presentation
H1 23 RESULTS PRESENTATION 16 May 2023
Slide 2: Agenda and Cautionary Statement
AGENDA H1 23 Financial Performance CAUTIONARY STATEMENT Shaun Morton - CFO This presentation 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
Slide 3: H1 23 Financial Performance
Shaun Morton Chief Financial Officer H1 23 Financial Performance
Slide 4: H1 23 Overview
H1 23 Overview ➢ The Group continues to expand, with strong momentum across core and strategic expansion areas, generating booked TTV +28% in H1 23 versus H1 22 ➢ The premium segment continues to perform strongly, with growth in both volume and booking values. Booked TTV for 5* holidays was +17% YoY
Slide 5: Group Booked TTV +28% YoY
Group Booked TTV +28% YoY Group Booked TTV £m YTD 30th April TTV +25% YoY ➢ Group Booked TTV H1 23, up 28% YoY ➢ TTV growth across core and all expansion areas ― Particular strength in late bookings and very long lead time ― Family bookings in peak suppressed by cost of living pressures ➢ Healthy gr
Slide 6: Profit and Loss Account – OTB Segment
Profit and Loss Account – OTB Segment H1 23 H1 22 Change ➢ Adjusted Revenue of £48.5m, +32% YoY £m £m % Bookings '000 240.3 207.6 16% ➢ Total marketing costs of £25.9m Booked TTV £'m 445.8 342.8 30% ➢ Offline marketing costs of £13.4m front loaded into H1 to capitalise on the peak bookings period H1
Slide 7: Profit and Loss Account – B2B segments
Profit and Loss Account – B2B segments CCH B2B Overview H1 23 H1 22 Change £m £m % ➢ B2B booked TTV +11% YoY Bookings '000 4.9 4.2 17% Booked TTV £'m 32.9 27.8 18% ➢ New CEO in situ to drive continued growth £m £m % Revenue 22.6 13.2 71% Classic Collection Holidays (CCH) Gross Profit 2.4 1.2 Gross P
Slide 8: Profit and Loss Account – Group
Profit and Loss Account – Group H1 23 H1 22 Change % ➢ Bookings +15% YOY Bookings '000 252.7 219.0 15% ➢ Booked TTV +28% YOY Booked TTV £'m 495.0 385.8 28% ➢ Adjusted Revenue at £73.9m, +40% YoY H1 23 H1 22 Change ➢ Group EBITDA of £4.1m, +11% YoY £m £m % Statutory Revenue 73.2 52.9 38% Statutory Re
Slide 9: Cash and Debt Facilities
Cash and Debt Facilities ➢ On 7 December 2022, the Group refinanced its credit facilities with Lloyds Bank and Natwest, entering into a new facility for £60m expiring in December 2025 ➢ The cash draw down on this facility at 31 March 2023 was £30m (31 March 2022: nil) ➢ This cash draw down is made t
Slide 10: Strategy
Simon Cooper Chief Executive Officer Strategy
Slide 11: Growth Strategy
Growth Strategy Core: Grow share of UK Value Expansion: Attract the widest possible audience of UK beach holidaymakers Online / B2C Offline / B2B Optimise Supply 17m Total UK market*: pax 17m pax Activate Expansion Expansion Long = Brand Haul +3m pax +1m pax 10m Expansion: pax 12m pax Expansion: Pre
Slide 12: Brand activity
Brand activity Grow top 3 consideration Top 3 Consideration and Awareness of free lounge Brand: 35% 33% Continuing to invest to activate the brand proposition 30% 30% Maintained our key metrics against aggressive competitor set 27% Highest ever top 3 consideration 25% 22% 21% 20% Online pe
Slide 13: Supply
Supply Leverage existing capabilities to further optimise supply Direct contracting – share of hotel sales 90% 89% 91% 85% Direct bookings in H123 at 91%, up from 70% in FY19: ― Margin benefit vs 3rd party bedbanks 68% 70% 65% 57% ― Improved customer and supplier experience 53% Prompt payment mo
Slide 14: Invest in talent and technology to extend core capabilities
Invest in talent and technology to extend core capabilities Evolving our platform will support growth in our core and expansion areas Foundations of OTB are underpinned by track record of investment in tech We remain committed to attracting, developing and retaining tech talent Investment into
Slide 15: Expansion opportunities - Premium
Expansion opportunities - Premium Resilient segment, high earnings visibility and profitability Short haul online beach market: Market size (pax): 10m OTB rationale for penetrating Premium: Market TTV: £7bn Significant incremental revenue opportunity Greater resilience to cost of living squeez
Slide 16: Expansion opportunities: Long Haul
Expansion opportunities: Long Haul A huge opportunity exists to attract a wider audience of beach holidaymakers Long Haul booked TTV £m LH overview ― OTB has a low but growing share of a 3m pax market ― Consistent growth in Travelled TTV ― FY23 H1 LH TTV up 26% vs a strong comparator ― Booked TTV
Slide 17: Outlook
Outlook ➢ Trading momentum has continued since 1 April 2023, and comparator periods will start to soften as we annualise widespread airline and airport disruption experienced during Summer 2022 ➢ We believe there is significant unsold bed and seat capacity in market ➢ We continue to see strength in
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