On The Beach Group Plc · LSE:OTB
On The Beach — FY2023 Earnings Presentation
20 slides from On The Beach's earnings presentation, Dec 5, 2023
Slide 1: FY23 Results Presentation
FY23 RESULTS PRESENTATION 5 December 2023
Slide 2: Presenting today
Presenting today Strategic Progress Shaun Morton - CEO FY23 Financial Performance Jon Wormald - CFO 2
Slide 3: FY23 Highlights
FY23 Highlights ➢ On the Beach had its best Summer ever and delivered record Total Transaction Value ("TTV") of £1.1bn in FY23, +26% YoY ➢ Summer B2C '23 passenger numbers 13% ahead of Summer B2C '22 ➢ Long Haul B2C TTV +74% and Premium 5* B2C TTV +32% YoY ➢ Developed our differentiated proposition,
Slide 4: Record trading
Record trading Group booked TTV by quarter ➢ Seven consecutive quarters of record performance +26% YOY ➢ FY Booked TTV +26% YoY ➢ FY Travelled TTV +26% YoY Q1 Q2 Q3 Q4 Oct/Nov ➢ Sustained significant demand for short and long lead time bookings FY19 FY22 FY23 FY23 FY24 ➢ Summer ’24 significantly ahe
Slide 5: FY23 Financial Performance
Jon Wormald Chief Financial Officer FY23 Financial Performance
Slide 6: FY23 Group Financial Highlights
FY23 Group Financial Highlights FY23 FY22 Change ➢ Booked TTV growth as a result of bookings +12% and ABV growth of £m £m % 13% Booked TTV 1,070.4 849.4 26% ➢ Adjusted Revenue shown on a Group basis, with B2C growth of 23% Adjusted Revenue 171.0 143.6 19% and B2B growth of 13% Adjusted EBITDA 31.2 2
Slide 7: Profit and Loss Account – B2C
Profit and Loss Account – B2C % ➢ Adjusted Revenue of £106.9m, +23% YoY Bookings '000 511.6 452.6 13% ➢ ABV growth of 14% Booked TTV £'m 983.8 762.7 29% ➢ £5.1m investment into holiday perks as part of our customer proposition FY23 FY22 Change £m £m % ➢ Marketing spend 38% of revenue, (FY22 45%). Re
Slide 8: Profit and Loss Account – B2B
Profit and Loss Account – B2B FY23 FY22 Change ➢ Trusted brands with significant market opportunities % Booked TTV £'m 86.7 86.7 - ➢ New Classic leadership in place FY23 FY22 Change ➢ Action already taken to reduce costs looking ahead to FY24 £m £m % Statutory Revenue 64.1 56.3 14% Statutory Revenue
Slide 9: Profit and Loss Account – Group
Profit and Loss Account – Group FY23 FY22 Change ➢ Group P&L shown on a continuing basis and excludes the discontinued International % segment, losses of (£0.5m) FY23, (£0.1m) FY22 Bookings '000 532.1 475.0 12% Booked TTV £'m 1,070.4 849.4 26% ➢ Adjusted EBITDA in line with market expectations and G
Slide 10: Cash generative and debt free
Cash generative and debt free 210.0 FY23 Group Cash and Trust Balance ➢ Annual cash cycle sees short term investment into working capital 160.0 ➢ Maximum RCF available of £48m 110.0 ➢ Max drawdown was £30m in mid April 60.0 £105m 10.0 ➢ As the business grows the working capital requirement and the t
Slide 11: Capital allocation framework
Capital allocation framework Maximise shareholder value through prioritising growth whilst maintaining capital discipline Framework Approach 1) Investment into the business to deliver organic growth 1) Returns based approach to investment 2) Sustainable and progressive dividend policy 2) Annual divi
Slide 12: FY23 review
Shaun Morton Chief Executive Officer FY23 review
Slide 13: OTB's growth strategy
OTB's growth strategy OTB’s addressable market: Strategy to penetrate OTB’s addressable market: 13
Slide 14: Differentiated proposition
Differentiated proposition Developed our customer perks* offer Leading indicators: Prompted brand awareness 88% Highest ever top 3 consideration 30% Top 3 Consideration for those aware of perks 44% NPS +19% for customers with a perk Increased rebook rates for customers who had a perk B2C
Slide 15: Technology platform
Technology platform Investment into our proprietary technology Powers growth in our core and expansion areas Significant progress upgrading the core platform increasing the accuracy and speed by which we are able to serve billions of deals to our customers New web and mobile apps deployed in the
Slide 16: Premium progress and Value recovery
Premium progress and Value recovery 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 squeeze Typically booked earlier – greater visibility Value (typ
Slide 17: Long Haul progress
Long Haul progress A huge opportunity exists to grow Long Haul OTB Long Haul booked TTV £m LH overview OTB has a low but growing share of a 3m pax market Consistent growth in Travelled TTV +92% YOY FY23 LH B2C TTV up 74% vs a strong comparator FY23 LH mix of Group TTV now up to 8% FY24 Y
Slide 18: Outlook
Outlook • Our FY23 growth has continued into the new financial year with YTD TTV as at 2 Dec +26% • Our forward book is at record levels • Group Winter ‘23 YTD TTV is +34% • We approach our key booking period in Q2 with significant momentum • Our platform and proposition are stronger than ever, and
Slide 19: Cautionary statement
CAUTIONARY STATEMENT 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 by their use of a date in the future or such words as
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