On The Beach Group Plc · LSE:OTB
On The Beach — H1 2024 Earnings Presentation
21 slides from On The Beach's earnings presentation, May 14, 2024
Slide 1: FY24 H1 Results Presentation
FY24 H1 RESULTS PRESENTATION 14 May 2024
Slide 2: Presenting today
Presenting today Strategic Progress Shaun Morton - CEO FY24 H1 Financial Performance Jon Wormald - CFO 2
Slide 3: FY24 H1 Highlights
FY24 H1 Highlights ➢ Strong volume growth of +15%, continuing the trend of FY23 ➢ Continued momentum in strategic expansion areas, with B2C Long Haul TTV +61% and Premium TTV +41%, contributing to an increase in ABV of +6% ➢ Effective perks proposition with Top 3 consideration of 29% and Top 3 Consi
Slide 4: Nine consecutive quarters of record performance
Nine consecutive quarters of record performance LTM Group booked TTV £m ➢ FY24 H1 Group booked TTV +22% YoY ➢ Winter Travelled TTV +29% YoY ➢ Summer ’24 forward order TTV +22% versus last year ➢ Trading momentum has continued since the half year Covid Impact Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 5: FY24 H1 Financial Performance
Jon Wormald Chief Financial Officer FY24 H1 Financial Performance
Slide 6: FY24 H1 Group Financial Highlights
FY24 H1 Group Financial Highlights H1 24 H1 23 Change % ➢ Booked TTV growth at +22% as a result of bookings +15% and ABV Bookings '000 287.7 251.0 15% growth of 6% Booked TTV £'m 597.8 491.7 22% H1 24 H1 23 Change £'m £'m % ➢ Adjusted Revenue shown on a Group basis, with B2C growth of +11%, B2B (2%)
Slide 7: Profit and Loss Account – B2C
Profit and Loss Account – B2C H1 24 H1 23 Change % ➢ Strong B2C TTV growth at +24%, as a result of bookings growth +15% and Bookings '000 276.4 240.3 15% ABV growth of +8% Booked TTV £'m 551.4 445.8 24% H1 24 H1 23 Change ➢ Adjusted Revenue of £53.6m, +11% YoY £'m £'m % ➢ Adjusted revenue is reporte
Slide 8: Profit and Loss Account – B2B
Profit and Loss Account – B2B CPH H1 24 H1 23 Change B2B overview Bookings '000 7.4 5.8 28% ➢ Actions taken to create a single B2B operating model, with a single brand and platform Booked TTV £'m 17.3 13.0 33% solution leveraging the Group operations H1 24 H1 23 Change ➢ This will result in a single
Slide 9: Cash and debt facilities
Cash and debt facilities ➢ Total cash has increased by £32m YoY Group Cash and Trust balance 250 ➢ £195.9m in trust account as at 31 March 24 (+£59m YoY) which will materially unwind into company owned cash by year end 200 ➢ Annual cash cycle sees short term investment into working capital, as the 1
Slide 10: Capital allocation framework
Capital allocation framework Maximise shareholder value through prioritising growth whilst maintaining capital discipline Framework FY24 H1 update 1) Investment into the business to deliver organic growth 1) Investment has been made during the period to support bookings growth of 15%. This is expect
Slide 11: FY24 H1 review
Shaun Morton Chief Executive Officer FY24 H1 review
Slide 12: OTB's growth strategy
OTB's growth strategy OTB’s addressable market: Strategy to penetrate OTB’s addressable market: Source: ATOL licenses as at Dec 23, Management estimates, FY23 OTB bookings 12
Slide 13: Agile technology platform
Agile 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 Our new platform capabilities all
Slide 14: Differentiated customer proposition
Differentiated customer proposition Developed our customer perks* offer Leading indicators: Prompted brand awareness 89% Top 3 consideration 29% Top 3 Consideration for those aware of perks 46% Perk awareness increases our perception of offering value for money by 33% B2C Long Haul TTV +61
Slide 15: OTB LFL growth exceeds market growth vs S23
OTB LFL growth exceeds market growth vs S23 Beach seat capacity ex-UK is currently +7% S24 vs S23 Market capacity (m seats) and %ge increase since S19 80 +2% Latest round of ATOL licenses is +5% vs PY 70 60 B2C pax is currently +15% S24 vs S23 50 40 Ryanair agreement provides OTB secure acce
Slide 16: Significant milestone in signing new Ryanair partnership agreement
Significant milestone in signing new Ryanair partnership agreement ➢ Secures OTB free and fair access to Ryanair seat supply ➢ One of a small number of verified partners ➢ Facilitates a smoother customer journey when booking Ryanair flights as part of an OTB package ➢ Significantly improves the cust
Slide 17: Long term growth opportunity in Premium; well placed for Value recovery
Long term growth opportunity in Premium; well placed for Value recovery Short haul online beach market: OTB rationale for penetrating Premium: Market size (pax): 10m Significant incremental revenue opportunity Market TTV: £7bn Greater resilience to cost of living squeeze Typically booked ear
Slide 18: Market share opportunity in Long Haul
Market share opportunity in Long Haul A huge opportunity exists to grow Long Haul Long Haul booked TTV £m 40.0 OTB has a low but growing share of a 3m pax market 35.0 30.0 FY24 H1 LH B2C TTV +61% vs a strong comparator 25.0 20.0 FY24 H1 LH B2C TTV mix now up to 9% 15.0 10.0 5.0 Consistent gr
Slide 19: Outlook
Outlook ➢ Trading momentum has continued since the half year ➢ Summer ’24 forward order TTV currently 22% ahead of last year ➢ As a result of these factors, and our new Ryanair partnership, we expect to deliver another record Summer ➢ Board is confident in delivering FY24 profit in line with current
Slide 20: 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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