ON THE BEACH (OTB) – Travel & Leisure
| Price: 221p +14.8% | P/E: 18x |
| Market Cap: £320m | Yield: 1.6% |
In the 12 months to 30 September, holiday and city break operator On The Beach posted record TTV (total transaction value) for the fourth consecutive year along with record passenger numbers and adjusted pre-tax profit.
By leveraging its updated platform, the firm increased repeat bookings by 18% while the number of customers booking twice or more per year jumped 15%.
The group sent a record 1.7 million travellers on holiday and now believes its total market could be as large as 50 million passengers.
Our View
Beach holidays tend to be the biggest grower for the company, but we’re not talking cheap and cheerful – over 80% of TTV now comes from four- and five-star holidays.
Whatever life throws at us it seems we can’t do without an overseas break, and the current year has already seen a 16% increase in TTV with winter bookings up 15% on last year.
Like the pubcos, OTB has done well to capture disposable income but the market hasn’t twigged as the shares were down 14% year-to-date before today’s move.
Read the press release here: https://www.onthebeachgroupplc.com/investor-centre
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