On the Beach Group (LON:OTB) Posts Quarterly Earnings Results

On the Beach Group (LON:OTB) released its quarterly earnings results on Tuesday. The company reported GBX 1.20 EPS for the quarter, Digital Look Earnings reports. The firm had revenue of GBX 5,220 million during the quarter. On the Beach Group had a return on equity of 5.43% and a net margin of 7.08%.

Here are the key takeaways from On the Beach Group’s conference call:

• Half-year booking volumes hit a record, with bookings up 7% year over year and traveled volumes up 22%, showing the company is taking share despite a tough market.
• Technology and app adoption are driving better conversion and loyalty; search conversion rose 24%, nearly 40% of bookings are now made in the mobile app, and repeat booking metrics improved materially.
• The business is seeing a later booking curve after Middle East conflict and a weaker consumer backdrop shifted demand closer to departure, especially for summer travel and Eastern Med destinations.
• Profitability and cash generation remain solid, with net debt down, substantial facility headroom, and an interim dividend maintained, underscoring balance sheet strength.
• Management reinstated full-year guidance for adjusted profit of £18 million to £25 million, citing improved recent trading, including bookings up 9% over the last six weeks and summer bookings up 17% month to date.

On the Beach Group Price Performance

Shares of OTB stock opened at GBX 139.31 on Thursday. The firm has a market capitalization of £201.86 million, a price-to-earnings ratio of 9.23, a PEG ratio of 0.71 and a beta of 1.35. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.83 and a current ratio of 1.28. The stock’s 50-day simple moving average is GBX 170.29 and its 200-day simple moving average is GBX 197.52. On the Beach Group has a fifty-two week low of GBX 135 and a fifty-two week high of GBX 304.50.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Shore Capital Group reissued a “hold” rating on shares of On the Beach Group in a research report on Thursday, March 12th. Berenberg Bank reiterated a “buy” rating and set a GBX 330 price objective on shares of On the Beach Group in a research note on Monday, January 19th. Canaccord Genuity Group reduced their price objective on shares of On the Beach Group from GBX 293 to GBX 240 and set a “buy” rating for the company in a research note on Wednesday. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on shares of On the Beach Group from GBX 345 to GBX 314 and set a “buy” rating for the company in a research note on Wednesday. Five research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of GBX 294.

Insider Buying and Selling

In related news, insider Shaun Morton bought 991 shares of the company’s stock in a transaction on Monday, April 20th. The shares were bought at an average price of GBX 185 per share, with a total value of £1,833.35. 9.03% of the stock is owned by company insiders.

On the Beach Group Company Profile

On the Beach is one of the UK’s largest online package holiday specialists with significant opportunities for growth. Founded in 2004 and listed on the London Stock Exchange in 2015, today over 1.7 million customers find, book and enjoy their perfect package holiday with us every single year.

Our innovative technology, low-cost base and strong customer-value proposition provides a structural challenge to legacy tour operators and online travel agents, as we continue disrupting the market. Our model is customer-centric, asset light, profitable and cash generative.