On the Beach Group (LSE:OTB) (On the Beach Group (LSE:OTB)) PLC said booked sales rose 6% in the first half from 2019’s pre-pandemic levels, but the UK-based travel retailer warned that it has yet to see the full impact of escalating living costs on bookings.
Adjusted booked sales (the value of holidays booked every month before cancellations and adjustments) rose to £385.8mln in the first six months of the year from £365.4mln in the same period of 2019.
This represented a 322% increase from the first half of last year, despite “heavily disrupted" trading during the period
While adjusted group revenue increased to £52.9mln for the first six months of this year, up nearly five-fold from the £12mln posted in the same period of 2021, but was still below the £63.5mln reported in the first half of 2019.
Interim pretax losses shrank to £7.0mln, or 3.3p per share, from £21.6mln, 11.2p per share, in 2021.
The Omicron variant “heavily impacted group sales in November and December 2021 and early January 2022”, but by mid-January sales had recovered to pre-pandemic levels, On the Beach said in a statement.
The company reported “subdued” consumer demand for bookings before Covid-19 restrictions were eased, during which time it invested £5.2mln in pandemic-related tests and airport security fast track.
Its outlook for the rest of the year remains cautious but stable.
It says its sales remain “resilient”, but that “it continues to remain cautious regarding the consumer environment”.
“Customers are typically booking holidays with shorter lead times and we believe we are yet to see the full impact of the escalating costs of living on bookings,” said chief executive Simon Cooper.
“Despite this, we remain confident that we have taken the right actions throughout the pandemic and we will continue to support our customers and staff as a priority. Our investments in brand and proposition will ensure profitable trading into the second half and has left us in a strong position to continue growing market share.”
Its shares were down 5% at 228.50p in mid-morning trading, underperforming a 0.5% dip in the FTSE all share.