On the Beach Shares Slide as Late Bookings Hit Sales and Outlook

Overview

• On the Beach, which reported first-half results Tuesday, posted sales of £52.2 million, down more than 12%, and a pre-tax loss of £3.2 million.
• The company restored full-year adjusted profit guidance to £18 million–£25 million, well below prior analyst estimates of £39 million–£43 million.
• Booking activity set records with volumes up 7% year over year and departed trips up 22%, and management said the most recent six weeks saw bookings rise 9% with summer month-to-date up 17%.
• Executives said customers are booking closer to departure and the Iran conflict has curbed demand for Middle East and Eastern Mediterranean trips, including cancellations to the UAE, which shifts revenue timing for a business that reports on a booked basis.
• Shares fell about 16%–17% Tuesday and the stock is down more than a third this year, reflecting pressure across travel names as investors weigh disruption risks and higher fuel costs.