On the Beach says it expects to deliver pre-tax profits “broadly in line with expectations” this year, despite the searing UK heatwave and World Cup fever.
The OTA issued a trading update on Thursday morning (August 16) following the announcement of its £20 million acquisition of luxury operator Classic Collection Holidays.
It said despite external factors driving holiday demand down, it had been able to adjust its marketing spend down to ensure it continued to grow its revenue.
“As has been widely publicised, the exceptionally hot UK weather prevalent over recent months, combined with the World Cup, has suppressed holiday demand,” said the OTA’s update for the period April 1 to August 15.
“This has impacted our headline revenue growth during the period, but the weaker demand has driven a significant reduction in the group’s marketing spend, ensuring growth in revenue after marketing costs has remained strong.
“This is further testament to On the Beach’s resilient and flexible business model as we have previously demonstrated in similar circumstances.
“While August and September are important trading months for the group, the board continues to expect adjusted PBT [profit before tax] for the financial year will be broadly in line with management expectations.”
Simon Cooper, On the Beach chief executive, added: “With regards recent trading, the resilient, flexible and asset-light nature of On the Beach’s business model, combined with our advanced technology, has allowed the business to swiftly adapt to the unprecedented three month heatwave and deliver an impressive performance.”