HOTELMARKETING.COM

Lastminute.com narrows second-quarter losses

May 19, 2004 |

Lastminute.com has reported narrower second-quarter losses and gave a positive outlook for its traditionally strong fourth-quarter.

Lastminute.com has reported narrower second-quarter losses and gave a positive outlook for its traditionally strong fourth-quarter.

The online retailer said weak trading across the travel industry in April indicated customers were waiting to book their summer holidays later.

It posted an EBITDA loss of £1.5m in the three months to March 31, compared with a £3.1m loss the previous year. Total transaction value figures, which the company releases instead of income, jumped 93.9% to £178.8m.

In the current quarter Lastminute expects total transaction value by departure, which reflects customers departing for holidays, of between £250-280m.

The group completed the acquisition of hotel booking agency First Option and Gemstone Travel in the quarter and Online Travel Corporation at the start of the third-quarter.

Brent Hoberman, chief executive officer, said: “Strong organic like-for-like growth of 36.2% has been supplemented by key acquisitions in strong gross margin product categories. Industry trends, particularly the offline to online share shift seen in this quarter, continue to move in our favour. Overall we remain confident of delivering a further year of substantially improved financial metrics.”

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