ebookers plc, the pan-European online travel company issued a trading statement. Quarter 2 has continued to see encouraging online growth…
ebookers plc, the pan-European online travel company issued a trading statement. Quarter 2 has continued to see encouraging online growth with significant year-on-year increases. Total gross sales are forecast to be in the region of £135m (2003 – £118m) despite this being the Company`s seasonally weakest quarter as well as the effect on sales of the recent divestments of low-profitability retail outlets in the UK and Holland. This represents a year on year increase of 14.5%, and of 28% on a like-for-like basis taking into account the retail divestments.
ebookers` total online sales for Quarter 2 increased on an organic basis by 62% year-on-year, web-enabled sales by 16%, and offline sales decreased by 14%.
The company is emphasising its commitment to its high growth online future with further significant investments in people, technology and services in its online business.
Such investments put ebookers in a strong position to support the expected organic growth of the business through the long and mid-haul high season in the second half of the year. Additionally, the financial impact of Quarter 1 and Quarter 2 cost and workforce reductions on operating expenditure are on track to take effect from Quarter 3 onwards.
Gross sales and turnover outlook for the year is positive. However, demand and margins are now forecast to be lower than originally expected. With these reductions and increased investment, ebookers expects that its adjusted profit* for the year will be significantly below the low end of recent published analyst expectations (which range between £10.3m and £15.0m in the UK and $14.3m in the US.), but will nevertheless represent an improvement on last year`s adjusted profit of £1.3m (US GAAP US$1.0m). In addition, the net loss for the year is expected to be substantially reduced as against the net loss for the year ended 31 December 2003 of £15.0m.
Quarter 2 results are scheduled to be announced on 16 August 2004 and this announcement will include an update on current trading for the first half of Quarter 3.
Dinesh Dhamija, Chief Executive, said:
“We are reinforcing the continuing high growth of the online business with significant incremental investment in technology and other support, and managing a phased transition from our less profitable low growth offline businesses. This represents a further consolidation of our position as one of Europe`s leading online travel companies”
UK GAAP: Adjusted pre-tax profit is defined as profit on ordinary activities before taxation after adding back exceptional items, amortisation of goodwill, stock compensation expenses/ credits and National Insurance relating to share options payable if employees exercise their share options.
US GAAP: We define adjusted pre-tax income as operating income from continuing operations after adding back amortisation, restructuring charges and impairments, stock compensation expenses and National Insurance relating to share options payable if employees exercise their share options and certain other general and administrative costs, and after adding net interest income/expense.
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