On The Beach: Demand for city breaks boosts travel group
On The Beach has reported a double-digit profit increase in another market-outperforming trading update.
The online package holiday specialists told markets this morning that adjusted revenue grew 12 per cent year on year in the first half of 2025.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 19 per cent year on year.
Profit before tax rose 18 per cent year on year, while net debt fell from £47.3m to £29.5m.
The total value of booked deals with customers rose 13 per cent to £640.7m, On The Beach said, driven by an 11 per cent rise in booking volumes.
The Manchester-based business has benefited from a tie-up with Ryanair amid booming demand for European holidays.
The company has 130 short and long haul destinations, and increased its airline capacity to beach destinations by five per cent year on year.
Bookings are up 18 per cent in the quarter to date, it said, with the brand “confident” in delivering full-year profit before tax in line with expectations of £38.2m.
That would represent a 44 per cent year on year rise in pre-tax profit.
The results are the latest sign that consumers are still splashing out on holidays despite rising concerns about jobs and the economy. Companies like On The Beach have benefited from a rise in demand for holidays following the reopening of the global economy after the pandemic.
Shaun Morton, chief executive of On the Beach, said: “This record interim performance was driven by increased passenger bookings and reflects the strength of the On the Beach holiday proposition.
“Embedding perks into our app has resonated well with customers, while transformational development to our platform have facilitated our successful expansion into Ireland and City break packages.
“Demand for holidays remains strong as our customers continue to prioritise travel, and we are proud to have increased the breadth and quality of our offer so that they can holiday better and more often.”