On The Beach Group (OTB)

Sector:

Tourism and Leisure Services

Index:

FTSE Small Cap

278.50p
   
  • Change Today:
    -36.50p
  • 52 Week High: 499.40
  • 52 Week Low: 140.00
  • Currency: UK Pounds
  • Shares Issued: 157.36m
  • Volume: 1,289,023
  • Market Cap: £438.25m

On the Beach to up marketing spend to capitalise on Thomas Cook demise

By Michele Maatouk

Date: Tuesday 22 Oct 2019

LONDON (ShareCast) - (Sharecast News) - On the Beach said on Tuesday that it was stepping up its marketing investment as it looks to capitalise on the demise of Thomas Cook.
In an update for the year to 30 September, the online holiday retailer said trading has remained in line with management's revised expectations and that the collapse of Thomas Cook last month had created an "unprecedented opportunity to take additional market share at an increased rate".

As a result, the company has started to strategically increase its marketing investment both online and offline to attract new customers to onthebeach.co.uk, sunshine.co.uk, Classic Collection and Classic Package Holidays.

Chief executive officer Simon Cooper said: "I would like to thank all teams across the business for their exceptional response following the compulsory liquidation of TCG in ensuring that customers were either re-booked or refunded in the shortest possible time whilst maintaining our high quality customer experience standards.

"On the Beach has an exciting opportunity to significantly increase its market share over the short to medium term by leveraging its strong brand and core capabilities."

Shore Capital said: "We expect this increase in marketing to result in a short-term cost for a modest long-term gain.

"The key factors for seeing a return from this marketing strategy include how fast seats can return to the market and the normalisation of seat prices post Thomas Cook."

On the Beach warned in August that it would take a one-off hit from helping customers affected by the Thomas Cook collapse. It did not provide any figures but said at the time that it would book an exceptional cost as it helped customers to organise alternative travel arrangements.

The group said it expected to be able to recover the costs of the cancelled flights via chargeback claim, as was the case for the collapse of Monarch Airlines in 2017.

At 0940 BST, the shares were up 0.9% at 440.60p.

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OTB Market Data

Currency UK Pounds
Share Price 278.50p
Change Today -36.50p
% Change -11.59 %
52 Week High 499.40
52 Week Low 140.00
Volume 1,289,023
Shares Issued 157.36m
Market Cap £438.25m

OTB Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
93.57% below the market average93.57% below the market average93.57% below the market average93.57% below the market average93.57% below the market average
94.29% below the sector average94.29% below the sector average94.29% below the sector average94.29% below the sector average94.29% below the sector average
Price Trend
45.47% below the market average45.47% below the market average45.47% below the market average45.47% below the market average45.47% below the market average
1.37% above the sector average1.37% above the sector average1.37% above the sector average1.37% above the sector average1.37% above the sector average
Income
86.42% below the market average86.42% below the market average86.42% below the market average86.42% below the market average86.42% below the market average
77.27% below the sector average77.27% below the sector average77.27% below the sector average77.27% below the sector average77.27% below the sector average
Growth
25.00% above the market average25.00% above the market average25.00% above the market average25.00% above the market average25.00% above the market average
82.86% above the sector average82.86% above the sector average82.86% above the sector average82.86% above the sector average82.86% above the sector average

What The Brokers Say

Strong Buy 9
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 9
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

OTB Dividends

  Latest Previous
  Final Interim
Ex-Div 09-Jan-20 30-May-19
Paid 13-Feb-20 28-Jun-19
Amount 2.00p 1.30p

Trades for 29-May-2020

Time Volume / Share Price
16:35 484,418 @ 278.50p
16:29 2,000 @ 274.00p
16:29 183 @ 274.00p
16:29 517 @ 274.00p
16:29 691 @ 276.00p

OTB Key Personnel

CEO Simon Cooper

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