Lastminute.com sees profits jump despite lower overall revenues

OTA focusing on dynamic packaging and aims for Ryanair ‘solution’

Lastminute.com has reported a 5% increase in gross profits in the first quarter of 2024 despite lower revenues reflecting Ryanair’s restrictions on OTAs.

The dynamic packaging specialist reported a gross profit of €33.8 million versus €32.2 million in the first quarter of 2023.

Revenues fell from €89.1 million to €78.4 million, with an adjusted EBIDTA of €9.3 million.

Lastminute.com was one of the OTAs challenging Ryanair’s accusation that they were operating as ‘pirates’. In April last year, the Swiss Supreme Court ruled in its favour in a 15-year legal dispute with the budget airline.

And it was one of the OTAs demanding last year that UK regulators take enforcement action against Ryanair, accusing it of “unfair” treatment of customers booked through third parties and breaching data protection rules.

Lastminute.com says its lower revenues in its Q1 results are ‘a reflection of Ryanair’s restrictions on online travel agencies’

It has pivoted to focus on a dynamic packaging, which ‘offset the decline in volumes’. It reported that revenues from this channel are up 8% year on year

Reporting its results, the OTA said its management team ‘aims to shortly find a solution which would enable lastminute.com to resume regular operations with Ryanair’.

It also reported ‘a strong cash flow’ in Q1 2024, lifting its net financial position from €27.8 million at the end of 2023 to €79.9 million at the end of the first quarter of 2024.

Its gross cash position increased from €100.0 million to €128.1 million despite having reimbursed €19.1 million of loans from financial institutions.

Chief executive Luca Concone said: “In the first quarter we have demonstrated our ability to adapt to market trends and protect our profitability.

“The second quarter has started well, and we are confident that we will achieve the targets we set for the year 2024.”