On the Beach brings back dividend after package holiday boost

On the Beach has launched a £25m share buyback and pledged bumper full-year dividends for investors after demand for its package holiday offering hit record levels in 2024.

The Manchester-headquartered firm said it intends to re-introduce a final dividend of 2.1p per share in what marks the first full-year payout since the pandemic impacted the travel sector.

It came after On the Beach reported record bookings for the third consecutive year, cashing in on a travel boom that has swept across Europe over the last few years.

Total transaction value (TTV) came in at £1.2bn, up 15 per cent year-on-year, alongside revenue of £128.2m, up 14 per cent. On an adjusted basis, pre-tax profit rose by a quarter to £31m.

In a statement to markets, On the Beach also told investors its forward order book had hit record levels, with winter booking year-to-date currently up by a quarter.

“Current trends and strategy give us confidence that summer 2025 will be significantly ahead of summer 2024,” it added.

Chief executive Shaun Morton said the performance was “driven by a combination of initiatives,” including the company’s announcement of a landmark partnership deal with its long-term budget airline antagonist, Ryanair.

“The partnership has facilitated an improved customer journey for those booking Ryanair flights as part of an On the Beach package, whilst enabling increased operational efficiency and a greater focus on areas of strategic value.

“What’s more, the agreement and significant upgrades to our technology have supported a doubling of our addressable market, following the addition of city breaks to our offering alongside planned investment in Ireland.

The group said it had “every confidence” of delivering on medium-term targets, which include doubling TTV to £2.5bn, pre-tax earnings of £100m and adjusted profit of £85m.

Shares have risen 43 per cent over the last 12 months.