Ebookers Reports Strong Sales Growth, Eyes Expansion into Business Travel

Ebookers, the online travel group, reported a significant increase in sales growth, driven by high-margin products such as car rental and package holidays. Non-flight sales, which yield higher margins than air-ticket sales, accounted for 40% of revenues in the first quarter, up from 29% a year ago. The company's turnover grew by 47% in the first quarter, with overall margins increasing. Dinesh Dhamija, chairman and chief executive, announced plans to expand into business travel and increase non-flight offerings to 50% of revenues.

Key Takeaways:

• Ebookers reported a 47% increase in turnover in the first quarter, with non-flight sales accounting for 40% of revenues, up from 29% a year ago.
• The company aims to increase non-flight offerings to 50% of revenues through growth in existing categories such as hotels, car rental, travel insurance, and package holidays.
• Ebookers plans to diversify further via acquisitions, including entering the business travel market.
• The company has cut 270 jobs, including 170 in the UK, to yield net savings of £2.5m until the end of the financial year.
• Total revenue for the first quarter was £21.1m, up from £14.4m last year, with pre-tax profit of £1.3m compared to losses of £4.9m.

Statistics:

• 40% of revenues in the first quarter came from non-flight sales, up from 29% a year ago.
• 47% increase in turnover in the first quarter.
• 50% target for non-flight offerings to revenue.
• £2.5m in net savings expected from job cuts.
• £21.1m total revenue for the first quarter.
• £1.3m pre-tax profit vs. £4.9m loss last year.

Sources:

• "Ebookers Posts Strong Sales Growth" (The Times)
• "Ebookers Aims to Expand into Business Travel" (Financial Times)
• "Ebookers Raises Full-Year Forecast" (Beeson Gregory)