lastminute.com (LMN) H1 2024 earnings summary

Executive summary

• H1 2024 net profit rose 35% to €10M despite a 9% revenue decline, driven by strong Dynamic Package (DP) performance and operational efficiency.

• Secured a landmark 3-year agreement with Ryanair, expected to benefit H2 2024 and show full impact in 2025.

• DP now represents 64% of group gross profit, with expansion into 33 markets and new ancillary and fintech solutions.

• Launched a major summer brand campaign and adopted a digital-first marketing approach to boost engagement.

• Introduced a dividend policy, distributing €6.9M in H1 2024, reflecting a return to profitability.

Financial highlights

• Gross Travel Value (GTV) declined 22% year-over-year to €1,574.9M, mainly due to Ryanair restrictions and metasearch channel impact.

• Revenues fell 9% to €164.6M, but gross profit increased 2% to €70.2M; adjusted EBITDA margin stable at 14%, with adjusted EBITDA at €23M (-8%).

• Net financial position improved to nearly €143M, with gross debt reduced to €18.8M and strong operating cash flow.

• Excluding Ryanair-related business, revenues would have increased 2% and gross profit 11% year-over-year.

• Dividend payments and share buyback program under consideration, with majority of cash related to payables to suppliers.

Outlook and guidance

• H2 2024 expected to show improved performance, with full-year revenues anticipated to match last year and single-digit EBITDA growth.

• Ryanair agreement strengthens midterm outlook, with DP as the main growth engine and positive EBITDA growth expected by year-end.

• Focus remains on cost control, cash management, and scaling DP as the core business.