lastminute.com (LMN) H1 2024 earnings summary

Executive summary

• Dynamic Packages (DP) drove profitability in H1 2024, offsetting a 9% revenue decline caused by Ryanair restrictions and a softer travel market; DP now accounts for 64% of group gross profit and profitability.

• Net result increased 35% to €10 million, surpassing the full-year 2023 result, with operational efficiency and cost discipline supporting growth.

• A landmark three-year agreement with Ryanair was signed in July 2024, expected to benefit results from 2025 after technical integration.

• Geographic expansion continued into 33 markets, including Iceland, Mexico, and Chile, alongside new ancillary services, fintech solutions, and a major summer brand campaign.

• The Board introduced a dividend policy, distributing €6.9 million in H1 2024, reflecting a return to profitability.

Financial highlights

• Gross Travel Value (GTV) declined 22% year-over-year to €1,574.9 million, mainly due to Ryanair restrictions and metasearch channel impact; DP GTV rose 3%.

• Revenues fell 9% to €164.6 million, but gross profit increased 2% to €70.2 million, with DP revenues up 16% and gross profit up 25%.

• Adjusted EBITDA was €23.0 million (-8%), with a stable margin of 14%.

• Net financial position improved to €142.9 million, with gross debt reduced to €18.8 million and gross cash at €153.4 million.

• Operating cash flow was strong at €177 million, mainly due to working capital changes from DP volumes.

Outlook and guidance

• Revenues for 2024 are expected to be in line with 2023, with single-digit adjusted EBITDA growth and improved H2 2024 performance anticipated.

• The Ryanair agreement is expected to strengthen the midterm outlook, with full benefits in 2025 after technical integration.

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