On the Beach Issues Lower Profit Forecast Due to Iran War’s Impact on Travel
Impact of Iran War on On the Beach’s Financial Outlook
Profit Forecast and Analyst Estimates
May 12 (Reuters) - British package holiday group On the Beach reinstated its annual adjusted pretax profit forecast on Tuesday, which was below analyst estimates, after a slowdown in bookings due to the Iran war had forced it to suspend the outlook.
Booking Trends in Conflict-Affected Destinations
Customers pulled back on booking holidays to destinations near the conflict zone such as Turkey, Cyprus and Egypt, and while the group said bookings had stabilised somewhat since end-March, many travellers were taking a "wait and see" approach.
Adjusted Profit Expectations
On the Beach said it expects adjusted profit before tax of 18 million pounds to 25 million pounds ($24.40 million-$33.89 million) for the year ending September 30, compared with analyst estimates of 38.5 million-42 million pounds in on a company-compiled poll.
Recent Booking Activity and Ongoing Challenges
The company reported 9% growth in booking activity in the most recent six weeks as it heads into the key summer period, which it hopes will help offset persistent pressures from flight cancellations and delays and shorter window between bookings and departures.
Exchange Rate and Reporting Credits
($1 = 0.7377 pounds)
(Reporting by Simone Lobo in Bengaluru; Editing by Subhranshu Sahu)
