DAVY VIEW

On The Beach has reported a headline adjusted PBT of £35m, in line with consensus (Davy: £35m). Total transaction volume (TTV) was up 11% year-on-year (yoy), while revenue was up 6% yoy following city break expansion and price investments. EPS was up 45% to 19p as a result of the completion of £50m in share buybacks in the last 12 months, representing 14% of the share capital. Looking ahead, winter 2025/26 forward bookings are +15% yoy. Year-to-date (ytd) forward bookings for summer 2026 are +8% yoy, with the company confident in delivering another record summer. A guidance range for FY26 has been given at this stage in the year with company confident in delivering adjusted PBT of £39-43m, in line with market expectations (Davy: £43m). We do not expect to materially change our estimates.