By Christian Moess Laursen
Shares in On The Beach dropped Tuesday after the company reported a narrowed pretax loss for the first half of its fiscal 2023.
At 0718 GMT, shares were down 15.20 pence, or 12%, at 112.00 pence, its lowest since November.
The U.K. online retailer said its pretax loss for the six months ended March 31 narrowed to 6.0 million ($7.5 million) from a loss of GBP7.0 million in the prior-year period, as administrative expenses rose 27% to GBP57.6 million.
Adjusted pretax loss–which exclude exceptional and other one-off items–was GBP100,000 compared with break-even a year prior.
Revenue grew by 38% to GBP73.2 million as total transaction value rose 28%, boosted by volume growth and an increase in average booking sales, the company said.
Looking ahead, On The Beach said momentum has continued since April, and the comparator periods ahead will start to soften. The year is expected to more weighted to the second half, as upfront brand investments will secure top- and bottom line growth, it said.
“We are encouraged by the continued momentum in our expansion areas as well as recent positive signs of recovery in our core value customer base,” the company said.
Write to Christian Moess Laursen at christian.moess@wsj.com
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