OTC reduces first half losses.
Online Travel Corporation (OTC) has reported reduced losses for the first half of the year and said it will “remain watchful” of consolidation opportunities in the sector.
The company – which last week revealed that it had pulled out of takeover talks – reported losses for the six months to April 30 of £979,000 compared to £1.6million for the same period last year. Gross sales increased by 54% to £35.7 million, compared to £23.2 million for the same period in 2001.
OTC’s leisure and new media divisions experienced the highest growth rates – with sales increasing by 150% to £21.7million, partly due to the launch last autumn of its Build-Your-Own (BYO) holiday booking technology. According to the company the technology should prove even more profitable in the future as it has been “significantly improved” since its launch to make it easier to navigate and faster.
While the results were generally good, the company admitted that a 3% fall in its corporate business to £9.1million was “disappointing.” OTC said June’s takeover of Travelstore.com should help to address this problem by driving more transactions online and by giving it bigger economies of scale in the business travel sector.
Chief executive Mark Jones (left) said: “The results show a strong performance in a particularly challenging period for the travel industry. We are pleased with the increase in sales of 150% in our leisure and new media division and the Group has increased gross margins and operating profits, proportionally reduced costs, developed exciting new products and successfully integrated acquisitions.”
He added: “We look forward to seeing the further benefits of our innovations, cost reductions and acquisition strategies at the full year, and remain watchful of consolidation opportunities in the sector.”
See our previous stories:
05-Jul-2002: OTC takeover talks off – for now
04-Jul-2002: Lastminute to buy OTC?
10-Jun-02: OTC snaps up Travelstore.com for £2.1million
15-May-02: OTC offers tailor-made holidays online
See previous TravelMole Interviews:
11 Jun 2002: The TravelMole Interview: Mark Jones, Online Travel Corporation
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