Skyscanner ‘poised for £1bn valuation’

Skyscanner ‘poised for £1bn valuation’

Skyscanner is poised to gain a valuation of £1 billion as an early investor seeks to sell part of its stake, according to a report this morning.

Scottish Equity Partners is looking to offload 10% on the Edinburgh-based online travel comparison business.

Bids for the stake in the company are understood to be due in this week, the Daily Telegraph reported.

A successful sale would represent a strong return for SEP, which put £2.5 million into Skyscanner in 2008.

The private equity firm would also remain a major stakeholder, leaving open the possibility of more big profits if the start-up plans a flotation or becomes a takeover target for a larger online travel service, the newspaper said.

A £1 billion valuation for Skyscanner would mean it is now believed to be worth roughly double what it was two years ago, when the Silicon Valley venture capital firm Sequoia invested.

Skyscanner, which makes most of its money from airline referral fees, reported revenues of £88.6 million in 2014, up 37% on the previous year. Revenue growth slowed from more than 90% in 2013.

Pre-tax profit last year was £12.6 million, down from £22 million, which the company attributed to investment in increased staff numbers and product development.

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