Lastminute.com credits dynamic packaging focus for return to net profitability

European OTA publishes full 2023 financial results

Lastminute.com has credited its focus on dynamic packaging and B2B sales for its return to net profitability after three years of losses.

The European OTA reported revenues of €321.3 million in its final financial results for 2023 , up 6% on 2022, with gross profit of €321.3 million representing a 20% increase on 2022.

Year-on-year growth of 28% saw the OTA report an adjusted EBITDA of €39.7 million, with a €7 million net income. lastminute.com management expects revenues to increase in 2024 and forecasts a 20% rise in adjusted EBITDA.

Sales of dynamic packages, which lastminute.com now offers in 30 European markets, grew 41% against 2022 last year and led to an increase in margins.

The OTA also reported its agreements with tour operators and other B2B partners, ‘primarily represented by corporate rewards businesses’, had contributed to its sales growth.

The firm said its adjusted EBITDA for the first quarter of 2024 is expected to be in line with its 2023 results ‘regardless of the situation with Ryanair’, the airline which restricted access to lastminute.com and other OTAs but has since forged agency agreements with some.  

Reporting its results, lastminute.com said it aims to ‘shortly find a solution which would enable lastminute.com to resume regular operations with Ryanair’.

Going forward, the report says lastminute.com hopes to expand its ancillaries portfolio, enhance its deferred payment options, build on its mobile app, and improve customer experience.

Chief executive Luca Concone said: “The decision to focus on dynamic packaging has served us well in 2023.

“In a highly regulated market, we have the licenses to operate in a significant number of countries. This is one of our competitive advantages. We see plenty of room for growth and can continue to take advantage of opportunities.

“In 2024, we want to further develop our app to enrich the customer experience and increase loyalty. Our B2B initiative to win new partnerships is already bearing fruit.

“The flexibility of our dynamic packaging engine in Europe is probably unbeatable, as it provides almost unlimited combinations among 445 airlines (and rail providers) and over 2.1 million different accommodations. This versatility enables us to effectively operate across various segments, channels, and partnerships mitigating risks in both the B2C and B2B sectors and ensuring resilience in our business operations.

Lastminute.com also confirmed Diego Fiorentini has been appointed as chief financial officer, replacing Sergio Signoretti, and published its latest Sustainability Report.

Concone added: “My sincere thanks go to Sergio Signoretti for his significant contribution to the development of lastminute.com during his tenure. I welcome the new CFO, Diego Fiorentini, who will be an important addition to the leadership team.”