Lastminute shares surge following results

Lastminute has posted positive results for the third quarter sparking a massive hike in its share price.

The company achieved EBITDA profit of £4.1 million for the third quarter, up 317% year-on-year. Lastminute also managed to push margins for the quarter up to 19.5%, from 12.9%, which compares to ebookers’ margin of 12.7%.

Lastminute chief financial officer, David Howell told TravelMole that the company had managed to get margins up firstly through the acquisition of Holiday Autos, which is a high-margin market, and also through advertising revenues on the homepage and newsletter, which netted £3.4 million in the last quarter.

Following the announcement this morning shares in lastminute.com were up 15p to 226p at 1pm, suggesting frenetic trading in the online agent.

The company’s results compare favourably to ebooker’s results, released yesterday. This is possibly due to the fact that lastminute sells mostly shorthaul travel, which has been less affected by the war in Iraq and outbreak of Sars.

Mr Howell told TravelMole: “There are a number of crucial differences between us and ebookers – we are more price relevant, we are a lifestyle brand that people check daily, and we have a better blend of products. We only compete with them on flights, which is where the smallest margins are.”

Lastminute chief executive, Brent Hoberman (pictured) said: “Substantial technology improvements were achieved in Q3 which resulted in an increase in customer conversion rates as the booking experience was further enhanced. “

Lastminute has also announced two new appointments. Ian McCaig, the former vice president of 3G operations at Nokia and managing director of Nokia UK & Ireland has been appointed chief operating officer.

Mr McCaig has a background in telecommunications, which covers roles at Telewest Communications and then at Nokia.

The second appointment is of Sven Boinet as a non-executive director with effect from 5 August. Mr Boinet is based in France, and has 15 years global hotels experience including roles in Accor.

Rumours were rife last week of a possible takeover of lastminute, and likely bidders included US travel giant Cendant, Expedia and Travelocity.

In reaction Mr Howell told TravelMole: “We never comment on rumours, but we are the number one in Europe – in France, Belgium, Italy and Spain – so we would be an attractive proposition to anyone wanting to dominate this market. We will do whatever is right by the shareholders.”

Read our previous stories:
24-July-2003 Lastminute shares climb on takeover rumours
13 Jun 2003Lastminute shares Sky-rocket
15 May 2003 Lastminute upbeat despite loss
31 Mar 2003 Interview: David Howell, chief financial officer, Lastminute.com
28 Mar 2003Lastminute’s DIY packages boosted by Holiday Autos deal
14 Oct 2002: Interview: Brent Hoberman, ceo and co-founder, lastminute.com
19 Mar 2002 The TravelMole Interview: Helen Baker, Lastminute.com