Lastminute.com, the Swiss-based online travel and leisure company, has announced an impressive turnaround in its financial performance for the third quarter. It reported a significant shift in its product mix, with a focus on service packages rather than flights, which has resulted in a swing to aftertax profit. As a result, the company has now raised its guidance for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to a 25% increase, compared to the previous forecast of 10% to 15%.
Additionally, Lastminute.com expects a revenue growth of 10%, within the previously communicated range of 10% to 15%. In the third quarter, the company achieved an aftertax profit of €2.7 million ($2.9 million), marking a substantial improvement from the loss of €19.7 million during the same period last year. Adjusted EBITDA also saw significant growth, reaching €12.5 million compared to €7.7 million previously.
Total revenue for Lastminute.com increased to €81.4 million from €79.0 million, despite a 4% decline in gross travel revenue to €815 million.
This positive financial outcome demonstrates Lastminute.com's effective shift in strategy towards service packages, which has evidently resonated with its customers and brought about substantial profitability within a competitive market.