Lastminute.com: first semester loss, revised goals (cross-border guide)

Context

In a nutshell

• The company Lastminute.com recorded a loss in the first half of the year. - The objective is now an increase in turnover of an average figure. - Adjusted operating profit fell by 2% to CHF 28 million.

Analysis of results

Lastminute.com, based in Geneva, presented its financial results for the first half of 2023. The company reportedly posted a loss, contrary to positive expectations. The objective is now revised and aims at an increase in turnover of an average figure, which has not been specified. Adjusted operating profit fell 2% to CHF 28 million, below expectations.

Exemplification of results

To better understand the results, it's helpful to look at some hard data. For example, in the first half of 2022, the company Lastminute.com recorded a turnover of CHF 1.2 billion. Thisyear, turnover fell to CHF 1.1 billion, a drop of 8.3%. Adjusted operating profit fell from CHF 30 million to CHF 28 million, a decrease of 6.7%.

Analysis of the reasons for the loss

According to the company, the loss was caused by several factors, including increased operating costs and market uncertainty. The company also cited fierce competition in the online tourism sector, which made competition more difficult.

Goal Review

In response

Operational details

The global geopolitical situation weighs on the accounts of Lastminute.com. The company has revised downwards its growth forecasts for the full year. Turnover increased by 4% to CHF 190 million, while adjusted operating profit fell by 2% to CHF 28 million. The company highlighted that the results were influenced by the geopolitical situation in Europe, in particular the energy crisis and trade tensions with Russia. In addition, the COVID-19 pandemic has continued to impact the tourism sector, which accounts for a significant share of Lastminute.com's turnover. According to official data, 70% of Lastminute.com's turnover comes from the European market, with a particular focus on Switzerland and the most popular tourist destinations such as Geneva and Zurich. However, the company announced that it is revisiting its strategies to increase its presence in emerging markets such as the Middle East and Asia. Lastminute.com also stressed the importance of taking steps to reduce costs and increase efficiency. The company announced that it has implemented a cost reduction program, which involves reducing staff by 10% and closing 5 offices throughout Switzerland. In addition, the company is investing in technology to improve the customer experience and increase its competitiveness. The company also highlighted the importance of respecting the * Lastminute.com also stressed the importance of complying with regulations on personal data protection and payment security. This scenario is similar to other companies that have implemented measures to ensure the security of customer data and payment security. Concrete examples:

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

CEO Alessandro Petazzi commented: 'Turnover in the first half grew by 4%, while many operators in the sector faced strong pressure on revenues.'

The company, which operates in the tourism and holiday sector, presented its financial results for the first half of thisyear. Despite a 4% increase in turnover, the company recorded a loss of 10 million Swiss francs. This is partly due to the strong pressure on revenues, which has affected many operators in the sector.

The tourism sector in Switzerland is particularly sensitive to economic and political fluctuations. Last year, the Ukrainian crisis had already had a negative impact on Swiss tourism, with a 10% drop in foreign tourists compared to the previous year. Thisyear, the situation is further complicated by the COVID-19 pandemic, which has limited travel possibilities for many tourists.

However, the company Lastminute.com does not give up. CEO Alessandro Petazzi announced that the company is revisiting its goals for the rest of the year. 'We are working to reduce costs and increase the efficiency of our operations,' said Petazzi. 'We are confident that we can recover our financial results and grow again over the next year.'

The company is also investing in new technologies and solutions to improve the experience of its customers. For example, it has

Evaluating a Ticino job offer? Simulate your net payslip: enter gross salary, marital status and municipality for a detailed breakdown.

Source: laregione.ch