Out-Law / Your Daily Need-To-Know

Lastminute.com deals with rival as quarterly losses reach £12m

12 Feb 2001, 12:00 am

The London-based internet travel shop lastminute.com has reported its first quarter financial results showing losses of £11.71 million for the three months to December 2000 and a disappointing increase in subscribers. It has signed a deal with rival travel company Thomas Cook to offer longer term bookings.

Lastminute.com currently offers consumers last minute opportunities to acquire airline tickets, hotel rooms, package holidays and gifts in the UK, France, Germany, Italy, Sweden, Spain, The Netherlands and Australia.

In October 2000, lastminute.com acquired the French Degriftour Group. In January this year, lastminute.com/Degriftour was rated as the most popular on-line travel site in Europe.

The company today announced that it will begin working with thomascook.com. Under the terms of the deal, customers who visit lastminute.com looking for a holiday more than six weeks in advance will be directed to a joint site showing holidays available on thomascook.com. lastminute.com will also be opening its range of products to thomascook.com’s customers and thomascook.com will be one of lastminute.com’s preferred flight partners.

According to lastminute.com’s results, total transaction value for the quarter ended 31st December 2000 was £20.2 million, representing a 53% increase compared to the quarter ended 30th September 2000.

Turnover almost doubled compared to the period ended 30th September 2000 and was over 7 times that in the corresponding period in the prior year. Gross profit for the quarter ended 31st December 2000 was £2.8 million compared to £1.3 million in the previous quarter, an increase of 109%.

However, losses almost doubled to £15.4 million. Part of this loss was attributed to the company’s acquisition of Degriftour. At 31st December 2000, the cash position of the group stood at approximately £70.9 million which it says will be sufficient to reach profitability.