DAVY VIEW

Lastminute.com has reported Q2/H1 headline adjusted EBITDA of €11.2m (-23% yoy). Despite the Q2 impact from the Middle East conflict, which brought consumer uncertainty and a shift in booking patterns, the group delivered H1 revenue growth of 4% (Q2: -2%). Gross profits were down 8% in the impacted Q2 as a result of margin compression from increased marketing spend to stimulate bookings as booking patterns shifted. The company has revised its full-year outlook downwards to +5% revenue growth and +mid-single-digit to 10% adjusted EBITDA growth (previously +10% for both). Recent trading momentum has improved, with travel recovering from the softer April and May period and positive trends already visible in June and July trading. We expect to revise our estimates in line with company guidance.