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Youtravel doubles turnover to £70m
Monday, July 27, 2009 Youtravel.com has more than doubled its UK sales turnover in its second year of trading and claimed it was on track to make a significant profit in its third year. Year-end turnover increased from £32 million to £70 million in October 2008, with a “substantial improvement” in earnings before interest, tax, depreciation and amortisation. Passenger numbers doubled to half a million in year two with 95% bookings made through the trade. Graham Nichols, the group’s managing director, said: “Youtravel.com reached break-even in only its second year of operation excluding some small one-off costs. “We have now reached scale and have excellent market share in the UK while maintaining our independence and service commitment to our customers. “Our aim is now to achieve the same in our international markets. This means that we are able to diversify our business and spread the risk which is an important factor in today’s climate.” Dimitrios Tzililis, portfolio director of Youtravel’s major shareholder Barclays Ventures, said: “We have been impressed with the company and how it has navigated the market, which has presented challenges for the entire travel industry. “We work closely with the board in shaping the future strategy of the business, and we have been impressed by the encouraging signs of booking levels returning to, and overtaking, those of last year from May onwards. Nichols added: “As we enter our fourth year, we will concentrate more on profit rather than such rapid growth in the UK. “We are, however, expecting to pursue aggressive expansion programmes in our international markets which have higher margins and huge potential. “We are on-track to make significant profit in our third year ending October 2009 thanks to a more streamlined operation, exclusive product and a buoyant late-booking market this summer.” He said June and July’s sales figures were 18% up year-on-year. • Youtravel rejects 'backstabbing' rumours (2 Jul 2009) • Youtravel confident of lates revival (24 Jun 2009)
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