ebookers.com expects to release its Q3 results on Monday, but has given estimates of what we can expect.
Negative EBITDA (Negative earnings before interest, tax, depreciation and amortization) has been reduced by over GBP 5 million in just one quarter. It has improved to a loss of GBP 0.5m for Q3 compared to a loss of GBP 5.7m for Q2 (ending June 2001).
Including net interest income and exchange gains (EBTDA) this figure improves to a profit of GBP 0.2m for Q3 compared to a loss of GBP 5.9min Q2, an improvement of over GBP 6m in just one quarter.
Losses before taxation are also on track for major reduction in just one quarter. In Q2 2001, ebookers posted losses of GBP 8.6m. In Q3 this loss has fallen to GBP 2.6m, an improvement of approximately GBP 6m in just one quarter. All estimates in UK GAAP and unaudited*
Ebookers cite a unique business model that produces results, namely:
(1) Negotiated fares. ebookers has the biggest online negotiated fare content in Europe. ebookers has special negotiated arrangements with airline, hotel and car hire companies giving customers discounts of up to 65% and ebookers high margins.
(2) Management with travel background. ebookers` management has long experience in the travel industry, with extensive experience of managing costs.
(3) Europe`s biggest agency. ebookers has bigger sales and operates in more countries than any other online travel company. European travel products have higher margins than the US, and Europeans take more holidays.
(4) In-house customer care. ebookers carries out its own customer fulfilment in 9 languages allowing it to retain all margins.
Dinesh Dhamija, CEO ebookers.com commented: “These estimates are testament to the strength of ebookers business model and of European online travel. Through our aggressive management of costs we have delivered this outstanding quarterly improvement despite the events of September 11.”