Q3 Results Profitable continues to gain strength in the online travel arena as the company reported that gross profit for the quarter ending 30 June grew by 90.9% year on year and 28.5% quarter on quarter to £7.9 million (Q3 2001: £4.1m, Q2 2002: £6.1m).

The customer conversion rate improved to 20.7% from 12.4% in Quarter 3 2001 and from 18.3% in Quarter 2 2002 and cumulative customer numbers since inception are now at record levels, in excess of 1.0 million

Total transaction value for the Quarter grew by 108.4% year on year and 49.8% quarter on quarter to £61.0 million (Q3 2001: £29.3m, Q2 2002: £40.8m)

EBITDA loss reduced to £1.9 million for the Quarter, a reduction of 75.6% year on year and 39.9% quarter on quarter (Q3 2001: loss £7.8m, Q2 2002: loss £3.2m) and loss (before goodwill amortisation and taxation) down 57.0% year on year and 24.5% quarter on quarter to £4.0 million (Q3 2001: loss £9.3m, Q2 2002: loss £5.3m)

There was an operating cash outflow of £3.2 million for the Quarter, a reduction of 62.2% year on year (Q3 2001: £8.6m). The increased operating cash outflow quarter on quarter of £1.9 million is in line with expectations (Q2 2002: £1.4m)


The cash balance grew to £41.5 million at 30 June 2002

Allan Leighton, Chairman, said: “These results demonstrate the further shift towards Group profitability and positive cashflow. All metrics show underlying improvement and development.”

Brent Hoberman, Chief Executive Officer, added: “The integration of Travelselect and The Destination Group is progressing well and will be completed by 30 September 2002. This Quarter has been key in terms of the strategic acquisitions which will add considerably to shareholder value and create a step change in the scale of the business.”

In a related announcement, Linda Fayne Levinson will step down from the board following the Extraordinary General Meeting of the Company on 27th August 2002. Linda has added significant value to the growth of over the last three years and continues to be a great supporter of the business. However, venture capitalists GRP Partners ask their nominated Directors to step down as Directors when the success of their early stage investments is assured.
At 30 June 2002 had over 5.6 million subscribers to its weekly newsletter and had established approximately 15,300 supplier relationships.