On The Beach Group has reported a 56% drop to £400,000 in revenue for its international division for the half year ended March 31, 2019.
The U.K.-based online travel agency divides its operations into four units with onthebeach.co.uk and sunshine.co.uk, Classic Collection Holidays, Classic Package Holidays and international.
Losses within the international unit, which includes Nordic sites ebeach.se, ebeach.dk and ebeach.no, have been offset by a 75% decrease in marketing spend.
According to a statement, the loss was mainly down to the failure of Primera Air in October 2018.
Revenue for the whole group was up 41% to £63.5 million for the six-month period, while gross profit increased 5% to £47.5 million.
Adjusted pre-tax profit came in at £15.7 million, a 14% increase year-on-year.
For onthebeach.co.uk and sunshine.co.uk, revenue increased 11% to £44.6 million with revenue after marketing up 12% to £25.6 million.
The company says it has deceased the percentage of revenue spent on marketing to 43%.
It also says branded and free traffic now represents 68% of overall traffic.
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Additional highlights for the period include the launch of an agents-only online portal for Collection Package Holidays in March 2019 at a cost of £500,000.
OTB Group chief executive Simon Cooper says that uncertainty surrounding Brexit has ”impacted consumer appetite for booking holidays.”
The company also says it is seeking further “enhancing M&A opportunities” following its acquisition of Classic Collection for £20 million in August 2018.