lastminute.com group provides update on economic effects from its 2015 integration process
OREANDA-NEWS. lastminute.com group, a European leader in the online travel and leisure industry, today announced a financial update post completion of the integration of lastminute.com into the former Bravofly Rumbo Group.
The main objective of the integration was to ensure a business model that is able to generate long-term sustainable value through technology and process efficiency. The Group met the objective earlier than planned and is now able to realise the expected cost synergies in full. Both the simplification of the IT architecture as well as the related UK workforce reorganisation, have started to produce financial benefits as of 1st January 2016. The ongoing costs, including OPEX and CAPEX, will be reduced on annual basis by approximately € 26 million (€ 24 million effect on 2016).
In December, the Group announced a strategic update to align the governance and organisation structure and build the future growth plans on an even more comprehensive business model. To bring this strategy to life, part of the savings mentioned above will be reinvested to recruit talent with dedicated skills and expertise: firstly, within IT to strengthen the Groups' re-focus on product development; secondly, within Content, Media Sales, Advertising and Brand Strategy to unlock the full potential of the new Media Business model.
Update on FY2015 revenue target
The Paris terrorist attacks in November 2015 had a negative impact on the European tourism industry. Thanks to its diversified business model, which is built on an innovative offering of travel and leisure products, lastminute.com group has stemmed such effect to around a relatively limited -2% on € 255M revenue target set for 2015. While incidents of this nature obviously have a short-term impact, this experience suggests once more that people continue to travel and primarily shift destinations - something the Group is prepared for.