Feeds

Ebookers sales up but jobs down

Turns a profit in skinny quarter...

  • alert
  • submit to reddit

High performance access to file storage

Ebookers increased sales for the first quarter by 47 per cent and is confident about the year ahead. Despite the positive results the company is cutting 270 jobs, 200 in the UK and 70 in India, as business processes are increasingly automated. The cuts should save ebookers £2.5m this year.

Gross sales for the quarter were £160m and the online travel agent made a profit of £1.25m - up from a loss of £4.9m for the same period last year. Margins for its mid and long range flights were just over 9 per cent. Short haul flight margins fell to as low as one per cent.

Ebookers has nearly finished its JD Edwards back office integration programme and is beginning mid-office integration. As a result of acquisitions ebookers has four different mid-office systems. It expects good savings from the unified system by the end of this year.

ebookers believes its strategy of buying offline travel companies and stripping out costs by converting them to web-based businesses will continue to deliver profits. It bought Travelbag, a big UK agent specialising in longhaul travel, in 2003. Travelbag now takes 54 per cent of its bookings online, up from 16 per cent before acquisition.

Ebookers long-term aim is to cut net operating costs to 8.5 per cent of gross sales. ®

Related stories

BA prepares to flee opodo
Axe falls on Ebookers jobs
Ebookers chief defends offshoring

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.