Feeds

Ebookers sales up but jobs down

Turns a profit in skinny quarter...

  • alert
  • submit to reddit

The Power of One Infographic

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

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.