LONDON, Oct. 4, 2004 (PRIMEZONE) -- At a presentation for analysts and shareholders to be held later this afternoon, lastminute.com will confirm that its current outlook for Quarter 4 2004 is in line with the guidance set out in the announcement of 9 August with EBITDA likely to be towards the lower end of the range.
Management will also present detail on the timing, quantum and areas where the announced 10% cash cost savings, excluding travel agents commission, will be delivered in the 2005 financial year. The total savings in financial year 2005 will amount to around 13 million. The annualised savings will amount to approximately 16 million. The cash cost of achieving these savings will amount to 9 million including the previously announced exceptional item of 5 million relating to the integration of OTC. The majority of these costs will be recognised as exceptional items in the current Quarter 4 2004.
Management will also demonstrate the scalability of the business model by showing how illustrative 2004 pro-forma financials together with the cost savings identified and assumptions as to TTV growth would lead to 55 million EBITDA for the financial year to 30 September 2005.
Brent Hoberman, CEO commented, "Despite continued challenging trading conditions in the industry during the summer quarter, we are pleased to see organic growth accelerate for the Group. Next year's EBITDA growth will be underpinned by significant cost savings across our combined businesses, the details of which we are confirming today."
A copy of the presentation material to be used by management will be available on the lastminute.com/ir website from 3.00 pm BST today.
Enquiries:
lastminute.com +44 (0) 20 7802 4498 Brent Hoberman - Chief Executive Officer David Howell - Chief Financial Officer
The Maitland Consultancy +44 (0) 20 7379 5151 Brian Hudspith Emma Burdett
This press release may contain forward-looking statements. Expressions of future goals, including without limitation, "intend," "will," "should," "are well on track," "expect" or "continue," and similar expressions reflecting something other than historical fact are intended to identify forward looking statements. The following factors, among others, could cause lastminute.com's actual results to differ materially from those described in the forward looking statements: management of lastminute.com's rapid growth; speed of technological change, including introduction of new architecture for its web sites; systems-related failures; the ability to attract and retain qualified personnel; adverse changes in lastminute.com's relationships with airlines and other product and service providers; adverse changes in the services provided by lastminute.com's suppliers; lastminute.com's ability to attract and develop an adequate international supplier and customer base; potential adverse changes in its commission rates; the effects of increased competition; risks relating to operating Internet -- based commerce in foreign markets; lastminute.com's dependence on its ability to establish its brand; lastminute.com's ability to protect its domain names and other intellectual property rights; legal and regulatory risks; a slow down in the continued growth of e-commerce and the internet; unforeseen events affecting the travel industry and factors adversely affecting lastminute.com's share price. All such forward-looking statements are made in reliance on the safe harbour provision of the US Private Securities Litigation Reform Act of 1955. These and other risk factors are described in detail in lastminute.com's shareholder circular dated 8 September 2000, which has been filed with the Securities and Exchange Commission, USA and the Financial Services Authority, UK.