International innovation boosts Momondo Group profits
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Product innovation and an international marketing push have helped the Momondo Group reveal a rise in EBITDA and revenue this morning.
The London-based travel search firm, formerly Cheapflights Media, has seen a 29% increase in revenues to GBP14.5 million in its first quarter results this year, while EBITDA is up 32% to GBP3.2m.
International revenue for meta-technology company momondo, which was acquired in 2011, soared 163% thanks to strong performances in the Nordics, Russia, Western Europe and USA while new sites were launched in Ireland, Poland, Ukraine, China, Hong Kong and Taiwan.
Huge Burge, CEO of Momondo Group told Travel Daily the positive results follow two years of development and investment since acquiring Copenhagen-based momondo in 2011.
“We have been focused on a plan to execute since taking over momondo and been working to create a fantastic product. We knew the benefits of meta-search when we acquired momondo in 2011 and we fell in love with the business for its product and creativity, so we’ve seen the pieces of the jigsaw come together now,” he explained. “Meta-search is seeing triple digit growth and we can only see this accelerating; this is just the start for us and there will be more investment in the future.”
He went on to add he is proud of the companies’ international status. More than 84% of the group’s revenues are now outside of the UK, although traffic continues to rise in the UK, US, Canada and Australia for the Cheapflights websites.
“We’ve really transformed from a UK business to one with a global reach and I believe we are have the largest presence for a British travel business in the US,” said Burge. “We have seen increases across all our markets; it has been a global growth.”
Expansion in the future will focus on South America and Asia while developing its European business too.
Mobile will also be a focus now that 40% of Cheapflights’ visits come from mobiles, while momondo has already been expanding its app offering with the Friends Compass flight app and city guides from momondo places.
More mobile apps and search products driven by big data are to follow in the next 12 months.
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