Lastminute.com says it will continue to make progress, despite the uncertain economic climate.
Its first-quarter figures show underlying losses dropping from £7.2 million a year ago to just £3.84 million.
Subscriber numbers are up 48.7 per cent too, at 6.8 million, while total transaction value has grown by 174.4 per cent to £87.1 million from £31.7 million a year earlier.
Group managing director Ms Martha Lane-Fox says the uncertain economic climate favours the group, because customers postpone booking their holidays and are more likely to turn to a service that offers last-minute bookings.
Ms Lane-Fox says there is a "misperception" that lastminute.com is a travel business, when 40 per cent of transactions - by volume, not value - are non-travel items.
She believes the group's business will continue to expand as e-commerce and use of the Internet grows, and that this will drive performance through 2003.
PA