TUI confident of full-year profit
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TUI Travel PLC said it is confident of reaching 10% growth in full-year profit this financial year with a pleasing UK performance for the first half.
The group hopes to see an increase of 7-10% in operating profit for its financial year, although its losses deepened from GBP289 million to GBP298m for the first half of the year.
However the loss excluding Easter improved 4% to GBP277m.
Online bookings have gone up for the tour operator and now account for 38% of sales compared to 34% year-on-year, while its unique products continues to drive the business now accounting for 70% of sales.
TUI said it was ‘pleased’ with its UK performance and had an ‘excellent’ half year for Germany, while a restructure in France has helped reduce losses.
Its summer holidays are currently 60% sold with higher average selling prices.
“We have delivered a strong performance in the first half, driven by our flexible and resilient business model. Demand continues to grow for our unique holidays and we have seen strong growth in online bookings, a key element of our digital transformation. The UK is delivering excellent performance due to market leadership and uniqueness of offering,” said Peter Long, chief executive of TUI Travel. “Overall, we are pleased with summer 2014 trading, against strong comparatives, and we remain confident of delivering 7% to 10% growth in underlying operating profit during the year on a constant currency basis.”
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