TUI reduces losses
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TUI Travel has announced it cut losses by 9% in the six months up to 31 March 2013 compared to the same six months a year ago.
The travel company reduced its operating loss from GBP317m (USD489m) to GBP289m in the six months, or down to GBP274m when keeping exchange rates the same as the previous year.
Its net debt improved to GBP680m from GBP979m with free cash outflow of GBP774m up from GBP233m.
In the UK market its losses were down GBP22m to GBP103m with revenue up 5%. Sales of its ‘unique holidays’ were up 15% for this summer with its online sales now accounting for 42% of its holidays sold here.
In the bedbank sector TUI saw 14% growth during the period for summer 2013 and has generally seen strong sales from the region with a 13% increase. The group expects a 10% underlying profit growth by its full year and has so far sold 58% of summer 2013 holidays.
“Our strategy of focusing on unique holidays and putting our customers at the heart of our business continues to deliver strong growth. With our market leading brands and scale we have the ability to give our customers great holiday experiences, at terrific value, in a segment of the market that is increasing in popularity,” said Peter Long, Chief Executive of TUI Travel PLC. “Our drive to Modern Mainstream is contributing significantly to our outperformance in a number of markets where we are achieving strong booking volumes and improved margins. Given current trading and the visibility we have within our businesses we anticipate full year underlying operating profit growth of at least 10% on a constant currency basis.”