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TUI Travel Posts Higher Profit As Strong UK, Germany Demand Continues

8th Aug 2014 06:26

LONDON (Alliance News) - TUI Travel PLC said Friday it continues to see strong trading in the UK and Germany, and stronger demand for its all-inclusive package holidays and bookings taken online, all of which drove an increase in its operating profit in the third quarter of its financial year.

The owner of Thomson and First Choice, made an underlying operating profit of GBP112 million in the three months to June 30, up from GBP76 million a year earlier, helped by a GBP23 million boost from a later timing of Easter in 2014.

The underlying results exclude items such as acquisition-related expenses, goodwill impairments and taxation of its joint ventures.

On a like-for-like basis, which excludes the timing impact of Easter and foreign-exchange movements, underlying profit increased by GBP16 million, or 21%, to GBP92 million.

Revenue in the third quarter saw another dip to GBP3.80 billion, down 2% on last year's GBP3.86 billion, which TUI Travel said was partly due to currency movements.

For the nine months to June 30, TUI Travel said it narrowed its losses, reporting an underlying operating loss of GBP186 million, compared with GBP213 million a year earlier, although revenue fell by 3% to GBP8.99 billion.

"We remain pleased with progress in summer trading, despite strong comparatives, and are achieving higher average selling prices across mainstream overall," sad Chief Executive Peter Long in a statement.

By Rowena Harris-Doughty; [email protected]; @rharrisdoughty

Copyright 2014 Alliance News Limited. All Rights Reserved.


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