British TUI before merger: 11 percent increase in profit
TUI Travel, whose many brands include Thomson and Airtours, said it was "pleased with current trading," with 63 percent of winter holidays sold, on average selling prices up 1 percent, and summer 2015
TUI Travel, whose many brands include Thomson and Airtours, said it was “pleased with current trading,” with 63 percent of winter holidays sold, on average selling prices up 1 percent, and summer 2015 bookings for the core UK business 9 percent higher on average prices up 2 percent.
British travel group TUI Travel, weeks away from completing a merger with TUI, reported an 11 percent rise in underlying profits.
The company and TUI, its biggest shareholder, reached an agreement in September on the terms of a EUR€6.5 billion merger to create the world’s largest leisure tourism group. The deal will complete on December 17.
In contrast, rival Thomas Cook warned last week that the trading environment was proving tough and it expected growth to moderate. It also replaced its chief executive.
Underlying operating profit for the year ended September came in 11 percent higher at EUR€654 million (USD$1.03 billion) on a constant currency basis, driven by selling more of its higher-margin, exclusive holidays.
TUI had said in October that operating profit would rise by at least 9 percent, the upper end of its previous forecast for growth of between 7 percent and 10 percent.
However, TUI said its Russian joint venture weighed on results in 2014 and warning that it saw no let-up next year.
“Our view on the Russian market is, long term we see a big opportunity — northern hemisphere, harsh winters and customers like to go on sun and beach holidays. So we will look to reduce our operating losses, but we still see a further tough situation in 2015,” chief executive Peter Long told reporters.