Tui Travel succeeded in reducing its operating loss by 14% in the first half of 2013. Operating loss reduced by £43m to £274m, with an underlying H1 operating loss of £289m (H1 2012: loss of £317m), which excludes acquisition related expenses, impairment of goodwill and interest and taxation of results of the Group’s joint ventures and associates.
Revenue during the period dipped by 1% over last year to earn £5.397bn. The UK & Nordics source markets delivered H1 revenue growth of 5% and 10% respectively. UK underlying operating loss reduced by £22m to £103m2 and Nordics operating profit by £14m to £36m2.
France operating loss reduced by £11m to £50m.
The group’s business improvement programme is progressing to plan with £17m of cost savings delivered, says the group.
For Summer 2013, Tui has 58% sold with improved margins and average selling prices in key source markets, especially significant growth in profitable market share in the UK. Summer 2013 sales in the UK and Nordics, are up 13% and 14% respectively. Full year underlying operating profit growth anticipated to be at least 10% on a constant currency basis.
Peter Long, Chief Executive of TUI Travel PLC, says:“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. 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.”
Tui reduces operating loss during H1 2013
