Follow
While finalizing its merger with TUI AG, TUI Travel reported forecast-beating underlying profits last Thursday.
The British travel group was able to record an 11% rise in underlying operating profits last September which is equivalent to 654 million pounds, an increase that is way higher than the average analysts estimate of 640 million pounds which resulted from the sales from its higher margin, exlusive holidays.
TUI Travel and its biggest shareholder TUI AG agreed on a 6.5 billion euro merger last September to put together all their efforts in making the company the largest leisure tourism group in the whole world.
With many brands inluding Thomson and Airtours, TUI Travel stated that it was happy with the current trading with average selling prices that went up by 1%, with 63% of holidays sold and with 9% higher 2015 bookings for the UK business.
Meanwhile, the company’s rival Thomas Cook said on a statement a week ago that the current trading environment proves tough so it doesn’t expect more than moderate growth.
It can be remembered that TUI made a statement in October saying that its operating profit would go up by around 7 percent.
TUI said however that its Russian venture impacted the 2014 results. It blames this to the weakness of the rouble and it warned that it doesn’t see any let-up in 2015.
