TUI Travel PLC has announced a 5 per cent year-on-year growth in underlying operating profits to £287 million - £10 million ahead of market consensus.
The tour operator, formed from the merger of Germany's TUI and First Choice Holiday, said the growth was largely driven by the group’s specialist sectors which grew 36 per cent to £129 million.
Meanwhile the mainstream sector fell by 12 per cent to £162 million due to cost and yield pressures in the UK and Germany .
Despite the drop, TUI Travel chief executive Peter Long said trading for winter 2007/08 and summer 2008 remains strong while UK mainstream trading is up 5 per cent for winter and 11 per cent for summer.
"As we approach the key booking period for both Winter and Summer 2008, we are encouraged by our performance to date and the ongoing level of demand for our portfolio of package and specialist holidays," commented Long.
"The integration programme continues to advance as planned, with excellent progress made in the UK and across other businesses . By delivering both underlying growth and synergies, we are building a platform from which we can deliver sustainable long-term earnings and margin growth."
The group, which joins the FTSE 100 index on Christmas Eve, said it remained confident of meeting analysts' expectations for the current financial year when consensus forecasts point to operating profits of £370m-£380m.
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TUI Travel Reveal 5 Per Cent Rise In Underlying Profits Fri, 14 Dec 2007      Recommended linksGlobal Travel PortalPre-travelling tips Travel insurance providers Travel Agents Quick Enquiry TUIs Online Booking Conversion Rates Soar Travel Agent Finder Low cost deals on City Breaks |
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