TUI Travel (London), the parent of Thomson Airways (London-Luton and Manchester), reported its financial results for its fiscal year ending on September 30, 2014. The pretax profit for the fiscal year ending on September 30, 2014 was £362 million ($567 million) compared to £169 million ($264.7 million) for the previous year. Please see the financial analysis below by www.finspreads.com.
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Comments by Peter Long, CEO of TUI Travel:
“We have delivered another year of out-performance against our growth roadmap achieving an underlying operating profit growth of 11% at constant currency rates2. This demonstrates the strength and resilience of our business model in what has been a competitive trading environment for many tour operators and airlines. The combination of our market leadership position, scale, focus on unique holidays distributed increasingly online and our relationship with the customer throughout their whole holiday experience continues to provide a strong basis for sustainable, profitable growth.
“The merger with TUI AG will strengthen and future-proof our combined Group. It will also enhance the certainty of long-term unique holiday growth and reinforce our clear competitive advantage through further control over the end-to-end customer experience. This will mark the start of an exciting new phase of growth, delivering significant opportunities and value to customers, employees and shareholders.”
A financial analyst comment from Fiona, a senior market analyst at www.finspreads.com
UK package holiday company TUI Travel reported a notable 11% rise in underlying profit, above its recently raised guidance of 9%. Pretax profit to the year ending September 30, 2014 was £362 million compared to £169 million for the previous year, achieved on slightly lower revenues of £14.62 billion due to adverse currency translation impacts.. The travel company which is currently merging with German parent company TUI AG, intends to declare a second interim dividend of 20.5p per share once the merger is complete, taking the total annual dividend to 24.5p up from 13.5p last year.
These are really promising results for a company which has previously suffered heavily from reduced consumer spending and changing tastes. However the travel firm seems to have found a winning formula with over 63% of its winter programme 2014/15 already sold with mainstream bookings and bookings for summer 2015 up over 9% on an average price increase of 2%. The market was clearly impressed by the results and projected outlook for the firm and TUI Travel is currently trading up over 3.8% at 445p, adding to the phenomenal growth that they have experienced since May 2012 when TUI Travel´s share price was only 165p.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 737-8K5 G-TAWG (msn 37266) holds short of the runway at Palma de Mallorca.
Thomson Airways aircraft slide show: