CRAWLEY (dpa-AFX) - Tour operator TUI Travel Plc (TT.L) reported Tuesday a wider loss for the first half, citing lower than expected demand for North African destinations and floods in Thailand. However, revenues grew 5 percent driven by higher volumes and average selling prices in many source markets.
The company said overall trading in the second half is in line with its expectations, with improvement in all key markets, except France.
During the first six-month period, France reported an underlying operating loss of 61 million pounds, wider than 39 million pounds last year, driven by a weaker performance from both the French tour operators and the airline Corsair.
Peter Long, chief executive of the company said, 'The UK delivered a strong Winter performance which attests to our focus on differentiated and exclusive product and being online driven - key elements of our modern mainstream strategy. Our outperformance in this market is continuing into the Summer season and we will ensure that we continue to optimise our position.'
The company said its Winter 2011/12 programmes in all of its source markets have closed out in line with its expectations, with an increase in load factors. In the UK, 47 percent of winter holidays are booked online and summer 2012 trading remains in line with its expectations with continued outperformance of the UK market.
In France, however, the company continues to experience a later bookings curve in challenging trading conditions.
According to the company, jet fuel costs account for about 10 percent of its cost base and anticipates fuel costs to increase by around 10 percent in 2013.
In the first half, the company's loss before tax widened to 457 million pounds from 366 million pounds reported last year. Underlying pre-tax loss was 367 million pounds, compared to a loss of 364 million pounds in the previous year. The company said it has restated its prior-year results.
On a per share basis, loss was 26 pence, wider than 24.9 pence per share a year ago.
Revenues grew 5 percent to 5.45 billion pounds from 5.21 billion pounds last year, driven by organic growth of 4 percent and foreign currency translation and acquisitions of 1 percent.
Organic revenue growth was driven by higher volumes and average selling prices in many source markets, the company said.
The board also proposed an interim dividend of 3.4 pence, up from 3.3 pence paid last year, to share holders of record on September 7, 2012, payable on October 3.
TT.L is currently trading at 189.5 pence, down 0.16 percent, on a volume of 471 thousand shares on the LSE.
Copyright RTT News/dpa-AFX
© 2012 AFX News
