Trading momentum strong at TUI Travel after decent winter

Leisure travel firm TUI Travel has maintained its full-year guidance, saying that underlying operating profits should rise by as much as a tenth this year, after a strong winter performance.

Leisure travel firm TUI Travel has maintained its full-year guidance, saying that underlying operating profits should rise by as much as a tenth this year, after a strong winter performance.

While total mainstream customer numbers were down 4.0% year-on-year in the winter 2012/2013 season, sales were up 2.0% as the average selling price (ASP) rose 5.0%.

Ahead of its half-year results for the six months to March 31st, the company said its winter programme ended strongly with improved margins and ASPs across its key source markets.

Trading momentum going into the summer 2013 season is said to be "very strong" with the company particularly pleased with trading in the UK and Nordic regions where it is seeing double-digit revenue growth (13% and 15%, respectively) and a 9.0% rise in customer numbers.

Some 46% of its overall mainstream summer programme has been sold, with total sales up 7.0% year-on-year and ASPs up 5.0%. Customer numbers across the whole group are 2.0% higher.

The firm said it continues to expect to be towards the top end of its guidance for 7-10% growth in underlying operating profit for the 2013 financial year.

"We have a clear roadmap for growth built upon a deep understanding of our industry and customers. Our strong operational performance over winter means we will deliver reduced winter losses," said Chief Executive Peter Long.

"This very strong trading has continued into Summer 2013, leaving us well placed to achieve a full-year performance towards the upper end of our growth targets."

The company's first-half results will be released on May 10th.

Recommended

Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021
What the best-performing investment trusts of the past 20 years can teach us
Investment trusts

What the best-performing investment trusts of the past 20 years can teach us

Forty-two trusts have risen more than tenfold over the last two decades. What made the winners stand out? And how can we identify future outperformers…
12 Oct 2021
Activision Blizzard: a cheap play on videogames
Share tips

Activision Blizzard: a cheap play on videogames

Videogame maker Activision Blizzard has been in the news for the wrong reasons lately. But it has a bright future, says Stephen Connolly.
11 Oct 2021

Most Popular

How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
Inflation is still one of the biggest threats to your personal finances
Investment strategy

Inflation is still one of the biggest threats to your personal finances

Central bankers and economists insist inflation will be gone by next year. We're not so sure, says Merryn Somerset Webb. So if you haven’t started to …
1 Oct 2021
How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021