Profits soar for top Europe tour operator
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LONDON, Dec 4 AFP
December 04 2012, 9:29PM
TUI Travel, Europe's biggest tour operator, says annual net profits have rallied 62 per cent, boosted by deep cost-cutting and keen demand in Britain, the Nordic region, Belgium and Canada.
Earnings after taxation hit STG138 million ($A214 million) in the year to September 30.
The London-listed holiday firm said, however, that revenues slid two per cent, hit by unfavourable foreign exchange movements and the impact of unrest in the Middle East.
TUI Travel said annual profits were "driven by strong performances in the UK, Nordic region, Belgium, and Canada as well as the delivery of STG42 million ($A65 million) cost savings through the business improvement program."
"Overall trading remains positive across all our major source markets with the exception of France where the environment remains extremely challenging," TUI Travel said.
"Strong trading momentum from summer 2012 has continued into winter 2012/13, particularly in the UK and the Nordics, where our unique holidays are selling well and growth in our direct distribution channels continues to have a positive effect on margins.
"While still early in the booking cycle, the summer 2013 program in the UK, Nordics and Germany is showing strong signs of growth with additional capacity in the UK and Nordics."