TUI's operating profit increase of 12% to £526m
TUI released its preliminary results for the year ended 30 September 2012 ans it is well positioned for continued growth.
Key financials Year ended 30 September:
1. Underlying operating profit excludes separately disclosed items, amortisation of business combination intangibles, acquisition related expenses, impairment of goodwill and available for sale financial assets, predecessor accounting for Magic Life in 2011 and interest and taxation of results of the Group’s joint ventures and associates
*Constant currency basis calculated by translating the 2012 results at 2011 exchange ratesPeter Long
- Record year of profit and improved operational efficiency
- Operating profit increase of 12% to £526m on a constant currency* basis. Underlying operating profit of £490m (2011: £471m), an increase of 4%.
- Record Mainstream underlying operating profits, on a constant currency* basis, in all markets with the exception of France and Southern Europe.
- Outstanding performance in the UK with a record underlying operating profit of £197m (2011: £149m) and operating profit margins of 5.4%, up from 4.2% in the prior year.
- Business improvement programme outperformance with £42m delivered in the year.
- Strong underlying earnings per share growth of 9% to 25.8p (2011: 23.6p). Statutory earnings per share grew by 62% to 12.5p (2011: 7.7p).
- Final dividend increase of 4% to 8.3p per share (2011: 8.0p), resulting in a full year dividend of 11.7p per share (2011: 11.3p).
- Modern Mainstream strategy delivering results
- Sales of higher margin unique holidays increased by three percentage points to 65% of Mainstream holidays.
- Online sales up three percentage points to 33% of Mainstream sales. Direct distribution up two percentage points to 65% of Mainstream sales.
- Significant international expansion across Online Accommodation
- Online Accommodation profits up 3% to £35m, including an £11m investment in our Accommodation OTA.
- Accommodation Wholesaler continues to consolidate its global leadership position; TTV growth of 13% to £1.4bn.
- Accommodation OTA – Continued investment in high growth markets; TTV growth of 4% to £447m including AsiaRooms growth of 25%.
- Clear strategy continuing to drive strong trading momentum
- Very encouraging Winter 2012/13 trading.
- Strong Summer 2013 bookings in the UK, Nordics and Germany. Significant growth in profitable market share in the UK.
- Clear roadmap for sustainable future growth with an annualised underlying operating profit growth rate of between 7 to 10%.
, Chief Executive of TUI Travel PLC, commented: “The year has been one of many successes. We have delivered record Group profits while the UK achieved outstanding results both in terms of profit and margin all against a backdrop of continued economic uncertainty. Our proven strategy continues to evolve and drive strong trading momentum throughout the Group. Overall, with the exception of France, trading for both Winter 2012/13 and Summer 2013 is very encouraging.“We are today pleased to announce the next stage of our strategic development. This roadmap for growth, built on our detailed understanding of the market and robust business models, means that we are well placed to continue to deliver long-term sustainable growth, which in turn, will drive further value for both our shareholders and our customers.”