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TUI “solid as a rock”
Thomson’s German parent company TUI stands “solid as a rock” in a highly competitive environment, according to boss Michael Frenzel. The claim by chief executive Dr Frenzel came as Europe’s largest travel group presented an optimistic outlook after a difficult year in 2003. TUI held its own well in 2003, which saw the war in Iraq and SARS hit travel companies worldwide. “Against this uniquely difficult background our group has coped well with the challenges,” said Dr Frenzel. “We stand solid as a rock in a competitive environment.” The company declined to break down financial results for its UK arm, which besides Thomson includes Lunn Poly and Britannia Airways, other than to say turnover and earnings matched 2002 levels. The UK travel businesses are part of TUI’s Northern Europe division which reported profits of 79 million euros despite a 9.7% drop in turnover. Overall, TUI saw earnings rise by almost 60% to 913 million euros, mainly due to the disposal of non-travel interests. The core tourism division saw profits decline to 208 million euros, described as “gratifyingly positive in a market ridden by crises”. The main problem areas were Germany and central Europe where profits dropped by 17 million euros. Looking forward, TUI claimed sales in the past few weeks were 17% ahead of the same period last year, in spite of the Madrid terrorist attacks which the group said had no affect. Overall sales for the year 2003-04 have risen by 4.2% year-on-year with passenger numbers up by 3.7%. For winter 2003-04, sales are up by 6.2% with a 6.3% rise in customers. After a slow start to sales for summer 2004, group sales are 2.4% ahead of last year with passenger numbers up 1.3%. Dr Frenzel said the “persistent increase in the demand for holiday tours throughout Europe continues unbroken,” forecasting that operating results in its tourism division would continue to increase in 2004. Report by Phil Davies
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