First Choice shows losses, outlook good

First Choice has said that its losses have widened in the first half of the year, yet the outlook for the summer months looks strong.
Pretax loss for the six months to the end of April amounted to 78.2 million GB pounds, compared with a loss of million GB pounds the year before.

Higher marketing and sales costs as well as acquisitions have cut in to the bottom line. The company told the BBC that it plans to move away from its short break business, which does not make the firm money.

Its Mainstream Holidays Sector revenues are up 4 pct with long-haul revenues and bookings up 38 percent and 30 percent respectively, while margins remain strong.

First Choice’s Specialist Holidays Sector rate of sale and margins for the high season are up against last year.

“We are very confident about trading for the summer ... Our holidays are selling very quickly,” CEO Peter Long said on CNBC Europe television.

ADVERTISEMENT

Long has also said that the company remains focused on ‘a combination of organic and acquisition-led growth’.

‘The acquisition pipeline of specialist businesses is strong and will help us build significant leadership positions in the segments of the marketplace we find attractive,’ he said.
——-