MyTravel issues profit warning |
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Published
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Wed, 13 Sep 2006 12:35
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LONDON: Travel company MyTravel Group said Wednesday its annual profit would be less than forecast earlier as it faced difficult business conditions.
The company said its operating profits would be in the expected range of 55 million pounds to 60 million pounds, compared to previous projection of 75 million pounds and 85 million pounds. It said its U.K. operations may not return to profit.
Chief executive Peter McHugh said the U.K. business is not expected to return to profit this year although there has been substantial and continuing progress in turning around the business. In spite of the security alerts, fuel and foreign exchange rate hikes as well as terrorism-related incidents in Turkey and Jordan, the U.K. performance is expected to improve from a 27.4 million pounds operating loss in 2005 to a 10 million pounds to 15 million pounds loss in 2006, he said.
The company said bookings are slightly up in Northern Europe and there are improved margins. Bookings in North America too are encouraging though at an early stage, it added.
The firm is speeding up its cost cutting program in the U.K., which includes reducing marketing spending and travel. McHugh expected the company to turn around by 2007.
The company also said it expected a pretax profit of 40 million pounds to 45 million pounds for the full year, its first annual profit since 2001. It had a loss of 17.4 million pounds in 2005.
MyTravel shares were down were down 18 per cent at 165 pence, valuing the group at around 750 million pounds.
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NASDAQ
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1445.56 |
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2008-12-05 ) |
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DUPONT
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