The travel division accumulates 50% of turnover, although insurance is the one with the most benefits
The British tour operator Saga has reported net profits for its 2017 fiscal year, which ended on January 31, of 137.5 million pounds (157.6 million euros), 12.6% less than the previous year.
Last year, the group’s total turnover exceeded 860 million pounds (986.1 million euros), representing a decrease of 1.3% compared to 871.3 million pounds (999.1 million euros) ) that entered in the fiscal year that ended in January 2017.
Although the gross profit before taxes increased by 1.4% to 190.1 million pounds (217.9 million euros), the operating result fell by 7.6% and stood at 178.7 million euros. pounds (204.9 million euros) compared to 187.4 million pounds (214.9 million euros) in the previous year.
The CEO, Lance Batchelor, stressed that they are in a “challenging market” but that despite this have achieved some “consistent” with the forecasts. Batchelor has also stressed that the group continues to “develop the long-term strategy” and shows that they already have 500,000 customers within their membership program.
The tour operator, which also has branches of business dedicated to insurance, pensions or investments in other companies, has highlighted that it transported 208,000 passengers with their tour packages. Looking ahead, the company has ensured that it has already fulfilled most of its reserve prospects for the fiscal year ending in January 2019.
Saga stressed that his efforts to create “higher value products” have been affected by a decrease in the number of passengers transported, “mainly due to the cancellations that followed the collapse of Monarch Airlines.”
Of the total passengers transported, 24,000 corresponded to cruises (+ 14.3%). The bulk of its passengers (those transported by plane, train or road) suffered a decrease of 3.2%, to 184,000, due to flight cancellations.
By segments, travel accounted for more than 50% of turnover, up to a total of 448.8 million pounds (514.4 million euros), an improvement of 3.9% compared to 432 the previous year despite the decline in total billing.
However, while the operating result of the insurance division reaches 209.4 million pounds (240 million euros), the travel division only reaches 18.1 million pounds (20.7 million euros).