Saga aims to double travel profitsPosted: January 15, 2015
By Patrick Whyte,
Over-50s specialist Saga has set out plans to grow operating profit in its dedicated travel division as it looks to “unlock the potential” of its overall business.
The firm, which floated on the stock market last year, is holding a capital market day for investors where it will reveal its new strategy.
Travel is seen as being “vital” to the company’s brand and last year it completed the acquisition of luxury tour operator Destinology. It also owns escorted touring specialist Titan.
It now wants to double Ebitda (earnings before interest, taxes, depreciation, and amortisation) from travel over the next five years.
In order to do this it will “include a greater range of third-party products alongside its own to target different groups of customers more effectively, while also diversifying distribution channels”.
Saga also reported that current trading was in line with market expectations.
Lance Batchelor, group chief executive, said: “The strategy that we outline today shows how we intend to use these competitive strengths to unlock the potential of our existing businesses and to continue to explore new areas of growth, while maintaining our capital-light, cash-generative operating model.
“This will drive growth in our existing businesses, provide scope for investment in new products and underpin a progressive dividend policy.”
Sourced by TTG Digital