Growth in Irish demand for overseas holidays led to record annual results at the First Choice-owned Falcon and JWT tour companies in Ireland. Mr Peter Long, chief executive of First Choice, said the number of overseas holidays taken through Falcon and JWT rose by 15 per cent to more than 300,000 in the 12 months to the end of October. Main holiday destinations were the Balearic Islands and Canaries. But there was also strong demand for new destinations, notably Mexico.
"We have increased our capacity in response to rising demand," said Mr Long, attributing the growth to the buoyant economy and the reputation of Falcon and JWT in the Irish market.
Financial results of First Choice detail a £3.1 million sterling (€5 million) reduction in 1998-99 pre-tax profit to £46.9 million on turnover up £220 million at £1.46 billion (€2.34 billion). The profit decline includes £6.2 million exceptional costs incurred on the aborted merger with Kuoni of Switzerland and defence against the take-over bid from Airtours. Also, the group's fledgling retail division suffered £7.4 million losses.
Holiday sales through the Internet will be undertaken through Holiday Hyper-markets following purchase of outstanding shares owned by joint venture partners. Overall, margins on winter holidays are likely to show a slight deterioration. But UK and Irish bookings for summer 2000 are 13 per cent ahead of this summer on a like-for-like basis. Dividends are up by 12.5 per cent to 3.6p per share. First Choice shares rose 4p to 137p.
