Foreign currency giant Travelex has reported higher sales and profits for the three months to August on the back of a busy summer at UK airports.
The group, which has 1,000 foreign exchange bureaux and 500 cash machines globally, said second quarter sales were up 6% while underlying earnings rose 2%, boosted by strong performances in the UK, Europe and US.
Heathrow saw record passenger numbers in July, and Travelex saw a strong start for a new service that allows customers to buy money online and pick it up at the airport.
The summer update came as the group issued first-half figures to June that showed revenues rose by 9% to £356.5 million, with underlying profits ahead by 17% to £49.9 million in spite of “challenging global trading conditions”. Internet sales were up by 32% during the period.
Despite the impact of the strong euro on inbound demand in Europe, Travelex said its operations in Switzerland, Italy and the Czech Republic did well.
Chief executive Peter Jackson said that uncertainty over the euro was more likely to have an impact on its corporate payments side rather than the airport business as leisure travellers tended to book trips well in advance.
Travelex sold its corporate payments business to Western Union in July for £606 million, but the deal will not complete until the last quarter of the year.
Jackson said the company was relaxed over a super-complaint issued by consumer group Consumer Focus against foreign currency suppliers, suggesting the main thrust of an inquiry was aimed towards the banks and credit card groups, rather than independent operators.
Consumer Focus wants clearer explanation of the exchange rates offered by bureaux de change, but Jackson said advertising standards and guidelines already controlled what it was allowed to include in its marketing.