TUI first quarter losses narrow
TUI’s first quarter loss narrowed as revenue grew as the Anglo-German travel firm said it expected to grow underlying earnings 10% for the full year.
Tui AG
€6.68
16:40 19/04/24
The FTSE 100 company plans to continue making disposals as part of its growth strategy, having sold Hotelbeds Group in September and on Monday TUI announced it would sell Travelopia, its portfolio of specialist travel brands to KKR for around £325m.
The company is also in talks with Etihad for the sale of TUI Fly to create a new airline.
With UK bookings remaining significantly ahead of the previous year, quarterly underlying losses before interest, tax and amortisation (EBITA) narrowed 17% to €66.7m, compared to the previous year.
TUI also swung to an underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of €29.8m, from a €7.5m loss, while revenue increased 2.3% to £3.28bn.
Based on the company's performance in the first quarter and current trading, it expects at least 10% growth in underlying EBITA for the full year on constant currency.
The company said: “We have delivered a good operational performance in the first quarter and current trading remains in line with our expectations. We are continuing to deliver our growth strategy, transforming the business as the world's leading integrated tourism business based on own hotel and cruise brands, with further openings and launches planned for the coming year.
"Our scale and integrated business model mean that we remain well placed to deliver our growth strategy, against what continues to be an uncertain geopolitical and macroeconomic backdrop.”
Ian Forrest, investment research analyst at The Share Centre, said: “Today’s news shows that TUI continues to make good progress on several fronts and the confirmation that earnings are still expected to grow by 10% this year was welcome given the high level of uncertainty around at the moment.
"As a result, we continue to recommend the shares as a ‘buy’ for higher risk investors due to the long term growth potential and healthy dividend.”
Shares in TUI were up 5.79% to 1,224p at 1245 GMT.