TUI’s profits gain on divestments

31 March 2004

HANOVER – Travel giant TUI reported Wednesday that it achieved pre-tax profits of EUR 913 million in 2003, up 60 percent, mainly thanks to the divestment of non-core holdings.

The company, continuing its conversion from an industrial concern to a purely travel and tourism operator, said its core business of tourism saw pre-tax profits plunge nearly 40 percent to EUR 208 million.

Group turnover in 2003 came to EUR 19.2 billion, down 5.4 percent from the year before.

TUI managed the overall earnings gains thanks to the sale of its energy division, along with a rise in profits from its logistics business operations.

Europe’s largest travel concern also said that so far the terror bomb attacks in Madrid had not hurt its business.

The upturn in vacation bookings in Europe was continuing unabated even after the Madrid bombings, with turnover in recent weeks running 17 percent higher than a year ago. Booking turnover for the summer season at the moment was 2.4 percent higher.

DPA

Subject: German News