TUI confirms forecasts after stronger first quarter

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Anglo-German tourism giant TUI confirmed ambitious full-year growth forecasts Tuesday, after cutting losses in the difficult first quarter of its financial year.

TUI, based in Hanover but listed on the London stock exchange, reported a net loss of 58.7 million euros ($72.3 million) between October and December, an improvement of almost 35 percent year-on-year.

Its operating, or underlying result was 24.9 million euros into the red, less than half the size of the loss booked a year before as strong performance in hotels and cruises paid off.

TUI's revenue increased 8.1 percent year-on-year, to 3.5 billion euros -- beating predictions from analysts surveyed by Factset.

The group has shifted its strategy since 2014, leaving behind its traditional tour operator business in favour of owning its own hotels and cruise ships.

Its new model offers higher profit margins and makes the firm less exposed to seasonal variations, showing up in stronger results for the traditionally difficult autumn quarter.

Chief executive Fritz Joussen said the results confirmed the group on its course towards "at least 10 percent growth" in its 2017-18 financial year, on the heels of the 12-percent expansion it achieved in 2016-17.

Bookings were "very good" for this summer, TUI highlighted, especially in European Mediterranean destinations like Greece, Turkey and Cyprus.


© 2018 AFP

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