Tui reports 19% rise in third-quarter profits

Tui reports 19% rise in third-quarter profits

Tui reported “a strong performance” in third-quarter results with group turnover for the three months to June up 16% to €4.94 billion and underlying operating profit up almost 19% to €191 million year on year.

The group recorded the first profit for the first nine months of the year in its history.

Chief executive Fritz Joussen forecast “another good year for Tui Group”, saying: “We are delivering growth and reiterating our guidance.

“We expect turnover growth of more than 3% [and] our underlying operating result is expected to grow by at least 10% in the full year.”

He reported; “Late bookings reflect a renewed popularity of Turkey and North African destinations.”

The Group again reported very strong demand for holidays to Spain, Greece and Italy, for long-haul travel and for cruises.

Joussen said: “This good performance reflects our successful transformation and focus on own hotel and cruise brands.

“We have significantly reduced the seasonal swing of our business. For the first time, we have delivered a positive operating result for the first nine months of a financial year. Tui is on track, both strategically and operationally.”

The group reported UK bookings “as high as the previous year despite the weakness of sterling”.

UK summer bookings remain flat, but “at the high level recorded in the previous year despite the price inflation”.

Customer numbers in the UK in the quarter were up 5% year on year due to the later timing of Easter.

Tui reported “a strong performance” in Germany and the Nordics region, with the latter “benefiting from the TUI rebranding and an improved trading performance from the new yield management system”.

German customer numbers were up 11% year on year.

Joussen reported current trading for summer 2017 as in line with expectations, with revenue for the season across the group up 8% year on year and customer numbers up 4%.

Tui reported: “Lower cumulative bookings for some destinations including Turkey, offset by strong demand for Greece, Spain, the Cape Verde Islands, Croatia, Italy, Bulgaria and long-haul destinations including the Caribbean.”

More:

Tui Group completes disposal of Hapag-Lloyd shipping shares

Special Report: Tui Care Foundation eyes ‘long-term change’

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