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Tui AG on Wednesday hailed a ‘strong performance’ in its first-half and the travel company said its decent showing has continued early in the second. The Hannover, Germany-based firm said bookings for summer are ‘promising’ but added it is mindful of ‘geopolitical uncertainties’. Tui shares traded 2.2% higher at 613.50 pence each in London on Wednesday morning. The stock will soon exit London, after shareholders green lit delisting plans in February. Tui said revenue in the first-half ended March 31 climbed 15% to €7.95 billion from €6.90 billion a year prior. Revenue in the second-quarter alone shot up 16% year-on-year to a ‘record’ €3.65 billion, from €3.15 billion. Its first half pretax loss narrowed to €403.1 million from €646.8 million. For the second-quarter, the loss slimmed to €300.0 million from €376.3 million. ‘Following our strong performance in H1 and as we see the positive trends in our business continuing in H2, we reconfirm our FY24 guidance,’ Tui said. It expects underlying earnings before interest and tax to climb 25% this year, from €977 million, and revenue to improve 10% from €20.67 billion. For the first-half, Tui reported an underlying loss before interest and tax of €182.7 million, narrowing from €395.3 million. Tui said its Hotels & Resorts arm had a ‘record performance’ in the second-quarter. Its Cruises unit also enjoyed its best-ever quarter. The firm added: ‘In Markets & Airlines demand remained resilient with customer volumes ahead for all regions and prices continuing to track higher. Results were however influenced by the absence of the prior year’s positive contribution from Canada, following the sale of the tour operator business.’ The company said bookings for summer 2024 season ‘continue to be promising’. It explained 60% of the season is sold, with bookings to date 5% higher on-year, and prices up 4%. ‘We see the positive trends in our business continuing in H2, but also recognise the current macroeconomic as well as geopolitical uncertainties especially in the Middle East, with 40% of the summer 2024 left to sell,’ it added. Tui shareholders in February backed a motion to delist from London, while upgrading to a prime standard listing in Frankfurt. The shares began trading on the prime standard segment of the Frankfurt Stock Exchange last month. Tui expects inclusion on the MDAX on June 24, with the FTSE 250 constituent exiting London around that time too. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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