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Tui reports record revenue and earnings in the first quarter
Tui has reported a record fiscal first quarter ahead of a key vote on its plan to exit the London Stock Exchange in favor of Germany.
The travel giant said it recorded revenue of a historic €4.3bn (£3.67bn) for the period 1 October 2023 to 31 December 2023, amid surging travel demand following last year’s post-Covid rebound.
Underlying earnings before interest and taxation (EBIT) rose to positive €6m (£5.1m) for the first time, widening from last year’s loss of almost €159m (£135.4m).
Shares jumped more than three percent on the announcement.
Europe’s largest travel operator maintained its full-year guidance for 2024, despite continued geopolitical uncertainty in the Middle East and disruption to European airspace. Underlying EBIT is expected to grow by at least 25 percent year-on-year, with revenues expected to grow by 10 percent. cent.
Tui said current bookings for summer 2024 “remain promising”, with five million bookings up from last year and 32 per cent of its program sold.
It comes ahead of this morning’s highly anticipated annual general meeting, at which shareholders will vote on whether TUI should delist its shares from the London markets.
The Hanover-headquartered company currently has dual listings in Frankfurt and the UK, but announced in December that it was considering a move to Germany.
Its top executives have supported the decision, with two shareholder advisory groups Pirc and US-based ISS also following suit. 77 percent of Tui’s shares were listed on the German register last November, while 10 percent were listed in London.
In its report this morning, the travel group urged shareholders to leave London, arguing that moving its primary listing would simplify its trading structure, as the majority of shares are already traded in Germany.
The AGM is scheduled for 10:30 am today. A vote to leave would be another blow to London’s troubled equity markets.
Russell Pointon, consumer director at Edison Group, said: “Revenues grew strongly across all sectors, indicating strong demand for travel and holidays even amid the darkest months of the live-in crisis.”
“However, amid positive financial results, TUI shareholders are set to vote on the company’s plan to delist from the London Stock Exchange, a move supported by the board but subject to shareholder approval at today’s upcoming AGM. With market attention increasingly shifting from TUI’s results to its listing status, all eyes are on this key moment in the company’s trajectory.
Tui shareholders to vote on travel giant’s London Stock Exchange exit plan
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