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TUI confirms guidance after strong summer season, shares rise
Global Banking & Finance Review®
Company
By Andrey Sychev
(Reuters) -Europe’s biggest tour operator TUI on Tuesday confirmed its annual guidance and mid-term targets after a strong summer season, sending its shares up in morning trading.
Shares in TUI rose 2% by 0735 GMT, hitting their highest level in two months.
TUI forecast a 25% increase in operating profit and 10% revenue growth this year.
The sun continues to shine on holidaymaker TUI,” said Hargreaves Lansdown analyst Aarin Chiekrie, adding that markets see further room for 30% annual profit growth.
Holidaymakers are increasingly turning to package holidays as soaring hotel and flight prices revive demand for all-inclusive deals.
TUI’s summer bookings rose 6% year on year, hitting 14.7 million, or 97% of the programme sold, the group said, as it benefits from the resurgence of packaged holidays as well as the recent bankruptcy of German rival FTI.
It said the start of the winter season was looking promising with bookings rising 7%, hitting 1.8 million, which corresponds to 33% of its whole programme.
TUI is scheduled to report full-year results on December 11.
(Reporting by Andrey Sychev in Gdansk; editing by Friederike Heine and Jason Neely)
Operating profit is the income generated from a company's core business operations, excluding deductions of interest and taxes. It reflects the efficiency of a company's operations.
Package holidays are travel packages that include multiple components such as flights, accommodation, and sometimes meals and activities, offered at a single price.
Revenue growth refers to the increase in a company's sales over a specific period, indicating the company's ability to expand its business and increase its market share.
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