9th Aug 2018 07:29
LONDON (Alliance News) - TUI AG on Thursday reiterated its annual earnings guidance as it posted a 27% drop in third-quarter pretax profit.
The Anglo-German travel operator also said that summer bookings for the current year are up 4%, with 86% of the programme sold, in line with prior year.
For the three months to June-end, TUI recorded pretax profit of EUR147.5 million, down from EUR203.3 million recorded in the comparative year ago period, on a revenue of EUR5.02 billion and EUR4.78 billion, respectively.
The drop in quarterly pretax profit was blamed upon a decline in financial income and increased cost of sales. The rise in revenue was credited to 5% growth in customer volumes, good portfolio performance, and additional hotel and cruise ship capacity.
Adjusted earnings before income, taxes and amortisation - the company's preferred profit measure - fell 18% to EUR193.4 million in the quarter from EUR235.8 million a year ago.
For the 2018 financial year, ending in September, TUI said it expects to record at least 10% underlying Ebita growth over the year earlier, with revenue growth of around 3%. In the 2017 financial year, TUI posted underlying Ebita of EUR1.10 billion and revenue of EUR18.54 billion.
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