8th Dec 2016 07:31
LONDON (Alliance News) - Travel operator TUI AG on Thursday said underlying earnings outpaced its previous guidance in its recently completed financial year, and it anticipates further growth in the coming year.
The FTSE 100 holiday company, which owns the Thomson and First Choice holiday brands, said it made underlying earnings before interest, tax and amortisation of EUR1.00 billion in the year to the end of September, up 5.0% but rising 15% in constant currencies, ahead of the 12% to 13% growth guidance the company had given in its post-close statement in September.
Revenue slipped 1.9% to EUR17.19 billion from EUR17.52 billion a year before, due to the weak pound against the euro. In constant currencies, revenue rose 1.4%.
TUI said trading for winter 2016-17 and summer 2017 remains in line with its expectations. For the 2016 financial year, the group reported strong trading in the UK, which helped offset weakness in its Nordics region as a result of a decline in demand for holidays to Turkey. Market conditions in Germany were challenging for the same reason, with demand for trips to Turkey slumping.
TUI declared a total dividend for the year of 63.00 euro cents per share, up 13% on the 56.00 cents it paid out a year prior.
The company said it anticipates at least 10% growth in underlying Ebita in constant currencies in the year to the end of September 2017, in line with the guidance it provided at the start of the 2016 financial year which was then subsequently raised.
By Sam Unsted; [email protected]; @SamUAtAlliance
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