TUI AG Q3 Profit From Cont. Ops. Rises; Turnover Up 12

Gladys Abbott
August 10, 2017

Including foreign exchange translation, turnover rose by 12.6 per cent to €4.78 billion.

Meanwhile, operating, or underlying profit grew 37.2% to €221.6 million on an adjusted basis, on the back of revenues up 12.6% at nearly 4.8 billion.

"This will be another good year for TUI Group".

It is expecting annual turnover to rise by more than 3%, while Tui also said it made an underlying profit for the first time over the first nine months of its financial year - a period that traditionally sees seasonal losses.

TUI Group continued its transformation into as a fully integrated tourism group during the period.

Third-quarter revenue was up 13% to EUR4.77 billion from EUR4.24 billion.

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Meanwhile, TUI said previously announced plans for rebranding that will see the Thomson brand disappear are to go ahead in the United Kingdom this autumn.

Mr Joussen said the rebrand had been successful in the Nordics and Belgium, suggesting it helped sales in those markets. "If demand is very high, prices are high and other destinations build because they are more affordable and that is what is happening right now", Joussen said.

"We are embracing new technologies such as Blockchain, and have already started to apply it in our hotel businesses".

Tourism companies have been dealing with a shift in demand from destinations in the eastern Mediterranean and North Africa, such as Turkey, Tunisia and Egypt, to countries such as Spain and Portugal over security fears and political tensions.

This factor was fully offset by additional offerings to alternative destinations.

"For the first time, we have delivered a positive operating result for the first nine months of a financial year". He added that TUI would look at adding Tunisia back into its program but no decision had been taken yet.

Other reports by LeisureTravelAid

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