Shares in Tui Group (TUI) fell around 5 per cent in early trading after the tourism company reported subdued demand for holidays to Turkey and north Africa during the first half of its financial year due to political upheaval in the regions. But this was offset by growing demand for the Mediterranean regions and the Caribbean, and an average 75 per cent occupancy rate across its hotels and resorts helped to push annual revenue per bed up by 5 per cent.
Tui remains set on delivering its goal of at least 10 per cent growth in underlying earnings in its full-year results, along with a 3 per cent rise in revenue. Its hotels are already 62 per cent booked for the summer season, 4 per cent higher than the same time last year, with holidays to Greece, Bulgaria, Croatia and Cape Verde proving particularly popular.
Although management said that the UK remained "resilient", the group warned that Brexit has moved from an emerging to an active risk facing, and although the weak pound has not hit the company yet due to hedging, it is likely to hurt the group over the summer.
Analysts at Stifel expect adjusted pre-tax profits of €970m in the year to September 2017, with EPS of 112¢, up from €821m and 86¢ in FY2016.
| TUI GROUP (TUI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,134p | MARKET VALUE: | £6.66bn | |
| TOUCH: | 1,132-1,134p | 12-MONTH HIGH: | 1,231p | LOW: 813p |
| DIVIDEND YIELD: | 4.7% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 375₡ | NET DEBT: | 39% | |
| Half-year to 31 Mar | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2016 | 6.18 | -423 | -77.0 | nil |
| 2017 | 6.38 | -311 | -62.0 | nil |
| % change | +3 | - | - | - |
Ex-div: na Payment: na *Full-year dividend of 63¢ paid in February 2017. £1=€1.18 **Includes intangible assets of €3.5bn, or 598¢ a share | ||||
