TUI Third-Quarter Earnings Increase on Hotel Business Growth
TUI AG (TUI1), the owner of Europe’s largest travel company, said third-quarter earnings rose as revenue at the hotel and cruises divisions increased.
Underlying earnings before interest, taxes and amortization rose to 102.3 million euros ($126.4 million) in the three months through June from 96.2 million euros a year earlier, Hanover, Germany-based TUI said in a statement today. That beat the 95.5- million euro average of six analysts compiled by Bloomberg.
TUI completed the sale of a 17.4 percent stake in shipping company Hapag-Lloyd to investor group Albert Ballin in June to focus on tourism, and it has retained the right to sell its remaining 22 percent holding in an initial public offering. The company is also considering an offer for the Central European tourism operations of its TUI Travel (TT/) Plc unit, people familiar with the talks said this month. TUI reiterated today that full- year sales will rise “moderately” and operating profit will increase.
Sales gained 8 percent to 4.72 billion euros. That beat the 4.6 billion-euro average of seven analysts’ estimates compiled by Bloomberg.
The tourism division, which includes a controlling stake in TUI Travel as well as investments in holiday resorts and cruise ships, reported underlying Ebita of 122.4 million euros compared with 104.5 million euros last year.
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