Profits slip at TUI AG despite rise in revenue

12th Aug 2011
Profits slip at TUI AG despite rise in revenue

TUI Group has seen underlying profits before tax slip during the third quarter of financial 2011, with EBITA decreasing by 11 per cent to €96 million from €108 million the previous year.

In a set of mixed results, Europe’s largest tour operator said political turmoil in North Africa – particularly Egypt – was responsible for the loss.

TUI AG – which owns TUI Travel and Thomson – saw revenues increase nine per cent to €4.4 billion.

Despite the losses TUI AG expects turnover growth for the overall financial year 2010/11. 

“TUI continues to expect the Group result for the year to be positive,” added a statement.

While TUI Travel, TUI Cruise and TUI Hotels & Resorts all saw growth in revenue, TUI AG warned profits from its container shipping business would be “lower than anticipated”.

TUI AG retains a 38 per cent stake in Hapag-Lloyd.

“In the third quarter, turnover declined by almost nine per cent year-on-year to around €1.5 billion,” explained a statement.

“This development was mainly attributable to the 11 per cent weakening of the US dollar against the euro, while transport volumes rose slightly and freight rate levels remained almost stable.”


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