TUI Group records €448m annual profit following merger

TUI Group records €448m annual profit following merger

The TUI Group has outperformed its earnings guidance for the full financial year.

“The first year following the restructuring of the TUI Group was completed with a very strong set of results,” said Fritz Joussen, chief executive TUI Group.

The operating result (underlying EBITA) climbed by 22.9 per cent to 1.069 billion euros (previous year €870 million). It amounted to €1.004 billion on a constant currency basis, up 15.4 per cent.

The results thus also outperformed the announced corridor (12.5 to 15.0 per cent).

Growth in tourism was driven by Northern Region, Hotels & Resorts and Cruises, which achieved substantial earnings growth.

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The group implemented the planned value increase based on profitable growth: group turnover rose by eight per cent €20.01 billion.

At constant currency, it grew by 3.6 per cent to €19.20 billion.

Due to the very strong operating performance, lower interest payments and positive tax effects, group profit before minority interests and discontinued operations grew by €56.7 per cent year-on-year to €448.4 million.

Joussen added: “With the support of our 76,000 employees in 130 countries, we implemented our post-merger integration and delivered growth despite various geopolitical challenges.

“We have delivered on our promises, outperforming our ambitious targets.

“Our integrated business model and the new structures have strengthened our group and accelerated growth.

“We are headed in the right direction.

“I am confident that we will continue to deliver sustainable profitable growth for our group.

“This will create value for our shareholders and our employees.

“TUI today is in very good shape.

“We are the global market leader in tourism and remain set for growth.”