TUI AG, Europe’s largest tour operator, said operating profit will rise “at least 10 percent” after strong demand from northern Europe helped lift the measure by 23 percent last year.
Underlying earnings before interest, taxes and amortization rose to 1.07 billion euros ($1.18 billion) in the year ended Sept 30, and the measure will continue to increase as revenue gains by at least 3 percent after jumping 8 percent last year, TUI said in a statement on Thursday. Hotelbeds Group, the company’s online hotel booking business, is being carved out and undergoing a “strategic review.”
Chief Executive Officer Fritz Joussen is moving hotel and flight capacities around after a string of terror attacks prompted European vacationers to rethink travel plans, while wringing savings and extra revenue from merging the Hanover- based company with Crawley, England-based subsidiary TUI Travel. The company proposed a dividend of 0.56 euro, compared with an estimate for 0.52 euro by Bloomberg analysts.
This article was written by Richard Weiss from Bloomberg and was legally licensed through the NewsCred publisher network.