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TUI Group has reported an operating result of €1.001 billion for the financial year, up from €953 million last year.
The figure excludes the specialist unit Travelopia, which is available for sale as announced and is accounted for as discontinued operation.
At constant exchange rates, the increase amounts to 14.5 per cent to €1,092 billion, including foreign exchange translation growth of five per cent.
Group turnover was up 1.4 per cent to €17.76 billion at constant exchanges rates.
TUI said it was extending its guidance for profit to rise by at least ten per cent a year to its 2018/19 financial year from the 2017/18 period, citing its strong outlook, and future investment in hotels and cruises.
The news comes as TUI Group continues to focus on its core business, invest in growth markets and deliver considerable earnings growth in the completed financial year.
Regarding the annual results Fritz Joussen, chief executive, TUI Group, explained: “TUI is in good shape, the course is set for growth.
“We are in a strong position in Europe, continue our expansion, in particular in Mexico and the Caribbean, and seek to benefit from the growth momentum in other parts of the world, where more people are discovering leisure travel.
“Thanks to the global strength of the TUI brand, it offers great potential internationally.
“We invest in hotels and cruises with their strong growth and margin potential, and consistently continue TUI’s transformation initiated in 2014.”
The TUI executive board proposed a €0.63 per share dividend.
The development of TUI Group’s dividend is linked to the group’s underlying EBITA at constant currency.
TUI Group is on track to continue its profitable growth in the long run.
Having completed the disposal of Hotelbeds Group and with the disposal process for the specialist travel unit Travelopia underway, the group focuses on delivering transformational growth in its own hotel and cruise brands as an integrated tourism group.
Joussen added: “Despite continued geopolitical crises and macroeconomic challenges, we have withdrawn from the trend of the industry and delivered considerable earnings growth.
“Our strategy as a tourism group with a vertically integrated model and the consistent transformation of our group with a focus on our own hotel and cruise brands are increasingly paying off.”
Sourse: breakingtravelnews.com
