A Boeing 787 ‘Dreamliner’ plane with the brand of tourism giant TUI at Hanover airport in Langenhagen, central Germany.
JULIAN STRATENSCHULTE | AFP | Getty Images
Shares of Tui were roughly 9% higher mid-morning Wednesday after the German travel group posted full-year results that showed underlying earnings before interest and taxes (EBIT) soared 139%.
Revenue rose 11% to eight.5 billion euros ($9.17 billion), while investors zeroed in on a forecast for EBIT to extend by a minimum of 25% year-on-year in 2024.
Additional interest was generated by news that the corporate’s board is considering delisting from the London Stock Exchange and upgrading to a first-rate standard listing in Frankfurt in an effort to simplify its investment profile.
It also cited potential “potential advantages to European Union airline ownership and control requirements,” together with efficiencies and reduced costs.
The choice will likely be discussed at Tui’s annual general meeting in February, and would require 75% shareholder approval.
The move would represent a big blow to the U.K. exchange because it seeks to maintain and attract latest firms and revises its listing rules to extend its attractiveness.
Tui shares year-to-date
Analysts at Jefferies said in a research note that 2023 sales were 2% ahead of consensus, confirming that the market focus could be on the 2024 guidance, “which means a positive outlook for international travel from Europe.”
“Guidance for FY24E is for ‘a minimum of’ 25% underlying EBIT growth, and implies consensus should move up a minimum of +7%. It’s supported by strong Winter 24 and Summer 24 current trading” the analysts said.
