German travel firm TUI Group (TUIFF.PK) Wednesday reported higher pre-tax profit for the fiscal year, amid a modest growth in revenues. TUI expects the group result for financial year 2012/13 to be positive.
TUI CEO Dr Michael Frenzel said, "Our business model has proven to be stable and sustainable despite a challenging economic framework in our key source markets in Europe. TUI is outperforming the market. Thanks to our product strategy and our efficient capacity control, we have delivered record operating results."
Earnings before taxation climbed to 252.7 million euros ($334.6 million) from 206.8 million euros. Underlying Earnings Before Interest, Tax and Amortization, or EBITA, the group's key performance indicator, jumped 24 percent to 746 million euros. Reported EBITA climbed 21 percent from last year.
The company reported a loss attributable to shareholders of 15.1 million euros compared to a profit of 23.9 million euros last year, as profit attributable to non-controlling interest surged to 157.0 million euros from 94.3 million euros. Group profit advanced 20 percent to 142 million euros.
Loss per share was 0.16 euros, wider than the 0.01 euros per share loss reported last year, primarily due to the deterioration in the profit contribution from the Hapag-Lloyd shareholding included in TUI's Group result.
Revenue advanced 5 percent to 18.33 billion euros from 17.5 billion euros. Tourism revenue rose 5 percent, with a 4.8 percent increase in TUI Travel, a 6.1 percent increase in TUI Hotels & Resorts and a 15 percent increase in Cruises revenue.
TUI Travel revenue grew 2.1 percent on a constant currency basis, amid higher average selling prices and a higher proportion of differentiated product.
The growth in Hotels & Resorts stemmed from an increase in average revenues per bed of 3.5 percent and an improvement in occupancy of 2.1 percentage points, with capacity slightly up year-on-year.
The Cruises Sector, which comprises the Hapag-Lloyd Kreuzfahrten and TUI Cruises brands, reflected capacity increases within the Hapag-Lloyd fleet.
Looking ahead to 2012/13, the firm expects a slight increase in turnover, driven by a higher proportion of exclusive product in TUI Travel's Mainstream Business. Operating earnings are expected to match with the prior year, provided that consumer sentiment in the key source markets remains stable.
The stock closed at 7.83 euros on Tuesday.
by RTT Staff Writer
For comments and feedback: email@example.com