TUI Stock Strengthens: TUI Confirms Forecast After Record Revenue in Q3

The travel group, which has been listed on the MDAX again since the end of June, confirmed its forecast. Revenue increased by 9 percent to 5.8 billion euros in the three months to the end of June. Adjusted earnings before interest and taxes (EBIT) disproportionately rose by 37 percent to 232 million euros. Analysts had expected revenue of 5.77 billion euros and an adjusted EBIT of 208 million euros according to the consensus forecast.

For the current summer travel season, TUI recorded a 6 percent increase in bookings. Average prices were 3 percent higher compared to the previous year. 88 percent of the capacities for the current summer are already sold. The booking increase for the British market is currently 5 percent, and for TUI Germany, it is 10 percent. According to further information, the start of the winter 24/25 season is promising.

“For the eighth consecutive time, we are showing double-digit growth in adjusted EBIT. In a still challenging market environment, this also demonstrates the strength and future viability of our business model. We are growing profitably. Thus, we deliver what we have announced,” said CEO Sebastian Ebel in the statement.

In the current fiscal year 2023/24, TUI continues to aim for growth in adjusted EBIT of at least 25 percent and revenue growth of at least 10 percent.

TUI Benefits from Travel Enthusiasm – Stock in Demand

Customer enthusiasm for travel continues to provide tailwind for TUI. The hotel business with brands such as Riu, TUI Blue, and Robinson recently grew significantly, and cruises remained in demand, allowing for higher prices. In the third fiscal quarter to the end of June, revenue increased by 9.5 percent year-on-year to 5.8 billion euros, TUI announced on Wednesday. After adjusting for special effects, earnings before interest and taxes amounted to 231.9 million euros, nearly 37 percent more than a year ago. The company performed better than analysts expected and referred to the period as a record quarter. In early trading, shares showed significant gains, temporarily rising by 2.45 percent to 5.68 euros in XETRA trading.

In the past business quarter, net profit attributable to shareholders amounted to 52.4 million euros, more than double the amount in the same period last year.

The company leadership confirmed the annual targets. Revenue is expected to increase by at least ten percent, and the operating profit adjusted for special items is expected to grow by at least 25 percent.