This year was another “very good” period for TUI Group, the travel group said in a release detailing financial results for 2017.
In the period under review, TUI increased its underlying EBITA by 12 per cent, with turnover up 11.7 per cent.
Despite a challenging market environment, TUI again outperformed its guidance of delivering at least ten per cent growth in underlying EBITA.
“For the third consecutive year, we have delivered double-digit growth in our operating result.
“More than half of our earnings are delivered by TUI’s hotel and cruise companies.
“Our successful strategic realignment is also clearly reflected in our set of results.
“Thanks to the strong growth of our hotel and cruise brands, TUI now delivers stronger margins and is less seasonal, said” TUI chief executive, Fritz Joussen.
In the period under review, from October 1st, 2016, to September 30th this year, TUI Group delivered turnover growth of 11.7 per cent to €19.2 billion, up from €17.2 billion at constant currency.
Including foreign exchange effects, turnover also rose substantially by 8.1 per cent to €18.5 billion.
Underlying EBITA at constant currency climbed by 12 per cent to €1.12 billion (previous year €1 billion).
Including foreign exchange effects, it grew by 10.2 per cent to €1.10 billion.
“Our business profile is now much more evenly structured across the entire year.
“The clear focus on investments in high-margin hotels and ships was the core of the strategy for the new TUI following the merger in 2014,” said Joussen.
“We are investing in new hotels and modern cruise ships.
“And we pay an attractive dividend to our shareholders.
“We are seeking to continue this path.”
TUI has south to transform itself and has become a completely different organisation over the past five years.
“TUI 2017 is not comparable with TUI 2012,” said Joussen.
“While the group in essence was a tour operator, TUI is now a developer, investor and operator of hotel and cruise businesses.
“We will continue to invest in our own hotel and cruise companies to generate further growth.”