The TUI AG (LON: TUI) share price fell 5.31% after announcing its Q2 and H1 results for the quarter ended in April. The Germana travel and leisure company reported a 13 percent improvement in summer booking compared to last year, with summer bookings at 96% of summer 2019 levels before the pandemic struck.
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The company also generated revenues worth €3.2 billion in Q2 2023, compared to €2.1 billion in Q2 2022. The firm noted that it was on track to generate significantly higher profits in the 2023 financial year than last year, but this was not enough to lift its share price, which continued to trade in negative territory.
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TUI’s underlying pretax profits improved by €88 million to reach €242 million in Q2 2023, a seasonally weak quarter for the industry due to less travel and leisure demand. The improvement reaches a record €182 million if the company excludes exceptional items.
The company’s holiday experiences division, which includes its hotels and cruises business registered a €148 million improvement to reach €80 million. TUI’s markets and airlines division had an underlying pretax profit of €309 million, almost back to 2019 levels, translating into a €42 million improvement on the Q2 2022 figures.
TUI reported that 2.4 million guests went on holiday with the company during Q2 2023. The high number of guests was combined with a significantly higher number of summer 2023 bookings, which was 13 percent higher than last year.
The company also revealed that bookings in the last six weeks of the period under review had exceeded 2019 levels. TUI also noted that it had repaid the funding it had received from the WSF after a successful capital increase. As a result, TUI’s net debt fell to €3.1 billion pro forma after the capital increase.
Sebastian Ebel, TUI’s CEO, said: “Strong booking development and significantly improved quarterly figures underline our expectations: it will be a strong Summer and a good financial year 2023 with a significantly higher operating result. Our strategic initiatives are taking effect, the state debts have been repaid. Our goal: return to former strength and profitable growth.”
Despite the upbeat earnings report, TUI’s shares fell on negative investor sentiment.
*This is not investment advice.
TUI share price.
The TUI (LON: TUI) share price fell 5.31% to trade at 533.60p, from Tuesday’s closing price of 563.50p.
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