TUI Share Price Gapped Up 9.54% on Its FY 2023 Final Results

The TUI AG (LON: TUI) share price gapped up 9.54% after releasing its full-year results for the year ended 30 September 2023. The TUI Group's underlying EBIT for FY23 was €977 million, a significant increase of 139% year-on-year, aligning with expectations. 

The improvement was primarily due to robust performance in Holiday Experiences and operational improvements in Markets and Airlines.

The fourth quarter (Q4) saw 7.8 million customers, a slight increase from the previous year, with a load factor of 92%. Group revenue for Q4 was €8.5 billion, an 11% increase year-on-year, contributing to a record annual revenue of €20.7 billion, up 25% from FY22.

Q4 underlying EBIT was €1,203 million, up €164 million from last year, driven by solid results in Hotels & Resorts, Cruises, TUI Musement, and Markets & Airlines.

The Group's net debt reduced significantly to €2.1 billion, down from €3.4 billion the previous year, due to strong operational cash flow and successful capital measures.

The company’s winter bookings for Markets and Airlines showed positive trends with higher prices. Early indications suggest a strong Summer 2024 season. Considering current macroeconomic and geopolitical uncertainties, FY24 guidance anticipates at least a 10% increase in revenue and a minimum 25% rise in underlying EBIT.

Mid-term ambitions include accelerating profitable growth, achieving an underlying EBIT growth of approximately 7-10% CAGR, reducing net leverage below 1.0x, and returning to a pre-pandemic credit rating.

The company is considering changing its listing arrangements, moving to a Prime Standard listing in Frankfurt and delisting from the London Stock Exchange to align with shareholder interests and market liquidity shifts.

Sebastian Ebel, TUI’s CEO, said in an interview: “19 million customers travelled with TUI in the financial year 2023. That is 13 per cent more than last year. We had a strong Summer, and bookings have held up their healthy momentum into the early weeks of Winter 2023/24. We are working at a profit again; we have paid back the state loans. This has enabled us to invest in our own growth once more. And I am looking towards the new financial year with confidence. The economy may be under a few clouds, but people attach high priority to their holidays. We have a clear growth strategy. We are improving our market position in our traditional markets. We also want to offer new products to our regulars while winning over new customers in general.”

TUI share price. 

The TUI share price gapped up 9.54% to trade at 558.10p from Tuesday’s closing price of 509.50p.