TUI Share Price Spiked 8.33% on Its Upbeat Q4 2023 Revenues

The TUI AG (ETR: TUI1) share price spiked up 8.33% after announcing an unexpected profit alongside record-breaking revenue for the holiday quarter, as stakeholders gear up to decide on the proposal to remove the company from the London Stock Exchange listing.

The board of Tui, which holds positions on both the FTSE 250 index and the Frankfurt stock exchange, have advised its shareholders to endorse a move towards an exclusive listing in Germany during the annual general meeting scheduled for later today.

The decision to consider delisting from London, necessitating at least a 75% approval rate at the AGM, was motivated by shareholder feedback indicating that relocating to Germany could reduce expenses and bolster support regarding EU airline ownership regulations.

Tui, the largest travel company in Europe, highlighted that approximately 77% of its share dealings are conducted through the German share register, in contrast to less than one-quarter of trades occurring via UK depositary interests.

Should the shareholders greenlight the delisting proposal, it would mark another setback for the London Stock Exchange's stature.

Recently, Flutter Entertainment initiated a new listing in New York and announced plans to relocate its primary listing from London, with a shareholder vote on the matter set for May.

Moreover, last year, Arm, the Cambridge-based semiconductor firm and a notable UK tech success story, opted for an IPO on the Nasdaq over London, marking one of the largest public offerings in recent times.

The announcement of Tui's potential listing change comes alongside the company's report of a €6 million profit for the last quarter of the previous year, a significant turnaround from a €153 million loss during the same timeframe in 2022.

Revenue for the quarter increased by 15% year-over-year to €4.3 billion, setting a new record, attributed to the surge in demand and enhanced pricing and rates.

Sebastian Ebel, Tui's CEO, commented on the resilience of the desire to travel despite economic hurdles, stating, “We are on a positive trajectory, attracting more customers and expanding. Our transformation is picking up pace with each quarter.”

Tui also reported a reduction in debt from €5.3 billion to €4 billion by the year's end and reaffirmed its yearly projections of a 10% revenue growth and a 25% profit increase.

TUI share price. 

The TUI share price spiked up 8.33% to trade at 626.40p from Monday’s closing price of 578.25p.