TUI AG: shares tumble after disappoining results
(CercleFinance.com) - Germany's TUI AG posted an 18% drop in third-quarter group operating profit, although said that it is maintaining its full-year guidance.
Third-quarter underlying EBITA fell to 193.4 million euros in the period to 30 June, down from 221.6 million euros a year ago.
Analysts noted a "weaker than expected performance" in sales and marketing, the group's main division.
Sales at this division rose by 5% to 4.4 billion euros, although the unit's underlying EBITA fell by 55% to 42.5 million euros.
"Full year guidance was maintained although hot weather is expected to limit outperformance," UBS pointed out.
For 2018, TUI said it expects to deliver at least 10% growth in underlying EBITA, and around 3% growth in turnover.
Listed in London, TUI AG shares are currently down 8.8% at 1,451.5 pence. They have fallen by about 15% over the past three months.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Third-quarter underlying EBITA fell to 193.4 million euros in the period to 30 June, down from 221.6 million euros a year ago.
Analysts noted a "weaker than expected performance" in sales and marketing, the group's main division.
Sales at this division rose by 5% to 4.4 billion euros, although the unit's underlying EBITA fell by 55% to 42.5 million euros.
"Full year guidance was maintained although hot weather is expected to limit outperformance," UBS pointed out.
For 2018, TUI said it expects to deliver at least 10% growth in underlying EBITA, and around 3% growth in turnover.
Listed in London, TUI AG shares are currently down 8.8% at 1,451.5 pence. They have fallen by about 15% over the past three months.
Copyright (c) 2018 CercleFinance.com. All rights reserved.