Shares in TUI Group (LON:TUI) have jumped in London this morning, as the blue-chip tour operator said that it expects to deliver a fourth consecutive year of double-digit earnings growth, despite this year’s hot weather spell. The company, however, has flagged a currency hit as a result of the recent Turkish lira rout.
As of 09:34 BST, TUI’s share price had added 2.05 percent to 1,467.50p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.09 percent higher at 7,518.37 points.
TUI updates on trading
TUI announced in a statement this morning that its financial year was closing as expected, “with the fourth consecutive year of double digit growth in underlying EBITA”. The company said that its strategy in Hotels & Resorts had continued to pay off, with the group benefitting from the returning demand for Turkey, North Africa and increased demand for Greece, as well as delivering new openings in South East Asia and the Caribbean.
“The number of customers purchasing holidays from us has grown in all major markets, even with the sustained period of hot weather in Northern Europe this Summer,” TUI’s chief executive Friedrich Joussen, commented in the statement, adding that the group reiterated its guidance of at least 10-percent underlying EBITA growth in FY18.
Group warns of currency hit
The company, however, warned that it was expecting a €70-million hit from foreign exchange translation on the FY18 underlying EBITA result, following the further weakening of the Turkish lira since the group’s third-quarter update when the tour operator flagged approximately €35 million adverse translation impact on underlying earnings.
TUI is due to issue its annual report on December 13 when it will also hold a presentation for investors and analysts.