TUI share price soars even as Tunisia attack weighs on profits

on Aug 13, 2015

TUI Group (LON:TUI) has climbed to the top of the FTSE 100 leaderboard this morning after the world’s largest leisure tourism company remained upbeat on full-year earnings growth, despite a profit hit following the terrorist attack on British holidaymakers in Tunisia earlier this year.

As of 08:37 BST, TUI’s share price had added 8.04 percent to 1,129.00p, having jumped nine percent earlier in the session. The shares are outperforming the blue-chip FTSE 100 index which currently stands 0.72 percent higher at 6,618.37 points.
TUI this morning reported that its underlying earnings before interest, taxes and amortisation (EBITA) had climbed to €194 million (£138 million) in the third quarter, 18 percent higher as compared to the prior-year period, while underlying revenue came in six percent higher at €5.08 billion. The group, however, unveiled that the cancellation of trips to Tunisia after the beach gun attack in late June had resulted in costs of around €10 million during the quarter.

“This quarter was marked by the tragic events in Tunisia at the end of June. Supporting our customers, their families and our colleagues through this sad time remains our highest priority,” TUI Group’s chief executives Friedrich Joussen and Peter Long commented in the statement. They added that “in spite of the events in Tunisia and Greece, we have continued to deliver strong growth in underlying EBITA”.
The company said today that the economic uncertainty in Greece had impacted trading to that destination at the end of June and the first half of July, but added that it had seen a recovery in booking volumes in recent weeks. TUI noted that its summer trading had been robust and it now expected its full-year underlying EBITA to rise by between 12.5 and 15 percent.

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