(CercleFinance.com) – TUI, the leading European tour operator, reported on Tuesday quarterly results that were generally better than expected, thanks to an improvement in its booking trends.
The German group reported an operating loss (Ebitda) reduced to 55.5 million euros for the past quarter, the first of its staggered fiscal year, against -474.8 million euros a year earlier.
Analysts were expecting a steeper quarterly loss.
Its revenues amounted to 2.37 billion euros, again slightly above expectations, which corresponds to a five-fold increase in the level of activity compared to the same period of the previous year.
Despite the impact of Omicron, the tourism group said it was confident about its reservations for the summer season, which already represent 72% of those recorded in the summer of 2019, i.e. before the health crisis.
Over the past quarter, TUI says it has used 67% of its capacity in the first quarter of 2019.
Finally, the group’s available cash now stands at 3.3 billion euros, against 3.4 billion at the end of September, which shows a rather controlled consumption of cash (‘cash burn’).
Despite these announcements, the TUI title lost 3.7% on Tuesday on the London Stock Exchange, yet up 0.5%, while the sector index, the STOXX Europe 600 Travel & Leisure, climbed 3%.
“It is clear that activity remains fragile”, temper analysts at Oddo BHF this morning in a reaction note, stressing that the process of deleveraging will necessarily go through a significant recovery in activity over the coming summer season. .
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