TUI: shares fall after 'poor' quarterly results

(CercleFinance.com) - TUI shares fell on Tuesday after the German tourism group posted "poor" first-quarter earnings.


The group said its operating loss (underlying EBITA) widened to 83.6 million euros in the period from 1 October 2018 to 31 December 2018, from 36.7 million euros in the same period a year ago, on revenues that are up 4.4% at 3.7 billion euros.

Again, TUI blamed the knock-on impact of the Summer 2018 heatwave, over-capacity in Spain arising from the shift in demand to the Eastern Mediterranean, and the continued weakness of the pound.

"Quarterly results confirm the very difficult momentum flagged by management a few days ago," commented analysts at Paris-based broker Oddo.

"The 2019 financial year should therefore remain very challenging for the group," Oddo added, remaining "neutral" on the shares at this stage.

Investors seemed to share this stance, with the London-based TUI shares down 3.5% in mid-morning trading today.

Copyright (c) 2019 CercleFinance.com. All rights reserved.