TUI AG: guidance reiterated as losses narrow.

(CercleFinance.com) - The German travel and tourism company TUI Group reiterated on Tuesday its earnings expectations for this year after delivering a "good operational performance" in the first-quarter.


The company reported an underlying loss before interest, taxes and amortisation (Ebita) of 72.5 million euros for the quarter to end-December, versus -101.7 million euros the previous year.

TUI says the fall in its loss was driven by a sales growth of 8.5%, plus the delivery of further merger synergies.

The company also said that current trading for 2016/2017 winter season remained "in line with expectations", with 87% of its offer sold.

Most importantly, the group reiterated its guidance of at least 10% growth in underlying Ebita in 2016/2017.

Yesterday, TUI Group said it had reached an agreement with KKR to sell Travelopia for an agreed enterprise value of 325 million pounds (381 million euros).

Proceeds will be reinvested in the business' transformation, the group said, adding that negotiations with Etihad regarding the disposal of TUI Fly are also making progress.

Shares in TUI Travel listed on the London Stock Exchange were up 2.4% at 1,185 pence in early trading on Tuesday.

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