TUI AG: shares tumble after disappoining results

(CercleFinance.com) - Germany's TUI AG posted an 18% drop in third-quarter group operating profit, although said that it is maintaining its full-year guidance.


Third-quarter underlying EBITA fell to 193.4 million euros in the period to 30 June, down from 221.6 million euros a year ago.

Analysts noted a "weaker than expected performance" in sales and marketing, the group's main division.

Sales at this division rose by 5% to 4.4 billion euros, although the unit's underlying EBITA fell by 55% to 42.5 million euros.

"Full year guidance was maintained although hot weather is expected to limit outperformance," UBS pointed out.

For 2018, TUI said it expects to deliver at least 10% growth in underlying EBITA, and around 3% growth in turnover.

Listed in London, TUI AG shares are currently down 8.8% at 1,451.5 pence. They have fallen by about 15% over the past three months.

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