British TUI lowers 2016 outlook due to situation in Egypt

Travel company TUI AG (TUI1.XE) Thursday reported a 22% rise in underlying operating profit, above expectations, but lowered its guidance for the year ahead due to the situation in Egypt.

The company, which operates the Thomson, airtours and First Choice brands, said the continued suspension of flights in and out of Sharm El Sheikh by several countries means it is likely to deliver underlying earnings before interest, taxes and amortization of at least 10% in fiscal 2016. It previously expected full-year underlying operating growth of 12.5%-15%.

For the year to Sept. 30, TUI made an underlying Ebita, which strips out exceptional and other one-off items, of 1.07 billion euros ($1.14 billion), compared with EUR870 million a year earlier.

The company posted a pretax profit of EUR535.4 million, compared with EUR498.7 million, on revenue of EUR20.01 billion and EUR18.54 billion, respectively.

Trading for winter bookings is in line with the board’s expectations, it said, adding that 60% of winter bookings have been sold with average selling prices up 4%. The company added that it has made a good start to bookings for next summer, with trading for the U.K. up 11%.

TUI shares in London closed Wednesday at 1121 pence, and are 4.07% higher over the past 12 months.

Source: Market Watch