TUI shares gain as it forecasts rise in revenue
TUI, the owner of Europe’s largest travel company, said it expected a “slight” increase in revenue this fiscal year and plans to restore dividends soon as tourism in the region resists the weak economic climate.
Shares rose as much as 5 per cent in Frankfurt, the steepest gain in a month, as chief executive Michael Frenzel said dividend payments were likely to resume in the “near future”, having been absent since 2008.
Mr Frenzel, who will be replaced by Friedrich Joussen in February, has been trying to focus TUI on its tourism business by putting units such as shipping up for sale.
TUI yesterday reported a 4.9 per cent gain in revenue to €18.3 billion for the year through September, matching estimates.
Adjusted operating profit rose 24 per cent to €746 million. – Bloomberg