Tui surges 9% on full-year results, profit forecast

Shares of Tui were roughly 9% higher mid-morning Wednesday after the German travel group posted full-year results that showed underlying earnings before interest and taxes (EBIT) soared 139%.

Revenue rose 11% to 8.5 billion euros ($9.17 billion), while investors zeroed in on a forecast for EBIT to increase by at least 25% year-on-year in 2024.

Additional interest was generated by news that the company’s board is considering delisting from the London Stock Exchange and upgrading to a prime standard listing in Frankfurt in an effort to simplify its investment profile.

It also cited potential “potential benefits to European Union airline ownership and control requirements,” along with efficiencies and reduced costs.

The decision will be discussed at Tui’s annual general meeting in February, and would require 75% shareholder approval.

The move would represent a significant blow to the U.K. exchange as it seeks to keep and attract new firms and revises its listing rules to increase its attractiveness.

Analysts at Jefferies said in a research note that 2023 sales were 2% ahead of consensus, confirming that the market focus would be on the 2024 guidance, “which implies a positive outlook for international travel from Europe.”

“Guidance for FY24E is for ‘at least’ 25% underlying EBIT growth, and implies consensus should move up at least +7%. It is supported by strong Winter 24 and Summer 24 current trading” the analysts said.