Third-quarter revenue fell by 5.6% to €5.8bn (€6.0bn expected) with a 7.9% decline in Markets + Airline more than offsetting growth in Holiday Experiences.
Underlying operating profit was down 27.1% to €234mn (€275mn expected) including a €20mn direct impact from the Iran war. The rest of the decline mainly driven by Markets + Airline where weak demand was compounded by higher fuel prices.
Free cash flow swung from €431mn inflow to an outflow of €189mn over the first 9 months which reflected a later booking pattern. Net debt rose 22.9% to €2.3bn.
Full-year revenue guidance remains suspended with underlying operating profit guidance range unchanged at €1.1-€1.4bn.
The shares were down 3.0% in early trading.
Our view
HL view to follow.
TUI key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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