Proactive Investors - TUI (LON:TUIT), the airline company, is set to shrink its losses in the first quarter but as an exit from the LSE looms, will investors focus detour away from the numbers?
Shares are down around 5% since it reported a record turnover and a doubling of earnings for the 2023 financial and investors will be hopeful a similar demand will continue into the new year.
Both customer numbers and prices rose during 2023, a key driving force for Tui’s impressive results, Sophie Lund-Yates at Hargreaves Lansdown (LON:HRGV) explained.
She believes when the airline reports first quarter results on Tuesday 13 February it will provide insight into whether customers are still prioritising travel and holidays.
Tui is confident, having predicted a 10% rise in revenue for the full year, however with only 56% of winter bookings sold last time it updated, investors will be crossing their fingers that the festive season was strong.
Analysts at UBS are confident Tui’s performance will improve on the year prior and beat out consensus.
The Swiss bank predicts an underlying loss of €50 million, outperforming consensus by €14 million and building on the €153 million loss from 2023.
Improved cruise and hotel profits combined with better hedging are the reasons why UBS is confident in predicting a consensus beat.
Looking towards summer, UBS (NYSE:UBS) thinks capacity will be close to 2019 levels with around 30% of schedules already sold.
However, what will be of more concern to the City is the prospect of the group exiting the London Stock Exchange after its board recommended an exit.
Tui is listed in both London and Frankfurt but said last month that shareholders had questioned whether the structure was “optimal and advantageous”.
In a statement in January, the tour operator said that liquidity in the shares had moved from London to Frankfurt in recent years.