TUI posts higher Q1 loss of 166.8m euros
TUI AG, the German tour operator planning to split off its Hapag-Lloyd freight line, reported a higher first-quarter loss after excluding earnings from the container shipping unit as discontinued operations.
The net loss attributable to shareholders was 166.8 million euros (S$357 million), or 69 euro cents per share, up from 117 million euros, or 47 euro cents, during the year-earlier period, Hanover, Germany-based TUI said yesterday in a statement. The company last week reported higher sales and a narrower operating loss for the period.
Chief executive officer Michael Frenzel, who last week won a battle over future strategy against TUI's biggest investor, John Fredriksen, agreed this year to split off Hapag after months of investor pressure. Norwegian billionaire Mr Fredriksen, who holds 11.75 per cent of TUI, has said the Hapag disposal isn't moving quickly enough and tried to oust the chairman.
Sales growth was helped by last year's merger of TUI's tourism unit with First Choice Holidays plc, which created London-listed and UK-based TUI Travel plc. TUI Travel, majority owned by TUI, said on April 13 its net loss shrank to £pounds;300.9 million (S$807 million) in the six months through March from £pounds;344.9 million a year earlier.
The loss before interest, taxes and amortisation at the tourism unit, which besides TUI Travel includes hotels and cruise ships operated by the parent company, was 305 million euros after 237 million euros a year earlier.
'It is positive for TUI that the company has less capacity in tourism to sell,' Robert Greil, an analyst at Merck Finck & Co in Munich, said in an interview on Wednesday. The analyst has a 'hold' rating on the stock and a target price of 19 euros.
Mr Frenzel said last week TUI expects to more than double total business volume in its long-haul operations over the next 10 years. The company plans to further expand its tourism operations in Russia, India, China and other emerging markets.
Ebita from container shipping was one million euros after 137 million euros a year earlier.
TUI repeated that it expects 'substantial' earnings growth from tourism this year, without being more precise. It also reiterated that it expects 'a clear increase in earnings' in container shipping.
TUI, which would prefer to sell the unit, isn't ruling out other options. Mr Fredriksen, who has said a 'fast' sale of Hapag is impossible given turmoil in world credit markets, wants an eventual initial public offering for the unit.
The net loss attributable to shareholders was 166.8 million euros (S$357 million), or 69 euro cents per share, up from 117 million euros, or 47 euro cents, during the year-earlier period, Hanover, Germany-based TUI said yesterday in a statement. The company last week reported higher sales and a narrower operating loss for the period.
Chief executive officer Michael Frenzel, who last week won a battle over future strategy against TUI's biggest investor, John Fredriksen, agreed this year to split off Hapag after months of investor pressure. Norwegian billionaire Mr Fredriksen, who holds 11.75 per cent of TUI, has said the Hapag disposal isn't moving quickly enough and tried to oust the chairman.
Sales growth was helped by last year's merger of TUI's tourism unit with First Choice Holidays plc, which created London-listed and UK-based TUI Travel plc. TUI Travel, majority owned by TUI, said on April 13 its net loss shrank to £pounds;300.9 million (S$807 million) in the six months through March from £pounds;344.9 million a year earlier.
The loss before interest, taxes and amortisation at the tourism unit, which besides TUI Travel includes hotels and cruise ships operated by the parent company, was 305 million euros after 237 million euros a year earlier.
'It is positive for TUI that the company has less capacity in tourism to sell,' Robert Greil, an analyst at Merck Finck & Co in Munich, said in an interview on Wednesday. The analyst has a 'hold' rating on the stock and a target price of 19 euros.
Mr Frenzel said last week TUI expects to more than double total business volume in its long-haul operations over the next 10 years. The company plans to further expand its tourism operations in Russia, India, China and other emerging markets.
Ebita from container shipping was one million euros after 137 million euros a year earlier.
TUI repeated that it expects 'substantial' earnings growth from tourism this year, without being more precise. It also reiterated that it expects 'a clear increase in earnings' in container shipping.
TUI, which would prefer to sell the unit, isn't ruling out other options. Mr Fredriksen, who has said a 'fast' sale of Hapag is impossible given turmoil in world credit markets, wants an eventual initial public offering for the unit.