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Dec. 13, 2018, 3:08 a.m. EST

TUI net profit up 14%, upbeat on winter period

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By Adria Calatayud

TUI AG (TUI1.XE) said Thursday that fiscal 2018 net profit rose 14% as it backed its guidance for the year ahead on a winter performance in line with the prior year's level.

Net profit for the year ended Sept. 30 was 732.5 million euros ($831.1 million) compared with EUR644.8 million in fiscal 2017, the FTSE 100-listed, Germany-based travel group said. TUI said its transformation into a traditional tour operator paid off, as it delivered strong performances from its hotel and cruise segments.

TUI said underlying earnings before interest, taxes and amortization--the company's preferred profit measure--grew 11% to EUR1.22 billion at constant currency in fiscal 2018. This was slightly ahead of guidance of a 10% Ebita increase.

The company--which provides tour, hotel and resort and cruise services--said turnover rose 5.3% to EUR19.52 billion in fiscal 2018 from EUR18.54 billion in the prior year.

TUI said it targets underlying Ebita growth of at least 10% at constant currency in the year ahead, and aims to mitigate the impact of a challenging environment in its traditional tour operator business through further growth in its hotel and cruise segments, digitalization and efficiency initiatives.

The board declared a dividend of 72 euro cents a share for fiscal 2018, up from 65 euro cents a year earlier.

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