TUI shares drop 4% on FY21 loss: Should you go for a bargain buy?

December 09, 2021 12:02 AM AEDT | By Suhita Poddar
 TUI shares drop 4% on FY21 loss: Should you go for a bargain buy?
Image source: Iryna Kalamurza, Shutterstock.com

Highlights 

  • TUI group’s shares dropped around 4 per cent after it posted an FY 2021 loss before tax of over EUR 2 billion.
  • The group’s winter 2021/22 bookings are currently at 62 per cent of its bookings of pre-pandemic levels.
  • TUI expects its summer 2022 volumes to rebound near to normalised summer 2019 levels.

Germany based travel and tourism major TUI Group’s (LON:TUI) shares dropped nearly 4 per cent after the group posted over EUR 2 billion in annual losses in its full-year results today.

TUI group’s full-year results

The group’s FY 2021 revenue dropped by 40 per cent to EUR 4.732 billion, from EUR 7.944 billion in the year before (on an adjusted basis).

However, TUI’s Q4 2021 revenue jumped to EUR 3.366 billion, up sharply from EUR 1.233 billion in Q4 2020 (adjusted basis). This jump was attributed to the success of vaccination programmes and due to the leisure travel sector rebound, especially in the summer season in continental Europe.

TUI’s FY 2021 loss before tax stood at EUR 2.462 billion, narrowing from a loss of EUR 3.203 billion in FY 2020 (adjusted basis).

The group’s Q4 2021 earnings before interest and tax (EBIT) was almost break-even, standing at a loss of EUR 97 million, which included EUR 60 million one-offs, delivered on lower volumes.

TUI AG’s (LON: TUI) share price performance

TUI’s shares were down by 3.72 per cent to GBX 209.40 on 8 December at 08:56 AM BST, while the FTSE 250 index was at 23,358.95, up by 0.52 per cent.

TUI is a part of the FTSE 250 index and was the second-biggest faller at the time of writing on the index.

TUI share price and volume

Image source: Refinitiv

The company’s market cap stands at £3,529.84 million as of Wednesday.

Current trading

The group’s winter 2021/22 bookings were currently at 62 per cent of its bookings compared to pre-pandemic levels in winter 2018/19.

The group stated that before the recent news coverage of the Omicron variant, winter bookings had returned to their normalised levels, last seen in winter 2018/19.

The group’s Q1 2022 capacity is expected to move towards the lower end of its winter capacity plans to a range of about 60 to 80 per cent.

TUI has a pipeline of 2.2 million bookings for summer 2022, an increase of about 535 thousand bookings since its previous 3 October update.

This increase is due to a combination of re-bookings and new bookings, which further affirms that customers intend to travel and highlights the continuing appetite for a summer holiday.

The company expects that summer 2022 volumes will rebound near to normalised summer 2019 levels. TUI expects that the rebound will be aided by a mix of factors such as a better starting position and a travel environment helped by the ongoing success of vaccinations.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.