Holiday giant Tui considers ditching London stock market listing

Tui said it expects underlying earnings to jump by at least a quarter over 2023-24 (PA)
Tui said it expects underlying earnings to jump by at least a quarter over 2023-24 (PA)

Holiday giant Tui has revealed it is considering ditching its London stock market listing following concerns raised by shareholders.

The German-based firm said it had been approached by investors over whether a London Stock Exchange (LSE) listing was still “optimal and advantageous” for the firm.

Tui, which has a joint listing in the UK and Frankfurt in Germany, said that in the past four years there had been a “notable liquidity migration from UK to Germany” in its share ownership.

It is now considering delisting from the LSE and switching its prime listing to Germany’s MDax market, which is the index below the Dax.

The group is proposing to hold a shareholder vote on the plans at its annual general meeting on February 13 next year.

The plans would need the support of 75% of investor votes to be passed.

Tui said: “In light of the views expressed by shareholders and any further feedback from shareholders, the executive board is currently considering, if an upgrade to a prime standard listing in Frankfurt with MDax inclusion and a delisting from the London Stock Exchange would be in the best interest of shareholders.”

It came as the holiday giant revealed that annual earnings more than doubled after record sales and rising prices, and the group expects another 25% leap in operating profits over the year ahead.

It said underlying earnings soared 139% to 977.2 million euros (£836.7 million) in the year to September 30 as revenues hit an all-time high of 20.7 billion euros (£17.7 billion) – “significantly” higher than before the pandemic.

It posted pre-tax earnings of 551.2 million euros (£471.9 million) against losses of 145.9 million euros (£124.9 million) the previous year.

Tui said it expects underlying earnings to jump by at least a quarter over 2023-24, with sales set to increase by another 10% at least.

But in a sign that there will be little respite for travellers from higher holiday prices and air fares in 2024, the group said bookings for the winter season were up 11%, with average prices up 5%.

It added that early indicators so far point to a strong summer season next year, with bookings up 13% and prices 4% higher.

The firm also warned that its guidance for the year ahead comes amid “current macroeconomic and geopolitical uncertainties, particularly in the Middle East”.

It said it has seen a temporary slowdown in bookings to Egypt due to the war between Hamas and Israel.

Rival easyJet said last week that the Gaza conflict and threat to stability across the Middle East had affected bookings across the board in October and November.

Tui chief executive Sebastian Ebel said: “2023 was a good year for Tui.

“We have significantly strengthened our core business and have new growth areas.”

He added: “The current winter bookings and the first indications for next summer lead us to expect a further improvement in 2024.”