Germany’s TUI AG, a travel and tourism firm, stated that its 1-billion-euro or 1.2-billion-US-dollar target in its core profit is nearly reachable for the present year as it posted the final set of outcomes ahead of its TUI Travel merge.
In September, the TUI Travel and TUI AG set a 6.5-billion-euro merger agreement in creating the world’s biggest leisure tourism company. The deal is expected to close on December 17, while the new group name will be announced the following week.
On Wednesday, the company Chief Executive Officer (CEO), Friedrich Joussen said its core profit target this year will also be applied to the merger. Thus, the new company’s turnover will rise from 2% to 4% in the current year towards September-end.
After a restructuring period, the company is investing in growth as it expands its hotel portfolio, while purchasing more cruise ships intended for its TUI Cruises unit. The CEO stated the TUI Travel merger would provide further momentum for its growth plans. He also said that its cruise division, the Hapag-Lloyd would have 2014-15 break even profit.
The company posted its core profit before EBITDA for the year ending September 2014 jumped 14% to 868.5 million euros, compared to the average forecast of analysts at 860 million. It also reported a dividend of 0.33 euros a share, higher than last year’s 0.15 euros.