TUI AG is considering delisting in London and trading exclusively on the Frankfurt Stock Exchange after some shareholders considered the benefits of a simplified listing structure.
The London-listed German tour operator made the announcement on Wednesday as it reported a rise in net profit for the 2023 financial year on record sales and said it expected sales growth of at least 10% next year.
A change to the company’s stock exchange structure would enable a clearer investment profile, centralization of liquidity and lower costs, it said.
No decision has been made yet, but the board is considering bringing this to the annual general meeting on February 13 so that shareholders can vote on the proposal, TUI said. To obtain approval under the UK Listing Rules, a minimum of 75% of votes cast is required.
A delisting would be a major blow to the London Stock Exchange after some major companies moved their listings to New York.
Irish building materials supplier CRH, listed on London’s FTSE 100 index, moved its main listing to New York in September. Flutter Entertainment – whose brands include FanDuel, PokerStars and Paddy Power – is also planning a move to the US, while British chipmaker Arm Holdings has chosen New York over London because of its stock market returns.
Net profit for the year ended September 30 was 305.8 million euros ($330.2 million), compared with a loss of 277.3 million euros in the same period last year and a FactSet profit consensus of 340.6 million Euro.
Earnings before interest and taxes amounted to EUR 999.3 million compared to EUR 320.0 million.
Adjusted EBIT – one of the company’s preferred metrics that excludes extraordinary and other one-off items – was 977.2 million euros, compared to 408.7 million euros and a consensus of 1.01 billion euros.
For the coming year, TUI expects adjusted EBIT growth of at least 25% and is aiming to increase adjusted earnings by 7 to 10% in the medium term.
Sales rose to 20.665 billion euros from 16.54 billion euros and a consensus of 20.39 billion euros.
According to TUI, demand continues, with bookings for winter 2023/24 increasing by 11% and average prices increasing by 5%.
It added that 56% of its winter program was sold, in line with last year’s levels, while 14% of its summer 2024 program was already sold, with bookings up 13% and average prices up 4%.
The company attributed this achievement to its transformation program. The hotel and cruise industries are growth areas and highly profitable, while other segments, such as the tour operator business, are in transition in order to also achieve a good level of profitability again.
“Our goal remains to make TUI more profitable, efficient and stronger in all segments… The current winter bookings and the first signs for next summer suggest further improvement can be expected for 2024,” said CEO Sebastian Ebel.
Separately, the company said David Schelp has been named Chief Executive Officer Markets & Airlines effective Jan. 1, replacing David Burling, who will step down from the position on Jan. 5. Schelp previously held management positions at TUI from 2002 to 2022, most of them most recently as CEO of TUI Musement.
Shares rose 52.0 pence, or 10%, to 564.0 pence at 1120 GMT.
Write to Ian Walker at [email protected]