Travel firm has agreed to sell its specialist holiday arm Travelopia to private equity firm KKR for an enterprise value of 381m euros (£325m).
It announced the sale ahead of its first-quarter results today, where UK holidaymakers’ search for sun bolstered bookings, despite weakened demand for Turkey and Egypt after terror attacks and political uncertainty. Tui shares were up 4.15 per cent to 1,205p at the time of writing.
Tui reported a slighter loss for the first quarter of 66.7m euros, a 17 per cent improvement on last year’s 80.4m euro loss.
Its Northern region division, including Britain, Ireland, the Nordics, Russia and Canada, was bolstered by a “strong trading performance” in the UK and Ireland with volumes currently up more than 10 per cent year-on-year. The growth was driven by long-haul and cruise.
Turnover rose by 8.5 per cent to 3.49bn euros from 3.21bn euros. Booking were up four per cent for the winter season compared to the same time last year.
Why it’s interesting
Travelopia, Tui’s division of luxury and adventure holiday brands spanning Sunsail, Jetsave and Hayes & Jarvis, was put up for sale in September last year, when Tui said it intended to focus on its core products. Travelopia has an expansive customer base of over 800,000 travellers each year and serves over 70 destinations worldwide through its 53 brands.
Its board approved the offloading of Travelopia in Hanover on Monday. The sale will result in a non-cash charge of around 133m euros, but won’t have an impact on Tui’s full-year guidance for underlying earnings before interest, tax and amortisation (Ebita) to rise by at least 10 per cent at constant currencies this year.