TUI capital raise sends shares down
TUI, the world’s largest holiday travel company, says it will raise between €1.6 and €1.7 billion to pay down the Covid assistance money received from the German government.
(Video Transcript)
TUI shares down heavily
The world's largest holiday company, TUI, which trades in London and on the Frankfurt markets, is down heavily in today's session after it said it was going to raise capital to repay the Covid-19 support it received from the German government.
TUI share price chart
We are currently down by a margin of 6%.You can quite clearly see this drop here that we've got today, which has just been testing the 100-period moving average, It's blue line here. It's been trading with a range of between 101 and 158 since June this year. And the numbers we saw out today in terms of the overall profit loss was good. This strong summer, helping it swing back into profit.
It forecasts a solid 2023 as well. It's expected that it will raise between €1.6 billion and €1.8 billion. Most of that money will be set aside to pay back the government for those Covid payments that were due to be posted. Underlying EBIT of €409 million for the 12 months through to the end of September. This compares to the €2 billion loss it recorded in the previous year.
So the dominating news today is the fact that the company has got to raise money. But the good news is that in the long-term, things are looking up for 2023.
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