Tui-CEO: „Operational success must be the driving force for the stock“
Investors have welcomed the return of Tui's stock to the Prime Standard of the Frankfurt Stock Exchange with applause. The stock rose by almost 4% last Monday, marking a gain of around a quarter since reaching a low of 6.28 euros in early March. CEO Sebastian Ebel, however, believes there is still „room for improvement“ for the shares of the tourism company, as he told Börsen-Zeitung. „The first half of the year has gone well, and I am very confident that we will achieve our goal of increasing operating profit by at least 25%", said Ebel. From his perspective, „operational success must be the driving force for the stock.“ Tui, whose fiscal year begins on October 1, still has the most important part of the current fiscal year ahead of it. Ebel points out that bookings for the summer are already at 50%.
More long-term oriented investors
According to management, the strong volatility that the Tui stock has shown over the past year is also due to the fact that many hedge funds have been more engaged in the short term. Meanwhile, CFO Mathias Kiep notes an increasing „stabilization in the investor base.“ The company has succeeded in attracting „more long-term oriented investors“ to Tui.
The board is confident of inclusion in the MDax on June 24, when the listing on the London Stock Exchange will also end. The decision was supported almost unanimously by the shareholders' meeting (98.35% voted in favor). Tui hopes that the simplification of structures will lead to a concentration of liquidity in Frankfurt, which should also benefit the stock price.
Debt repayment before dividends
The CEO did not disclose when the Tui stock will become interesting again for investors focusing on dividends. Ebel will decide on a future dividend policy „once we have done our homework.“ First, the company needs to repay the last unused credit line of 550 million euros from KfW. Tui has fully repaid the state aid related to the pandemic. The company has until mid-2026 to use the credit line. Kiep hinted that he aims to pursue refinancing with a twelve-month lead time.