German tourism and shipping company TUI AG on Monday revealed a narrower net loss in the fiscal first-quarter lead by decreased administrative expenses and improvements in taxes, however, it remains confident for the remaining year.
The Hanover-based firm reported a net loss of €102.8 million ($140 million) in the three months to Dec. 31, compared with a net loss of €155.1 million the previous year while, sales squeezed 15% to €2.95 billion from €3.47 billion.
However, four analysts polled by Dow Jones Newswires speculated a net loss of €153 million on revenue of €2.95 billion on average.
TUI Travel PLC, Europe's largest travel company revealed it sales to narrow by 15% to €2.8 billion. TUI holds a 52% stake in U. K.-listed TUI Travel, which accounts for the bulk of its earnings.
"The German-speaking cruise market reflected the persistently tight economic conditions in the period", TUI said. "Lower bookings were recorded both in the volume market for premium cruises as well as in the niche market for luxury and expedition cruises".
Tourism companies generally post lower results in the winter season. The most recent results were also adversely affected by an unfavorable comparison to the year-earlier period, when business wasn't yet wounded by the economic slowdown.