TUI AG cuts costs in drive to pay out dividends
FRANKFURT May 15 (Reuters) - German tourism group TUI AG will cut costs and align its hotels business more closely with that of unit TUI Travel as part of a shake-up aimed at a return to paying dividends in 2014/15.
TUI AG has not paid a dividend since 2007, when it made a payout of 0.25 euros.
The structure of TUI AG and 56-percent owned unit TUI Travel, which includes one headquarters in London and one in Hanover, is complicated and costly.
In a strategy update entitled oneTUI, Chief Executive Friedrich Joussen, said the TUI AG head office would cut costs by 40 percent and slash around half of its staff.
Separately, the group also published second quarter results, showing an underlying loss before interest, tax and amortisation (EBITA) of 197 million euros ($255.7 million), matching expectations in a Reuters poll.
It lifted its forecast for the year, saying it now expected underlying EBITA to improve from the record 745.7 million euros in 2011/2012, after a strong performance from TUI Travel.
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