18:00 Tue 10 Feb 2015
TUI AG - 1st Quarter Results
NEW TUI GROUP DELIVERS A GOOD START TO THE YEAR
HIGHLIGHTS
· 15% improvement in the underlying operating result1, excluding profit on sale of Riu Waikiki
· Travel (formerly
·
· Pleased with overall trading to date for Winter 2014/15 and Summer 2015
· Post-merger integration underway - delivery of synergies will commence during this financial year
· Mainstream strategy is progressing, from growing profitability to profitable top-line growth
· Evaluating options to manage Non-Mainstream for growth and value
· Confident of delivering full year underlying operating profit growth of 10% to 15% at constant currency1
Key Financials
|
Underlying |
Reported |
|||
€m |
Q1 14/15 |
Q1 13/14 restated2 |
Change% |
Q1 14/15 |
Q1 13/14 restated2 |
Revenue |
3,543.6 |
3,361.1 |
+5.4 |
3,543.6 |
3,361.1 |
EBITA |
-107.9 |
-141.1 |
+23.5 |
-145.0 |
-160.2 |
EBITA - excluding profit on sale of hotel, at constant currency1 |
-120.0 |
-141.1 |
+15.0 |
n/a |
n/a |
1Constant currency basis assumes that constant foreign exchange translation rates are applied to the underlying operating result in the current and prior year
2 Please refer to page 37 of the interim financial statements for further explanation of prior year restatement
Chief Executives of
"We are delighted to announce our first set of results as
Q1 Results
· Underlying operating loss reduced by
· Travel underlying operating loss of
·
· Cruises delivered underlying operating profit of
Pleased with overall trading to date for Winter 2014/15 and Summer 2015
· Winter 2014/15 is closing out in line with our expectations - 84% of the Mainstream programme sold, with higher average selling prices in most source markets.
· Pleased with overall Summer 2015 trading to date, with 1% higher average selling prices and broadly flat volumes overall.
· Excellent online performance with Mainstream Summer 2015 online bookings up by 8%.
· Continued growth in sales of unique holidays, which currently account for 78% of Mainstream Summer 2015 bookings.
· Strong trading performance continues by Accommodation Wholesaler with TTV up 23% for Winter 2014/15 and 24% for Summer 2015.
Implementing our strategy post-merger
· Integration under way, will start to deliver synergies this year.
· Mainstream strategy is progressing, from growing profitability to profitable top-line growth
· Evaluating options to manage Online Accommodation and Specialist & Activity for growth and value under the leadership of their new CEO,
· Remain committed to exiting remaining shareholding in
· Based on our Q1 result and current trading, we remain confident of delivering full year underlying operating profit growth of 10% to 15%1.
· We will hold a Capital Markets Day on
CURRENT TRADING
Winter 2014/15
In Mainstream, the Winter 2014/15 season is closing out as expected, with 84% of the programme sold and strong pricing across most of our source markets. Mainstream bookings are up 1% versus prior year, reflecting planned capacity reductions in the Nordics and
We continue to deliver sustainable growth through our unique holiday experiences, increasingly distributed online. Unique holidays account for 72% of all Mainstream bookings, up three percentage points compared with this time last year, whilst online sales continue to grow across all key source markets.
Trading by
In Accommodation Wholesaler, TTV is up 23%, driven primarily by
Current Trading1 |
Winter 2014/15 |
|||
YoY variation% |
Total ASP2 |
Total Sales2 |
Total Customers2 |
Programme sold (%) |
|
|
|
|
|
Mainstream |
|
|
|
|
|
+3 |
+6 |
+3 |
77 |
Nordics |
+5 |
-3 |
-7 |
91 |
|
Flat |
+2 |
+1 |
82 |
|
+4 |
-12 |
-16 |
87 |
Other3 |
-1 |
+2 |
+4 |
89 |
Total Mainstream |
+1 |
+2 |
+1 |
84
|
|
|
|
|
|
Accommodation Wholesaler4 |
+3 |
+23 |
+19 |
N/A |
|
|
|
|
|
1 These statistics are up to
2 These statistics relate to all customers whether risk or non-risk
3 Other includes
4 Sales refer to total transaction value (TTV) and customers refers to roomnights
Summer 2015
For Summer 2015, we remain pleased with trading to date. In Mainstream, we are still at an early stage of the booking cycle, with approximately 32% of the programme sold, in line with prior year. We are pleased with average selling prices, up 1%. In the
We continue to see strong demand for our unique holidays, which account for 78% of Mainstream bookings, up one percentage point. We are particularly pleased with the growth in unique in
As for Winter, trading by
Our Accommodation Wholesaler business has had a strong start to the year, with TTV for Summer 2015 up 24% driven by growth in
FUEL/FOREIGN EXCHANGE
Our strategy of hedging the majority of our jet fuel and currency requirements for future seasons, as detailed below, remains unchanged. This gives us certainty of costs when planning capacity and pricing. The following table shows the percentage of our forecast requirement that is currently hedged for Euros, US Dollars and jet fuel for Travel, our largest segment.
Travel |
Winter 2014/15 |
Summer 2015 |
Euro |
96% |
85% |
US Dollars |
93% |
85% |
Jet Fuel |
93% |
87% |
As at |
|
|
NET DEBT AND LIQUIDITY
The net debt position (cash and cash equivalents less loans, overdrafts and finance leases) at
We remain satisfied with our long-term debt funding and liquidity position. This includes external bank revolving credit facilities totalling
· High yield bond
· Convertible bond
· Convertible bond
· Hybrid bond
* In the context of the completion of the merger between
OUTLOOK
The new
Our post-merger integration is underway and we expect to start delivering synergies in the current financial year. In Mainstream, our strategy is progressing, from growing profitability to profitable top-line growth. In Non-Mainstream, we are evaluating our options to manage these businesses for growth and value and we remain committed to exiting our remaining shareholding in
Q1 REPORT
A full copy of our Q1 2014/15 Interim Report can be found on our corporate website: http://www.tuigroup.com/en/investors
INVESTOR & ANALYST CONFERENCE CALL & WEBCAST
A conference call and webcast for investors and analysts will take place today at
US: +1 408 916 9838
A presentation to accompany the conference call will be made available at
Details of the webcast can also be found at the same link.
Pre-Close Trading Update
Half-Year Financial Report 2014/15 & Capital Markets Day
ANALYST & INVESTOR ENQUIRIES
|
Tel: +44 (0)1293 645 831 |
|
|
Contacts for Analysts and Investors in |
|
|
Tel: +44 (0)1293 645 829 |
|
Tel: +44 (0)1293 645 827 |
Jacqui |
Tel: +44 (0)1293 645 831 |
|
|
Contacts for Analysts and Investors in Continental Europe, |
|
|
Tel: +49 (0)511 566 1435 |
|
Tel: +49 (0)511 566 1318 |
|
Tel: +49 (0)511 566 1425 |
This information is provided by RNS
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of...
FOR OUR FULL DISCLAIMER CLICK HERE