TUI Group starts off well into financial year 2012/13

The TUI Group has started into financial year 2012/13 on a slightly improved operating result. The outlook for the full year has been confirmed by the sound operating performance recorded by TUI Travel and Hotels & Resorts in the first quarter. For the overall year 2012/13, TUI continues to expect moderate turnover growth and an operating result (underlying EBITA) matching the gratifying level of the prior year. Overall, the Group result for the year (before minorities) is expected to be positive.

Turnover grew slightly by 1.4 per cent year-on-year to around 3.5 billion euros (previous year 3.4 billion euros) in the first quarter of the current financial year. The operating result (underlying EBITA) improved by around 4 per cent to a seasonally negative result of -141 million euros (previous year -147 million euros).

The Group result (before minorities) declined to a seasonal minus of 184 million euros (previous year -137 million euros). The prior year reference quarter had benefited from a positive impact of one-off effects¹.

Detailed development of TUI Travel

In the first quarter, turnover by TUI Travel rose by 1.3 per cent to around 3.4 billion euros (previous year 3.3 billion euros). Adjusted for foreign exchange effects, turnover almost matched the previous year’s level. Customer numbers decreased by 3.4 per cent. However, average selling prices rose due to the strategy of exclusive, differentiated products. The typical seasonal loss (underlying EBITA) increased year-on-year to -147 million euros (previous year -130 million euros). While the overall business performance was positive, this decline is exclusively attributable to recognition changes by TUI Travel. Compared with the prior year reference period, TUI Travel updated the parameters used for the measurement of empty leg costs for inbound customer. Excluding this effect, which will balance out over the quarterly results and thus will not have a full-year impact, TUI Travel’s operating result would have been around 12 million euros up year-on-year.

Detailed development of TUI Hotels & Resorts

At 179 million euros, the total turnover generated by the Sector was flat year-on-year. The number of bednights grew to 4.3 million versus the prior year (previous year 4.1 million) on almost flat capacity. At 74.6 per cent, bed occupancy matched the previous year’s level, with average revenues per bed up from 49 euros to 50 euros. The operating result of the Hotels & Resorts Sector climbed by almost 21 million euros to around 34 million euros (previous year 13 million euros) in the period under review. One of the reasons for this development was the sound operating performance of Riu, the largest hotel company. Moreover, Riu reported a gain on disposal from the sale of a hotel in the Balearics in the framework of its asset management. Even excluding the book profit from the divestment, the operating result of TUI Hotels & Resorts would have grown by 6 million euros to around 19 million euros.

Detailed development of Cruises

As expected, the Cruises Sector recorded substantial turnover growth, driven by a capacity expansion, to 51 million euros (previous year 40 million euros). The operating result fell to -11 million euros (previous year -8 million euros), primarily due to the start-up costs for the fleet expansion in Hapag-Lloyd Kreuzfahrten.

The Hapag-Lloyd Kreuzfahrten brand recorded a decline in its load factor of 6 percentage points to 68.1 per cent (previous year 74.1 per cent), reflecting the year-on-year rise in capacity. The average rate per passenger per day climbed by 8.1 per cent to 373 euros (previous year 345 euros). TUI Cruises (measured at equity) continued to record a positive development in the first quarter of 2012/13. The load factor improved by 1.4 percentage points to 100.2 per cent (previous year 98.8 per cent). The average rate per passenger per day rose by 2.8 per cent to 135 euros (previous year 131 euros).