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release.
TUI AG / 3rd Quarter Results
TUI AG: Quarterly Statement Q3 2016/17
10-Aug-2017 / 07:00 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Q3 2016/17
TUI Group - financial highlights
EUR million Q3 Q3 2015 Var. Var. % 9M 9M 2015 Var. Var. %
2016 / 16 % at 2016 / 16 % at
/ 17 restated constant / 17 restated constant
currency currency
Turnover 4,775 4,239.7 + + 16.4 11,12 10,389.3 + +11.6
.4 12.6 9.2 7.1
Underlying
EBITA1
Northern 81.0 71.9 + + 25.9 - - 49.0 - - 46.0
Region 12.7 57.0 16.3
Central 24.5 3.5 + + 597.1 - - 107.1 - - 11.3
Region 600. 119.2 11.3
0
Western - - 6.4 - - 89.1 - - 82.1 - - 39.1
Region 11.9 85.9 114.2 39.1
Hotels & 77.7 57.2 + + 31.5 200.5 153.2 + + 31.2
Resorts 35.8 30.9
Cruises 67.1 45.0 + + 54.2 142.1 94.3 + + 56.4
49.1 50.7
Other - 6.3 - 5.4 - - 22.2 - - 22.1 + + 31.6
Tourism 16.7 19.6 11.3
Tourism 232.1 165.8 + + 45.2 32.6 - 12.8 n. n. a.
40.0 a.
All other - - 4.9 - - 142.9 - - 32.7 + + 6.1
segments 10.5 114. 25.3 22.6
3
TUI Group 221.6 160.9 + + 42.3 7.3 - 45.5 n. + 94.7
37.7 a.
Discontinued 14.2 35.5 - - 57.7 - 1.1 13.7 n. - 91.4
operations 60.0 a.
Total 235.8 196.4 + + 24.2 6.2 - 31.8 n. + 96.2
20.1 a.
EBITA2,4 200.2 136.9 + - - 104.0 +
46.2 51.7 50.3
Underlying 317.3 237.3 + 290.0 203.9 +
EBITDA4 33.7 42.2
EBITDA4 301.9 220.1 + 249.6 167.1 +
37.2 49.4
Net profit / 160.6 75.9 + - - 271.0 +
loss for the 111. 84.9 68.7
period 6
(continuing
operations)
Earnings per 0.23 0.10 + - - 0.59 +
share4 EUR 130. 0.28 52.5
0
Net capex 213.3 148.0 + 908.4 391.8 +
and 44.1 131.
investments 9
Equity ratio 16.2 13.5 +
(30.6.)3 % 2.7
Net 234.3 - 458.6 n.
financial a.
position
(30.6.)4
Net - 172.4 n.
financial a.
position
(30.6.)5
Employees 65,96 62,708 +
(30.6.) 4 5 5.2
Differences may occur due to rounding.
Due to the following changes to segmental reporting, the prior year's
reference figures were restated accordingly:
Already in Q2 2016 / 17, the hotel operating company Blue Diamond Hotels and
Resorts Inc., St. Michael, Barbados, previously carried in the Northern
Region segment, was integrated in the hotel business and has therefore been
reported within Hotels & Resorts. Moreover, the British cruise business
Thomson Cruises, which had also previously been reported within the Northern
Region segment, was transferred to the Cruises segment. Moreover, due to the
planned disposal of a large part of the Specialist Group segment
(Travelopia, carried as discontinued operation since 30 September 2016) -
Crystal Ski and Thomson Lakes & Mountains were reclassified to Northern
Region. The disposal of Travelopia was completed in Q3 2016 / 17.
1 In order to explain and evaluate the operating performance by the
segments, EBITA adjusted for one-off effects (underlying EBITA) is
presented. Underlying EBITA has been adjusted for gains / losses on disposal
of investments, restructuring costs according to IAS 37, ancillary
acquisition costs and conditional purchase price payments under purchase
price allocations and other expenses for and income from one-off items.
2 EBITA comprises earnings before net interest result, income tax and
impairment of goodwill excluding losses on container shipping and excluding
the result from the measurement of interest hedges.
3 Equity divided by balance sheet total in %, variance is given in
percentage points.
4 Continuing operations
5 Discontinued operations, includes Hotelbeds Group only
Consistently delivering on our growth strategy
- Strong performance in Q3 with 19 % growth in like for like 1 underlying
EBITA (38 % growth including Easter and foreign exchange translation)
- Good demand for the rest of Summer 2017 for our hotels, cruises and
holidays
- Disposal of Travelopia & Hapag-Lloyd AG shares complete - proceeds will be
reinvested in transforming the business and strengthening the balance sheet
- Financial performance reflects success of our strategy - TUI Group has
delivered its first positive 9M underlying EBITA, as well as a significant
improvement in operating cash flow
- Reiterate our guidance of at least 10 % growth in underlying EBITA in 2016
/ 17 1 and at least 10 % underlying EBITA CAGR to 2018 / 19 1
- Strength of our integrated model and balanced portfolio of destinations
leave us well placed to deliver sustainable growth into the longer term
1 At constant foreign exchange rates applied in the current and prior
period, based on the current Group structure and excluding timing impact of
Easter (Q3 only).
Strong Q3 performance
results at a glance
EUR million Q3 9M
Underlying EBITA 2015 / 16 180 - 57
Restatements (including Travelopia treated as - 19 + 12
discontinued operations)
Underlying EBITA 2015 / 16 restated 2 161 - 45
Underlying trading + 24 + 48
Merger synergies + 5 + 15
Year on year impact of aircraft financing + 1 + 3
TUI fly sickness - - 24
Like for like underlying EBITA 2016 / 17 2 191 - 3
Easter timing impact + 38 -
Foreign exchange translation - 7 + 10
Underlying EBITA 2016 / 17 2 222 7
2 Continuing operations
- Hotels & Resorts continued to deliver growth in Q3, driven by good
performances in Riu, Robinson and Blue Diamond. Occupancy increased by 3 %
points to 74 %, with a 2 % increase in average revenue per bed 3
- We have opened 10 new hotels since the end of the financial year 2015 /
16, bringing the total new hotel openings since merger to 28. Five further
openings are scheduled this Winter for Riu, Robinson and Blue Diamond, as
well as further repositionings to TUI Blue
- Cruises delivered strong growth in the quarter, with the launch of Mein
Schiff 6 (TUI Cruises) and TUI Discovery 2 (Thomson Cruises) and a further
increase in earnings at Hapag-Lloyd Cruises. Average daily rates were up
across all three brands, with consistently high occupancy
- Source Markets delivered a like for like increase in earnings this
quarter, with a significant improvement in performance in Nordics and
Germany partly offset, as expected, by the impact of currency cost inflation
in the UK
- Demand for our holidays remains high, with customer volumes up 7 % in the
year to date and an increase in direct and online distribution to 73 % and
46 % respectively in the quarter. The TUI rebrand has been a success in
Nordics and Belgium, and we are preparing for the UK launch this Autumn
- We have extended further the maturity date of our EUR 1.75 billion
revolving credit facility to July 2022
3 Hotels & Resorts occupancy rate figures currently exclude Blue Diamond
Details see segmental performance section on pages 5 to 8
Current trading
Summer 2017
Summer 2017 remains in line with our expectations, with good demand for our
hotels, cruises and holidays.
In Hotels & Resorts, demand remains strong for Spain (including Canaries),
Greece, Cape Verde, Italy, Cyprus and the Caribbean. Demand has also
improved for North Africa and (in recent weeks) Turkey. We added two new TUI
Blue properties in Tuscany and Croatia for this Summer, which are performing
in line with our expectations.
In Cruises, following the launch of TUI Discovery 2 and Mein Schiff 6,
demand remains strong as our UK and German customers continue to enjoy the
wider range of itineraries on offer and our local offering.
The Source Markets' programme, which includes sales of holidays to our own
and third party hotels, is 88 % sold, in line with prior year. Bookings are
4 % ahead of prior year, driven by growth in demand for Greece, Bulgaria,
Croatia, Italy, Cape Verde and long haul. Customers continue to book
increasingly direct and online.
In the UK, as we expected, demand for our holidays remains resilient.
Bookings have remained at the same high level as prior year, despite the
impact on pricing from cost inflation, in particular due to the weaker Pound
Sterling. We believe that this is testament to the popularity of our
holidays and to the high level of priority our customers place on them. We
will continue to offer good value for money with a range of products and
destinations, and remain the clear market leader.
Current trading Summer 2017 *
YoY variance % Total revenue Total Total ASP Programme
custormers sold (%)
Northern Region + 8 + 1 + 7 88
UK + 7 - + 7 88
Memo: UK incl. + 9 + 1 + 8 88
Thomson Cruises
Nordics + 13 + 5 + 8 89
Central Region + 10 + 7 + 3 86
Germany + 7 + 4 + 3 86
Western Region + 7 + 3 + 3 90
Benelux + 7 + 3 + 3 90
Total source + 8 + 4 + 5 88
markets
Memo: Total + 9 + 4 + 5 88
source markets
incl. Thomson
Cruises
* These statistics are up to 30 July 2017, shown on a constant currency
basis and relate to all customers whether risk or non-risk.
Future Seasons
At this early stage, trading for future seasons is in line with our
expectations. In Hotels & Resorts we will continue to grow in year round
destinations, with the opening of five new hotels and clubs this Winter for
Riu (in Mexico), Robinson (one club in Thailand and one in Maldives) and
Blue Diamond (two hotels in Dominican Republic). There will also be further
repositionings to our TUI Blue brand, as we continue to simplify and enhance
our customer offering.
In Cruise, growth will be driven by the first Winter of operations of our
new ships, as well as the launch in Summer 2018 of the new Mein Schiff 1 in
Germany and TUI Explorer (the current Mein Schiff 1) in the UK. We are
pleased with the development of bookings and rates for both the new and
existing fleet, with demand remaining very strong in both the UK and German
markets.
In Source Markets, we are continuing to shape our programme for Winter 2017
/ 18 and retain a significant degree of flexibility at this early stage when
it comes to capacity planning for Summer 2018. In line with prior years,
Winter 2017 / 18 is around 25 % booked. Bookings are currently up 9 % and
average selling prices up 3%, with growth driven by long haul, Cape Verde
and Canaries. We are looking forward to the UK rebrand, which will commence
in the Autumn.
Disposal of Travelopia and Hapag-Lloyd shares
As part of strategy announced at the time of the merger, TUI Group has been
working to simplify its business model. On 15 June 2017, TUI Group completed
the disposal of Travelopia to KKR for an enterprise value of GBP 325 million,
equating to 14.4 times 2015 / 16 underlying EBITA or 7.7 times underlying
EBITDA (pro forma basis). Following some open market disposal earlier on
this year, TUI disposed of its remaining shares in Hapag-Lloyd AG on 10 July
2017. Total net proceeds from the disposal of Hapag-Lloyd AG shares were EUR
407 million.
As outlined in TUI's full year results presentation in December 2016, these
disposal proceeds will be reinvested in the transformation of TUI as the
world's leading integrated tourism business, focused on own hotel and cruise
brands, and to further strengthen TUI's balance sheet. In this context, TUI
is contemplating to structure the intended cruise ship acquisitions
(currently operated as Mein Schiff 1 and Mein Schiff 2) by TUI UK from TUI
Cruises GmbH (50 % JV with Royal Caribbean Cruises Ltd.) in 2018 and 2019 as
a straight cash transaction.
Outlook
Based on the strong year to date result and trading for the remainder of
Summer 2017, we reiterate our guidance of at least 10 % growth in underlying
EBITA in 2016 / 17 *. In addition, we expect the following:
- Turnover growth in excess of our previous guidance of around 3 %,
reflecting our strong year to date performance and current trading.
- Net debt as at 30 September 2017 broadly neutral *, compared with previous
net debt guidance of approximately EUR 0.8 billion *, reflecting the receipt
of proceeds from the Travelopia and Hapag-Lloyd AG share disposals.
- Based on current foreign exchange rates, we expect approximately EUR 10
million adverse impact on underlying EBITA compared with rates prevailing in
the prior year.
As we near the end of the third year following the merger with TUI Travel,
we have consistently delivered on our growth strategy. The merger synergies
will be delivered in full by the end of the current financial year, and we
have implemented a new management structure and an integrated decision
making process based on six common global platforms. With the sale of
Travelopia and the shares in Hapag-Lloyd AG our non-core disposal programme
has been completed and marks a significant step in our transformation as the
world's leading integrated tourism business. Our financial performance
already reflects the success of this transformation, with TUI Group now
having delivered its first positive 9M underlying EBITA, as well as a
significant improvement in operating cash flow.
Our operational experience, scalable integrated model and balanced portfolio
of destinations mean that we are well placed to deal with the challenges
against the wider macroeconomic and geopolitical backdrop, and to deliver
sustainable growth into the longer term. We therefore also reiterate our
guidance of at least 10 % underlying EBITA CAGR to 2018 / 19 *, and will
provide an update on our growth strategy at our full year results
presentation in December 2017.
* At constant foreign exchange rates applied in the current and prior
period, and based on the current group structure.
Consolidated earnings
Turnover
EUR million Q3 2016 Q3 2015 Var. % 9M 2016 9M 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Northern 1,727.8 1,660.7 + 4.0 3,932.1 3,989.9 - 1.4
Region
Central 1,557.5 1,346.3 + 15.7 3,585.5 3,333.4 + 7.6
Region
Western 926.3 734.6 + 26.1 2,040.3 1,650.2 + 23.6
Region
Hotels & 151.3 143.2 + 5.7 451.3 409.2 + 10.3
Resorts
Cruises 214.3 171.0 + 25.3 560.2 479.9 + 16.7
Other 145.5 143.8 + 1.2 435.9 433.8 + 0.5
Tourism
Tourism 4,722.7 4,199.6 + 12.5 11,005. 10,296.4 + 6.9
3
All other 52.7 40.1 + 31.4 123.9 92.9 + 33.4
segments
TUI Group 4,775.4 4,239.7 + 12.6 11,129. 10,389.3 + 7.1
2
TUI Group at 4,936.1 4,239.7 + 16.4 11,596. 10,389.3 + 11.6
constant 0
currency
Discontinued 282.7 584.7 - 51.7 829.0 1,652.2 - 49.8
operations
Total 5,058.1 4,824.4 + 4.8 11,958. 12,041.5 - 0.7
2
Underlying EBITA
EUR million Q3 2016 Q3 2015 Var. % 9M 2016 9M 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Northern 81.0 71.9 + 12.7 - 57.0 - 49.0 - 16.3
Region
Central 24.5 3.5 + 600.0 - 119.2 - 107.1 - 11.3
Region
Western - 11.9 - 6.4 - 85.9 - 114.2 - 82.1 - 39.1
Region
Hotels & 77.7 57.2 + 35.8 200.5 153.2 + 30.9
Resorts
Cruises 67.1 45.0 + 49.1 142.1 94.3 + 50.7
Other - 6.3 - 5.4 - 16.7 - 19.6 - 22.1 + 11.3
Tourism
Tourism 232.1 165.8 + 40.0 32.6 - 12.8 n. a.
All other - 10.5 - 4.9 - 114.3 - 25.3 - 32.7 + 22.6
segments
TUI Group 221.6 160.9 + 37.7 7.3 - 45.5 n. a.
TUI Group at 229.0 160.9 + 42.3 - 2.4 - 45.5 + 94.7
constant
currency
Discontinued 14.2 35.5 - 60.0 - 1.1 13.7 n. a.
operations
Total 235.8 196.4 + 20.1 6.2 - 31.8 n. a.
EBITA
EUR million Q3 2016 Q3 2015 Var. % 9M 2016 9M 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Northern 63.8 67.2 - 5.1 - 84.3 - 64.3 - 31.1
Region
Central 23.8 1.4 n. a. - 116.4 - 115.6 - 0.7
Region
Western - 12.8 - 8.8 - 45.5 - 141.6 - 88.2 - 60.5
Region
Hotels & 77.7 56.1 + 38.5 197.7 151.3 + 30.7
Resorts
Cruises 67.1 45.0 + 49.1 142.1 94.3 + 50.7
Other - 6.7 - 9.8 + 31.6 - 21.6 - 29.8 + 27.5
Tourism
Tourism 212.9 151.1 + 40.9 - 24.1 - 52.3 + 53.9
All other - 12.7 - 14.2 + 10.6 - 27.6 - 51.7 + 46.6
segments
TUI Group 200.2 136.9 + 46.2 - 51.7 - 104.0 + 50.3
Discontinued 0.3 26.0 - 98.8 - 21.9 - 45.7 + 52.1
operations
Total 200.5 162.9 + 23.1 - 73.6 - 149.7 + 50.8
Segmental performance in Q3 2016 / 17
Northern Region
Q3 2016 Q3 2015 Var. % 9M 2016 9M 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Turnoverin 1,727.8 1,660.7 + 4.0 3,932.1 3,989.9 - 1.4
EUR million
Underlying 81.0 71.9 + 12.7 - 57.0 - 49.0 - 16.3
EBITAin EUR
million
Underlying 90.5 71.9 + 25.9 - 71.6 - 49.0 - 46.0
EBITA at
constant
currencyin
EUR million
Direct 93 92 + 1 92 91 + 1
distributio
n1 in %,
variance in
% points
Online 63 62 + 1 63 60 + 3
distributio
n2 in %,
variance in
% points
Customersin 2,113 2,026 + 4.3 4,476 4,276 + 4.7
'000
1 Share of sales via own channels (retails and online); incl. Thomson
Cruises
2 Share of online sales; incl. Thomson Cruises
- Northern Region continues to deliver leading levels of direct and
online distribution, at 93 % and 63 % respectively in Q3 2016 / 17.
Customer volumes grew by 4 % in the same period.
- As outlined at H1 2016 / 17, the underlying EBITA result for Q3 2016 / 17
includes approximately EUR 20 m benefit from the later timing of Easter.
- UK customer volumes increased by 5 % in the quarter, reflecting the later
timing of Easter. 60 % of Q3 2016 / 17 holidays in the UK were booked
online. Demand for our holidays remains resilient in the UK.This resilience,
coupled with a continued focus on efficiency, means that we have been able
to mitigate to an extent the impact of the weaker Pound Sterling.
- Nordics delivered a significant improvement in earnings in the quarter.
The business has successfully rebalanced its programme with more emphasis on
destinations such as Greece and the Canaries. In addition, the roll out of
the Group automated yielding solution is helping to drive superior margins.
Performance was also aided by the TUI rebrand. Customer volumes increased by
3 %, partly reflecting the later timing of Easter. Online bookings mix
increased by 3 % points to 80 %.
Central Region
Q3 2016 Q3 2015 Var. % 9M 2016 9M 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Turnoverin 1,557.5 1,346.3 + 15.7 3,585.5 3,333.4 + 7.6
EUR million
Underlying 24.5 3.5 + 600.0 - 119.2 - 107.1 - 11.3
EBITAin EUR
million
Underlying 24.4 3.5 597.1 - 119.2 - 107.1 - 11.3
EBITA at
constant
currencyin
EUR million
- -
Direct 49 48 + 1 48 46 + 2
distributio
n1 in %,
variance in
% points
Online 19 15 + 4 18 15 + 3
distributio
n2 in %,
variance in
% points
Customersin 2,054 1,810 + 13.5 4,201 4,025 + 4.4
'000
1 Share of sales via own channels (retails and online)
2 Share of online sales
- Central Region has continued to increase the share of bookings via direct
and online channels, to 49 % and 19 % respectively. Customer volumes grew by
14 % in the same period.
- The underlying EBITA result for Q3 2016 / 17 includes approximately EUR 4
m phasing benefit from the later timing of Easter.
- Germany has continued to build on its market share gains with an increased
range of holidays and departure airports on offer, delivering an improved
trading performance in the quarter. Customer volumes increased by 11 %,
reflecting the later timing of Easter and the later timing of the Whitsun
holiday which increased volume and margin.
- On 8 June 2017 TUI Group and Etihad Aviation Group announced that they
would not continue their negotiations for a planned joint venture between
the German aviation subsidiary TUI fly and Niki. As previously stated, we
will continue to push the repositioning of TUI fly further ahead in order to
develop long-term prospects for the airline and its employees.
Western Region
Q3 2016 Q3 2015 Var. % 9M 2016 9M 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Turnover in 926.3 734.6 + 26.1 2,040.3 1,650.2 + 23.6
EUR million
Underlying - 11.9 - 6.4 - 85.9 - 114.2 - 82.1 - 39.1
EBITA in
EUR million
Underlying - 12.1 - 6.4 - 89.1 - 114.2 - 82.1 - 39.1
EBITA at
constant
currency in
EUR million
Direct 72 70 + 2 72 70 + 2
distributio
n1 in %,
variance in
% points
Online 53 51 + 2 55 52 + 3
distributio
n2 in %,
variance in
% points
Customersin 1,589 1,360 + 16.8 3,424 3,032 + 12.9
'000
1 Share of sales via own channels (retails and online)
2 Share of online sales
- Western Region increased further the share of bookings via direct and
online channels, to 72 % and 53 % respectively for Q3 2016 / 17.
- The result reflects the first time inclusion of Transat (small loss in the
quarter), as well as the impact of rebrand costs in Belgium. These were
partly offset by the EUR 5 m benefit of the later timing of Easter.
- Benelux delivered a good improvement in the quarter, following the attacks
on Brussels Airport last year and reflecting the successful TUI rebrand.
Customer volumes were up 9 %, with online bookings mix up 3 % points to 59
%. In France, the underlying result was offset partly by the timing of
income statement credits in the prior year and inclusion of Transat losses.
The integration of Transat is progressing to plan, with the delivery of
synergies to commence in the next financial year.
Hotels & Resorts
Q3 2016 Q3 2015 Var. % 9M 2016 9M 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Total 339.1 300.9 + 12.7 903.7 831.2 + 8.7
turnover
in EUR
million
Turnover 151.3 143.2 + 5.7 451.3 409.2 + 10.3
in EUR
million
Underlying 77.7 57.2 + 35.8 200.5 153.2 + 30.9
EBITA in
EUR
million
Underlying 75.2 57.2 + 31.5 200.9 153.2 + 31.2
EBITA at
constant
currency
rates in
EUR
million
Capacity 10,518.9 9,795.6 + 7.4 24,806.6 23,765.9 + 4.4
hotels
total1,4
in '000
Riu 4,777.3 4,565.5 + 4.6 13,160.2 12,935.6 + 1.7
Robinson 960.0 895.2 + 7.2 2,126.9 2,038.4 + 4.3
Occupancy 74.3 71.6 + 2.7 74.6 74.0 + 0.6
rate
hotels
total2 in
%,
variance
in %
points
Riu 88.2 86.2 + 2.0 88.2 87.2 + 1.0
Robinson 57.8 59.8 - 2.0 60.3 61.9 - 1.6
Average 54.57 53.47 + 2.1 60.43 58.37 + 3.5
revenue
per bed
hotels
total3 in
EUR
Riu 58.70 54.74 + 7.2 65.44 61.21 + 6.9
Robinson 82.49 82.29 + 0.2 88.55 86.95 + 1.8
These statistics include former TUI Travel hotels; Blue Diamond included in
underlying EBITA
1 Group owned or leased hotel beds multiplied by opening days per quarter
2 Occupied beds divided by capacity
3 Arrangement revenue divided by occupied beds
4 Previous year's KPIs restated
- Our popular brands, integrated model and strong presence in year round
destinations continue to drive high levels of occupancy, up 3 % points to 74
%, with a 2 % increase in average revenue per bed.
- The result includes EUR 9 m benefit from the later timing of Easter.
- Riu continued to deliver a good performance, particularly in Spain and
Mexico. Capacity increased by 5 % in the quarter, including the new Riu
Reggae in Jamaica and closures for renovations in the prior year. Occupancy
increased further to 88 %, with a 7 % increase in average revenue per bed.
- Robinson also delivered a good performance in the quarter. Although
occupancy was impacted by lower demand for clubs in Turkey, this was offset
by a strong performance in Greece, Spain and Portugal.
- Blue Diamond delivered further growth in earnings, as it continues its
expansion in the Caribbean.
Cruises
Q3 2016 Q3 2015 Var. % 9M 2016 9M 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Turnover1 214.3 171.0 + 25.3 560.2 479.9 + 16.7
in EUR
million
Underlying 67.1 45.0 + 49.1 142.1 94.3 + 50.7
EBITA in
EUR million
Underlying 69.4 45.0 + 54.2 147.5 94.3 + 56.4
EBITA at
constant
currency
rates in
EUR million
Occupancyin
%, variance
in % points
Hapag-Lloyd 73.1 73.4 - 0.3 73.6 74.4 - 0.8
Cruises
TUI Cruises 101.2 101.2 - 100.2 101.0 - 0.8
Thomson 100.3 99.3 + 1.0 99.9 98.3 + 1.6
Cruises
Passenger
days in
'000
Hapag-Lloyd 86,348 87,654 - 1.5 250,042 253,952 - 1.5
Cruises
TUI Cruises 1,094,67 775,819 + 41.1 3,125,37 2,408,91 + 29.7
5 3 2
Thomson 753,496 530,099 + 42.1 1,843,47 1,382,85 + 33.4
Cruises 4 9
Average
daily
rates2 in
EUR
Hapag-Lloyd 562 546 + 2.9 584 556 + 5.0
Cruises
TUI Cruises 183 179 + 2.2 160 158 + 1.3
Thomson 163 154 + 5.8 161 151 + 6.6
Cruises3
1 No turnover is carried for TUI Cruises as the joint venture is
consolidated at equity
2 Per day and passenger
3 KPI revenue, inclusive all package elements
- TUI Cruises continues to deliver significant growth in its all inclusive
German offering, whilst maintaining a strong occupancy and rate performance.
Mein Schiff 6 was launched during the quarter, initially based in Kiel
(Germany) before moving to New Jersey for itineraries in the USA and
Caribbean.
- Thomson Cruises delivered significant growth in earnings, with
continued modernisation of the fleet, including the launch of TUI Discovery
2 in the Mediterranean. There was also a good rate and occupancy performance
across the fleet as UK demand for cruise remains very strong.
- Earnings for Hapag-Lloyd Cruises increased in the quarter, with overall
increased average daily rate and good expedition cruise performance
offsetting the lower number of operating days.
Other tourism
EUR Q3 2016 Q3 2015 Var. % 9M 2016 9M 2015 Var. %
million / 17 / 16 / 17 / 16
restated restated
Turnover 145.5 143.8 + 1.2 435.9 433.8 + 0.5
Underlying - 6.3 - 5.4 - 16.7 - 19.6 - 22.1 + 11.3
EBITA
Underlying - 6.6 - 5.4 - 22.2 - 15.1 - 22.1 + 31.6
EBITA at
constant
currency
- Destination Services continued to deliver an improved result in the
quarter, including further synergies.
- This was partly offset by performance at Corsair where there was a more
competitive trading environment in the quarter.
Cash flow / Net capex and investments / Net financial position
The cash inflow from operating activities increased by EUR 339.7 m year-on-
year. This was mainly driven by better trading and an improved working
capital due to the disposal of the Hotelbeds Group.
The net financial position of the continuing operations improved from EUR-
458.6 million (30 June 2016) to EUR 234.3 million (30 June 2017),
reflecting amongst others the receipt of proceeds from the Travelopia and
Hapag-Lloyd AG share disposals.
Net capex and investments
EUR million Q3 2016 Q3 2015 Var. % 9M 2016 9M 2015 Var. %
/ 17 / 16 / 17 / 16
Cash gross
capex
Northern 13.7 - 5.8 n. a. 38.9 24.3 + 60.1
Region
Central 4.8 2.7 + 77.8 12.2 11.8 + 3.4
Region
Western 6.1 5.2 + 17.3 19.7 12.9 + 52.7
Region
Hotels & 55.8 79.2 - 29.5 186.5 187.6 - 0.6
Resorts
Cruises 26.9 8.9 + 202.2 274.7 32.2 + 753.1
Other 37.8 24.9 + 51.8 86.9 68.5 + 26.9
Tourism
Tourism 145.1 115.1 + 26.1 618.9 337.3 + 83.5
All other 1.9 3.3 - 42.4 3.7 18.0 - 79.4
segments
TUI Group 147.0 118.4 + 24.2 622.6 355.3 + 75.2
Discontinued 18.0 24.2 - 25.6 28.6 56.7 - 49.6
operations
Total 165.0 142.6 + 15.7 651.2 412.0 + 58.1
Net pre 78.5 - 3.9 n. a. 195.9 17.4 n. a.
delivery
payments on
aircraft
Financial 3.6 12.7 - 71.7 106.7 26.7 + 299.6
investments
Divestments - 33.8 - 3.4 - 894.1 - 45.4 - 64.3 + 29.4
Net capex 213.3 148.0 + 44.1 908.4 391.8 + 131.9
and
investments
The increase in cash gross capex in the Cruises sector mainly resulted from
the purchase of the cruise liner TUI Discovery 2.
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 our Source Markets,
which account for over 90 % of our Group currency and fuel exposure.
Foreign Exchange/Fuel
% Summer 2017 Winter 2017 / 18 Summer 2018
Euro 97 82 40
US Dollar 96 87 64
Jet Fuel 95 91 79
As at 3 August 2017
Financial position
Financial position of the TUI Group as at 30 Jun 2017
EUR million 30 June 2017 30 Sep 2016
Assets
Goodwill 2,893.7 2,853.5
Other intangible assets 567.8 545.8
Property, plant and 4,292.9 3,714.5
equipment
Investments in joint 1,253.4 1,180.8
ventures and associates
Financial assets available 69.8 50.4
for sale
Trade receivables and other 417.4 315.3
assets
Derivative financial 62.0 126.8
instruments
Deferred tax assets 450.8 344.7
Non-current assets 10,007.8 9,131.8
Inventories 113.6 105.2
Financial assets available 289.1 265.8
for sale
Trade receivables and other 1,956.1 1,320.1
assets
Derivative financial 250.7 544.6
instruments
Income tax assets 102.5 87.7
Cash and cash equivalents 2,226.5 2,072.9
Assets held for sale 0.1 929.8
Current assets 4,938.6 5,326.1
14,946.4 14,457.9
Equity and liabilities
Equity and liabilities
Subscribed capital 1,500.7 1,500.7
Capital reserves 4,192.2 4,192.2
Revenue reserves - 3,844.2 - 3,017.8
Equity before non-controlling interest 1,848.7 2,675.1
Non-controlling interest 567.7 573.1
Equity 2,416.4 3,248.2
Pension provisions and similar obligations 1,295.6 1,410.3
Other provisions 794.4 803.0
Non-current provisions 2,090.0 2,213.3
Financial liabilities 1,794.2 1,503.4
Derivative financial instruments 60.6 27.5
Income tax liabilities 150.9 22.2
Deferred tax liabilities 62.5 62.9
Other liabilities 158.9 160.1
Non-current liabilities 2,227.1 1,776.1
Non-current provisions and liabilities 4,317.1 3,989.4
Pension provisions and similar obligations 41.3 40.6
Other provisions 383.7 374.8
Current provisions 425.0 415.4
Financial liabilities 198.0 537.7
Trade payables 2,209.1 2,476.9
Derivative financial instruments 186.0 249.6
Income tax liabilities 55.7 196.0
Other liabilities 5,139.1 2,872.4
Current liabilities 7,787.9 6,332.6
Liabilities related to assets held for sale - 472.3
Current provisions and liabilities 8,212.9 7,220.3
14,946.4 14,457.9
Income statement
Income statement of the TUI Group for the period from 1
Oct 2016 to 30 Jun 2017
EUR million Q3 2016 Q3 2015 Var. % 9M 2016 9M 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Turnover 4,775.4 4,239.7 + 12.6 11,129. 10,389.3 + 7.1
2
Cost of sales 4,339.2 3,863.3 + 12.3 10,467. 9,750.7 + 7.3
1
Gross profit 436.2 376.4 + 15.9 662.1 638.6 + 3.7
Administrative 300.4 281.2 + 6.8 901.5 875.0 + 3.0
expenses
Other income 4.1 2.8 + 46.4 9.2 31.2 - 70.5
Other expenses - 0.4 2.7 n. a. 1.8 5.9 - 69.5
Financial 42.9 14.0 + 79.9 32.5 + 145.8
income 206.4
Financial 34.2 43.7 - 21.7 115.3 243.4 - 52.6
expenses
Share of 54.3 38.3 + 41.8 159.9 103.0 + 55.2
result of
joint ventures
and associates
Earnings 203.3 103.9 + 95.7 - 107.5 - 319.0 + 66.3
before income
taxes
Income taxes 42.7 28.0 + 52.5 - 22.6 - 48.0 + 52.9
Result from 160.6 75.9 + - 84.9 - 271.0 + 68.7
continuing 111.6
operations
Result from - 88.7 31.0 n. a. - 151.8 - 17.0 - 792.9
discontinued
operations
Group profit / 71.9 106.9 - 32.7 - 236.7 - 288.0 + 17.8
loss for the
year
Group profit / 47.7 86.9 - 45.1 - 315.2 - 362.0 + 12.9
loss for the
year
attributable
to
shareholders
of TUI AG
Group profit / 24.2 20.0 + 21.0 78.5 74.0 + 6.1
loss for the
year
attributable
to
non-controllin
g interest
Cash flow statement
Condensed cash flow statement of the TUI Group
EUR million 9M 2016 / 17 9M 2015 / 16
Cash inflow from operating 1,380.6 1,040.9
activities
Cash outflow from investing - 841.0 - 385.3
activities
Cash outflow from financing - 685.0 - 566.2
activities
Net change in cash and cash - 145.4 89.4
equivalents
Change in cash and cash - 31.7 78.5
equivalents due to exchange rate
fluctuation
Cash and cash equivalents at 2,403.6 1,682.2
beginning of period
Cash and cash equivalents at end 2,226.5 1,850.1
of period
of which included in the balance - 187.3
sheet as assets held for sale
Alternative performance measures
Key indicators used to manage the TUI Group are EBITA and underlying EBITA.
We consider EBITA to be the most suitable performance indicator for
explaining the development of the TUI Group's operating performance. EBITA
comprises earnings before interest, taxes and goodwill impairments; it does
not include the results from container shipping operations nor the results
from the measurement of interest hedging instruments.
The table below shows a reconciliation of earnings before taxes from
continuing operations to underlying earnings. In 9M 2016 / 17, adjustments
including purchase price allocations worth EUR 59.0 m for continuing
operations were nearly flat year-on-year. Material adjustments in 9M 2016 /
17 related to expenses of around EUR 24m for the integration of
the French TUI tour operator following the acquisition of Transat.
Adjustments made in Q3 also included one-off costs of around EUR 11 m in
relation to IT restructuring projects in Northern Region. Material income
was generated from the reversal of a restructuring provision no longer
required in Central Region.
Reconciliation to underlying EBITA From continuing
operations
EUR million Q3 2016 Q3 2015 Var. % 9M 2016 9M 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Earnings 203.3 103.9 + 95.7 - 107.5 - 319.0 + 66.3
before
income taxes
less / plus: - 32.9 - n. a. - 35.2 100.3 n. a.
Result from
the partial
sale /
measurement
in Container
Shipping
plus: Net 29.8 33.0 - 9.7 91.0 114.7 - 20.7
interest
expense and
expense from
the
measurement
of interest
hedges
EBITA 200.2 136.9 + 46.2 - 51.7 - 104.0 + 50.3
Adjustments:
less: Profit - 2.1 - - 1.4 0.9
on disposals
(prior year
losses)
plus: - 2.0 17.1 7.5
Restructurin
g expense
plus: 7.0 7.7 22.2 25.3
Expense from
purchase
price
allocation
plus: 16.5 14.3 21.1 24.8
expense /
less: income
from other
one-off
items
Underlying 221.6 160.9 + 37.7 7.3 - 45.5 n. a.
EBITA
Key figures of income statement From continuing operations
Key figures of income statement From continuing operations
EUR million Q3 2016 Q3 2015 Var. % 9M 2016 9M 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Earnings 496.7 423.8 + 17.2 811.7 763.2 + 6.4
before
interest,
income
taxes,
depreciation
, impairment
and rent
(EBITDAR)
Operating 194.8 203.7 - 4.4 562.1 596.1 - 5.7
rental
expenses
Earnings 301.9 220.1 + 37.2 249.6 167.1 + 49.4
before
interest,
income
taxes,
depreciation
and
impairment
(EBITDA)
Depreciation 101.7 83.2 + 22.2 301.3 271.1 + 11.1
/
amortisation
less
reversals
of
depreciation
*
Earnings 200.2 136.9 + 46.2 - 51.7 - 104.0 + 50.3
before
interest,
income taxes
and
impairment
of goodwill
(EBITA)
Earnings 200.2 136.9 + 46.2 - 51.7 - 104.0 + 50.3
before
interest and
income taxes
(EBIT)
Interest 29.8 33.0 - 9.7 91.0 114.7 - 20.7
result and
earnings
from the
measurement
of interest
hedges
Result from - 32.9 - n. a. - 35.2 100.3 n. a.
the partial
sale /
measurement
of shares in
Container
Shipping
Earnings 203.3 103.9 + 95.7 - 107.5 - 319.0 + 66.3
before
income taxes
(EBT)
* On property, plant and equipment, intangible asssets, financial and other
assets
Other segment indicators
Underlying EBITDA
EUR million Q3 2016 Q3 2015 Var. % 9M 2016 9M 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Northern 101.2 72.0 + 40.6 - 9.6 - 20.2 + 52.5
Region
Central 27.6 8.4 + 228.6 - 106.4 - 92.6 - 14.9
Region
Western - 8.2 - 2.7 - 203.7 - 101.8 - 70.6 - 44.2
Region
Hotels & 98.0 77.7 + 26.1 265.9 216.1 + 23.0
Resorts
Cruises 83.0 56.9 + 45.9 184.6 126.9 + 45.5
Other 9.8 7.9 + 24.1 25.8 15.3 + 68.6
Tourism
Tourism 311.4 220.2 + 41.4 258.5 174.9 + 47.8
All other 5.9 17.1 - 65.5 31.5 29.0 + 8.6
segments
TUI Group 317.3 237.3 + 33.7 290.0 203.9 + 42.2
Discontinued 14.2 42.8 - 66.8 - 1.0 50.6 n. a.
operations
Total 331.5 280.1 + 18.4 289.0 254.5 + 13.6
EBITDA
EUR million Q3 2016 Q3 2015 Var. % 9M 2016 9M 2015 Var. %
/ 17 / 16 / 17 / 16
restated restated
Northern 87.0 70.7 + 23.1 - 27.8 - 25.2 - 10.3
Region
Central 27.1 6.8 + 298.5 - 102.5 - 99.4 - 3.1
Region
Western - 6.9 - 4.1 - 68.3 - 125.7 - 73.9 - 70.1
Region
Hotels & 98.0 77.7 + 26.1 265.2 217.5 + 21.9
Resorts
Cruises 83.0 56.9 + 45.9 184.6 126.9 + 45.5
Other 9.1 3.4 + 167.6 24.0 7.5 + 220.0
Tourism
Tourism 297.3 211.4 + 40.6 217.8 153.4 + 42.0
All other 4.6 8.7 - 47.1 31.8 13.7 + 132.1
segments
TUI Group 301.9 220.1 + 37.2 249.6 167.1 + 49.4
Discontinued 0.3 36.8 - 99.2 - 21.8 7.7 n. a.
operations
Total 302.2 256.9 + 17.6 227.8 174.8 + 30.3
Cautionary statement regarding forward-looking statements
The present Quarterly Statement contains various statements relating to
TUI's future development. These statements are based on assumptions and
estimates. Although we are convinced that these forward-looking statements
are realistic, they are not guarantees of future performance since our
assumptions involve risks and uncertainties that could cause actual results
to differ materially from those anticipated. Such factors include market
fluctuations, the development of world market prices for commodities and
exchange rates or fundamental changes in the economic environment. TUI does
not intend to and does not undertake any obligation to update any
forward-looking statements in order to reflect events or developments after
the date of this Statement.
Analyst and investor enquiries
Peter Krüger
Director of Investor Relations and Special Projects
Tel.: + 49 (0)511 566 1440
Contacts for Analysts and Investors in UK, Ireland and Americas
Sarah Coomes
Head of Investor Relations
Tel.: + 44 (0)1293 645 827
Hazel Chung
Investor Relations Manager
Tel.: + 44 (0)1293 645 823
Contacts for Analysts and Investors in Continental Europe, Middle East and
Asia
Nicola Gehrt
Head of Investor Relations
Tel.: + 49 (0)511 566 1435
Ina Klose
Investor Relations Manager
Tel.: + 49 (0)511 566 1318
Jessica Blinne
Team Assistant
Tel.: + 49 (0)511 566 1425
The presentation slides and the video webcast for
Q3 2016 / 17 are available at the following link:
www.tuigroup.com/en-en/investors
Contact and publishing details
Published by
TUI AG
Karl-Wiechert-Allee 4
30625 Hanover, Germany
Phone: + 49 511 566-00
Fax: +49 511 566-1901
www.tuigroup.com
Concept and Design
3st kommunikation, Mainz
Photography
Cover Getty Images
The English and a German version of this
Quarterly Statement are available on the web:
www.tuigroup.com/en-en/investors
Published on 10 August 2017
Financial calendar
28 September 2017
Trading Update
13 December 2017
Annual Report 2016 / 17
13 February 2018
Annual General Meeting 2018
Quarterly Statement Q1 2017 / 18
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de/ukreg
Language: English
Company: TUI AG
Karl-Wiechert-Allee 4
30625 Hannover
Germany
Phone: +49 (0)511 566-1425
Fax: +49 (0)511 566-1096
E-mail: Investor.Relations@tui.com
Internet: www.tuigroup.com
ISIN: DE000TUAG000, DE000TUAG281, DE000TUAG299
WKN: TUAG00 , TUA G28, TUA G29
Listed: Regulated Market in Hanover; Regulated Unofficial Market in
Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate
Exchange; Open Market in Frankfurt; London
Category Code: QRT
TIDM: TUI
LEI Code: 529900SL2WSPV293B552
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 4515
End of Announcement EQS News Service
600173 10-Aug-2017
(END) Dow Jones Newswires
August 10, 2017 01:00 ET (05:00 GMT)
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