TUI Group delivers good start to 2015/16 financial year
- Underlying EBITA up by 7.2 per cent1 in Q1 2015/16
- Turnover up by 5.4 per cent in first quarter
- Earnings guidance for full year reiterated: At least 10 per cent1 growth in underlying EBITA
- Northern Region, RIU and TUI Cruises deliver particularly strong operating performance
- 10 million euros of further merger-related synergies delivered
- Disposal process of Hotelbeds Group initiated
- Joussen: “Good start to new financial year, integrated business model demonstrates resilience and flexibility in facing the impact of external events”
TUI has recorded a decline in demand for Turkey, with Summer 2016 bookings to that destination currently down by around 40 percent. However, the integrated business model and own hotel content have enabled TUI to act quickly to respond to these changes and offer customers alternative destinations. TUI’s own hotels in destinations outside Turkey such as Spain and in particular the Canaries are benefitting from this shift in demand. “Based on current trading and due to the resilience of our integrated business model, we remain convinced that we will be able to deliver the announced underlying EBITA growth of at least 10 percent1 in the full financial year 2015/16,” said Joussen.
Upon the close of today’s Annual General Meeting, Fritz Joussen will become sole Group CEO, as agreed at the time of the merger between TUI AG and TUI Travel. Peter Long, who has been Joint CEO this far, will stand for election as a Supervisory Board member at the Annual General Meeting.
Tourism: Strong performance in Northern Region, RIU and TUI Cruises
Since the second half of the last financial year, Tourism has comprised all Source Markets, the expanded Hotels & Resorts unit, and Cruises. The seasonal loss for the Source Markets totalled 82 million euros (previous year: -78 million euros). On a constant currency basis, the seasonal loss improved to -77 million euros year-on-year. Northern Region (UK & Ireland, Nordics, Canada, Russia) benefited from strong end of Summer trading in Source Market UK & Ireland and improved margins in the Nordics. Both Source Markets improved their performance year-on-year. Central Region (Germany, Austria, Switzerland, Poland), by contrast, recorded a decline in earnings year-on-year, driven by the development in Source Market Germany, which continued to be adversely impacted by on-going challenging trading conditions and the decline in demand for Tunisia and Egypt. The operating result of Western Region (Belgium, Netherlands, France) was impacted by the additional marketing costs for the TUI rebranding in the Netherlands.
Hotels & Resorts: RIU increases occupancy / Average rate per bed +12.7%
In Q1 2015/16, Hotels & Resorts recorded underlying EBITA of 25 million euros (previous year 29 million euros, including the gain on disposal from the sale of a hotel), i.e. a very strong performance. On a constant currency basis, the operating result totalled 23 million euros. However, the result for the prior year reference quarter had included a gain on disposal from the sale of a RIU Group hotel worth 16 million euros. Excluding this non-repeat prior year one-off income, Hotels & Resorts delivered a strong operating performance. RIU, in particular, achieved an increase in occupancy of its own hotels of 2.3 percentage points. Average rate per bed even climbed by 12.7 per cent. By contrast, Robinson saw its results impacted by various factors including higher marketing costs and weaker demand for the clubs in Turkey.
Cruises with positive operating result
TUI Group’s Cruise activities generated a positive operating result in the first quarter. Underlying EBITA amounted to 8 million euros (previous year 2 million euros). TUI Cruises achieved an improvement in its operating performance due to the successful expansion of its fleet following the launch of Mein Schiff 4 in June 2015. At 101 per cent, occupancy of the currently four cruise ships of TUI Cruises remained high, while the average rate per passenger per day declined slightly as expected to 146 euros, reflecting the expansion of the fleet and the increased offering. In the current financial year, TUI Cruises will continue its growth course in the premium cruise market segment. Mein Schiff 5 will be launched in July of this year. Cruise ships Mein Schiff 6 to Mein Schiff 8 will be launched from 2017 to 2019
At 70 per cent, occupancy of the luxury and expedition cruise ships of Hapag-Lloyd Cruises matched the prior year’s level, while the average rate per passenger per day climbed by 3 per cent to 478 euros in the period under review.
Further synergies delivered – disposal process Hotelbeds Group initiated
In the period under review, further 10 million euros in merger synergies were delivered, thereof five million from further savings at Corporate Center. The other half of the amount was delivered by TUI Destination Services, carved out from Hotelbeds Group and integrated into the Group’s Tourism activities.
Hotelbeds Group, global bedbank market leader, is managed as a stand-alone entity, outside TUI Group’s core Tourism business. In Q1 2015/16, Hotelbeds Group increased its underlying EBITA to 4 million euros excluding the share contributed by Destination Services (previous year 2 million euros). Total transaction volume (TTV) rose by 17 per cent. Turnover increased by 27.4 per cent to 217.4 million euros (previous year 170.7 million euros). With the support of the mandated banks TUI has initiated the announced disposal process for Hotelbeds and is within its own set scheme.
RELATED TOPICS: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations , Greek travel market, Greek tourism statistics, Greek tourism report
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