TUI Group expects double-digit earnings growth also for 2018

Α Decrease font Enlarge font
TUI Group expects double-digit earnings growth also for 2018Leading tour operator again delivers profitable 9M result

Hanover, 9 August 2018. “A good third quarter, very good nine-month results,” said Fritz Joussen, TUI Group CEO, at the presentation of the results for the completed quarter. TUI Group has delivered its second consecutive year of profitable 9M results. In the period from 1 October 2017 to 30 June 2018 and based on constant currency, underlying EBITA improved by 57.7 million euros year-on-year to 65.0 million euros. Turnover grew by 6.3 per cent to 11.830 billion euros. At constant currency turnover growth was 7.6 per cent. Fritz Joussen: “Our sector earns its profits in the fourth quarter. We have delivered a profitable operating result already after nine months for the second year in a row. For the full year, we expect to deliver double-digit earnings growth for the fourth consecutive time. We have considerably reduced our seasonality and thus our susceptibility to external challenges through the Group’s transformation focussing on hotels and cruises. TUI is in good health, we are flexible, deliver a strong operational performance and invest in our growth segments while maintaining our cost discipline. Early bookings and sustained growth at hotels and cruises limit the impact of the prolonged warm weather across Northern Europe. We reiterate our guidance for the full financial year and expect our underlying EBITA to grow by at least 10 per cent1.“

Overview 9M and Q3 2018 

In the first nine months of financial year 2018, TUI Group delivered turnover growth of 6.3 per cent to 11.830 billion euros (previous year 11.129 billion euros). On a constant currency basis turnover grew by 7.6 per cent. Underlying EBITA grew by 57.7 million euros to 65.0 million euros at constant currency. Including the currency effect underlying EBITA climbed by 27.5 million euros to 34.8 million euros. In the reporting period Q3 2018, turnover rose by 5.0 per cent to 5.016 billion euros (previous year 4.775 billion euros). On a constant currency basis and excluding the impact from the earlier timing of Easter, underlying EBITA totalled 227 million euros, up 2.4 per cent year-on-year (221.6 million euros). Including foreign exchange translation and the Easter impact, it declined by 12.7 per cent to 193.4 million euros.

Overview of the segments – Holiday Experiences

TUI Hotels & Resorts delivers good performance with high levels of occupancy

In Q3 2018, Hotels & Resorts delivered a strong overall performance. On a constant currency basis, the operating result rose to 86.0 million euros (previous year 77.7 million euros). Average occupancy in the segment improved considerably, while average rates remained broadly in line with prior year despite a negative impact of foreign currency translation.

  • Underlying EBITA: -3.9 per cent to 74.7 million euros (previous year 77.7 million euros)
  • Underlying EBITA at constant currency: +10.7 per cent to 86.0 million euros
  • Average revenues per bed: 59 euros (previous year 59 euros)
  • Average occupancy: 80 per cent (previous year 75 per cent)

Cruises: sustained growth roadmap – Additional capacity, higher rates, better earnings

Cruises continue to deliver a strong performance in 2018. All trends indicate that the growth of the cruise sector will continue in the next decade. TUI is prepared for that trend. It will expand its entire fleet by newbuilds scheduled for delivery in 2019, 2021, 2023, 2024 and 2026. The performance delivered by all three brands, TUI Cruises, Marella Cruises and Hapag-Lloyd Cruises, confirms the strong demand. The underlying result was substantially increased in the reporting period:

  • Underlying EBITA: +35.5 per cent to 90.9 million euros (previous year 67.1 million euros)
  • Underlying EBITA at constant currency: +36.1 per cent to 91.3 million euros
  • Average rate per passenger per day:
  • TUI Cruises 200 euros (previous year 183 euros)
  • Marella Cruises 138 GBP (previous year 126 GBP)
  • Hapag-Lloyd Cruises 571 euros (previous year 562 euros)

Average occupancy:

  • TUI Cruises 99 per cent (previous year 101 per cent)
  • Marella Cruises 100 per cent (previous year 100 per cent)
  • Hapag-Lloyd Cruises 76 per cent (previous year 73 per cent)

Destination Experiences 

TUI Destination Experiences (based in Palma de Mallorca) delivered a good operational performance in the third quarter. Q3 arrival guests grew by eight per cent. TUI continued to expand its business with services, excursions and experiences in the destinations. The acquisition of Destination Management announced in the period under review was completed in early August. With this, TUI will become one of the world’s leading providers of destination services and leisure activities as well as handling agent for its own and third-party cruise lines in the ports.

  • Underlying EBITA at constant currency: +16.4 per cent to 15.6 million euros
  • Underlying EBITA: +14.2 per cent to 15.3 million euros (previous year 13.4 million euros)

Markets: +4.4 per cent growth in customers, +4.7 per cent growth in turnover across all regions

In Q3 2018, Central Region (Germany, Austria, Switzerland, Poland), the Nordic countries,  Belgium and the Netherlands delivered a good operational performance. This was offset by margin effects in the UK due to the weaker pound sterling, a negative Easter effect of 19 million euros and a one-off effect of around 13 million euros as a result of airline disruption, driven by air traffic control strikes in France. Customer volumes increased by 4.4 per cent across all regions, with turnover up by 4.7 per cent to 4.41 billion euros (previous year 4.21 billion euros).

  • Underlying EBITA all regions: -54.5 per cent to 42.5 million euros (previous year 93.5 million euros)
  • Underlying EBITA all regions at constant currency: -56.4 per cent to 40.8 million euros

In Northern Region (UK & Ireland, Nordics, Canada, Russia), the Nordics continued to perform very well. The business continues to benefit from the use of the centrally introduced Group-owned Yield Management and CRM systems. In the UK, demand remained resilient in the quarter under review, however, margins continued to be impacted by the weaker pound sterling. Earnings in the UK were also impacted by airline disruption in Europe and the negative Easter effect.

  • Underlying EBITA Northern Region: -80.2 per cent to 16.0 million euros (previous year 81.0 million euros)
  • Underlying EBITA Northern Region at constant currency: -82.3 per cent to 14.3 million euros

Central Region (Germany, Austria, Switzerland, Poland) delivered five per cent growth in customer volumes in the period under review. Germany recorded a very good trading performance in the third quarter. TUI also continued to gain market share in Poland. Earnings by Central Region were also impacted by airline disruption and the Easter effect.

  • Underlying EBITA Central Region: +44.5 per cent to 35.4 million euros (previous year 24.5 million euros)

In Western Region (Belgium, the Netherlands, France), Belgium and the Netherlands performed well and also managed to deliver an increase in customer volumes. France leveraged additional synergies from the takeover of Transat, achieved cost reductions and streamlined costs processes and structures. Nevertheless, the competitive environment remains challenging in France. The flight cancellations in Europe and the Easter effect also impacted Western Region.

Underlying EBITA Western Region: +25.8 per cent to -8.9 million euros (previous year -12.0 million euros)

Good trading performance – hotels and cruises continuing to perform well

Summer 2018 bookings of markets ahead of prior year

Hotels and Cruises remain the Group’s growth pillars and continue to perform well. While Jandia Playa, the first Robinson Club ever to open its doors, will remain closed for comprehensive renovation and refurbishment work until the end of the year, the Group’s Turkish and North African hotels are again recording a considerable increase in booking levels. High demand is also seen for Greece. TUI hotels in Spain continue to deliver good booking levels, in particular against strong prior-year comparatives.

The cruises segment delivers higher rates and better earnings whilst at the same time significantly increasing capacity.

Trading performance for Summer 2018 (as at 29 July 2018) is good, bookings are ahead of the previous year. The high level of early bookings helps to offset the impact of the sustained good weather in our key markets this Summer. Spain remains the top destination. Turkey has caught up strongly and continues to record strong growth in bookings, along with North Africa and Greece. Destinations such as Cyprus, Croatia or Bulgaria also report good growth in bookings.

  • Source market turnover: +5 per cent1
  • Bookings: +4 per cent

About the TUI Group

TUI Group is the world’s number one integrated tourism group operating in around 180 destinations worldwide. The company is domiciled in Germany. The TUI Group’s shares are listed in the FTSE 100 index, the leading index of the London Stock Exchange and in the German open market. In financial year 2017, the TUI Group recorded turnover of €18.5bn and an operating result of €1.102bn. The Group employs 67,000 people in more than 100 countries. TUI offers its more than 20 million customers comprehensive services from a single source. It covers the entire tourism value chain under one roof. This comprises around 380 Group-owned hotels and resorts with premium brands such as RIU and Robinson and a fleet of cruise ships ranging from the MS Europa and MS Europa 2 luxury class vessels to the Mein Schiff fleet of TUI Cruises and the vessels of Marella Cruises in the UK. Furthermore, TUI features leading tour operator brands, 1,600 travel agencies in Europe and five European tour operator airlines with around 150 modern medium and long-haul aircraft. Global responsibility for sustainable economic, ecological and social activity is a key feature of our corporate culture. TUI Care Foundation supports the positive impacts of tourism. It initiates projects creating opportunities for the next generation and contributing to a positive development of the holiday destinations. 

Further information is available at www.tuigroup.com

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinations Greek travel marketGreek tourism statisticsGreek tourism report

 

Tornos
  1. 26/02 20:20

    Renovated Omonia Square close to opening in central Athens

  2. 26/02 19:35

    11 threatened Greek grapevine varieties to be saved

  3. 26/02 19:29

    Minister interview: France will support Greece and Cyprus against Turkey

  4. 26/02 18:30

    Latest Greek high court ruling in favor of Hellas Gold mining investment

  5. 26/02 18:17

    Prime Minister to migrants not qualifying for asylum: Don't come to Greece

  6. 26/02 17:45

    Next EUMed7 conference be organized in Athens during May 2020

  7. 26/02 16:16

    First case of COVID19 recorded in Northern Greece remains in good health

  8. 26/02 14:44

    Campaign against overworking of donkeys on Greek island of Santorini

  9. 26/02 11:59

    Popular Greek comic actor Kostas Voutsas passes at the age of 88

  10. 26/02 00:43

    Greek government signs cooperation deal with UEFA and FIFA in Athens

  11. 26/02 00:36

    Greek luxury travel firm launches contest on International Women’s Day

  12. 26/02 00:17

    Rich program of Carnival events all over Athens

  13. 25/02 20:25

    International buyers boost home rates in northern Greek city of Thessaloniki

  14. 25/02 20:12

    Cosco-controlled Greek port of Piraeus announces higher turnover and profits

  15. 25/02 20:07

    General strike on northern Aegean Region islands in Greece on Wednesday

  16. 25/02 20:03

    Survey: Bread prices in Greece second lowest in eurozone

  17. 25/02 20:00

    Blood sample of man hospitalised in Greek port of Patras negative for coronavirus

  18. 25/02 19:56

    InvestCyprus creates specialized unit to help attain 2030 tourist targets

  19. 25/02 19:56

    Ambassador in Athens: Qatar lives and breathes for 2022

  20. 25/02 19:05

    Bank of Greece head: Seven priorities for sustained economic growth

  21. 25/02 19:03

    LPC chief: Greece top in EU for recycling industrial lubricant oils

  22. 25/02 18:05

    Greek minority in Albania against government plan to seize properties in Himara

  23. 25/02 17:54

    Eurogroup president to take part in next month's 5th Delphi forum in Greece

  24. 25/02 16:55

    1,000 guests at Tenerife hotel quarantined after coronavirus diagnosis

  25. 25/02 16:13

    Greek government to pass act on measures to contain potential spread of coronavirus

  26. 25/02 15:36

    Three Greek firms awarded projects for construction of closed refugee camps

  27. 25/02 14:40

    Good news for Greek tourism: Warm weather may kill the new coronavirus

  28. 25/02 13:19

    Tyrini, Cheesfare week kicks off in Greece

  29. 25/02 13:17

    Greek Finance Minister to meet with hotel sector representatives

  30. 25/02 11:58

    National Museum of Contemporary Art opens in Athens on Friday

  31. 25/02 01:35

    Venice Carnival canceled and towns locked down after COVID-19 outbreak

  32. 25/02 01:30

    Greek Health Minister: All measures have been taken to protect public health

  33. 25/02 01:11

    Greek Health Ministry issues basic tips against COVID-19 as a precaution

  34. 25/02 01:03

    Greek tennis champion Tsitsipas wins second open title in Provence

  35. 25/02 00:44

    Aegean: No plan to cancel flights from Greece to Italy due to virus

  36. 25/02 00:31

    Tokyo 2020 Olympic flame to pass by historic landmarks across Greece

  37. 25/02 00:03

    Passenger traffic in Greek airports grows 5.4% in January 2020

  38. 24/02 22:41

    Compromise between an ancient necropolis and an ultra modern Cultural Center reached in Athens

  39. 24/02 21:47

    TrainOSE increases passenger capacity in view of Patras carnival in Greece

  40. 24/02 20:27

    Acclaimed Greek poet Kiki Dimoula passes away at 89

  41. 24/02 19:58

    Financial crisis drove Greece’s rents down but rebound makes them soar

  42. 24/02 17:19

    IFT 2020: Greece remains a top tourist destination for Serbs

  43. 23/02 19:21

    US students at Lafayette College to resume Ancient Greek program in Athens

  44. 23/02 17:03

    Greek Foreign Ministry voices support to Turkey and Iran over earthquake

  45. 23/02 16:41

    Greek Health Ministry to hold meeting on coronavirus precautions

  46. 23/02 16:35

    Region of Attica Governor wants to clear Athens from poster pollution

  47. 23/02 16:22

    Athens Science Festival to take place in Technopolis between April 1-5

  48. 23/02 16:17

    IATA: Coronavirus may slash $29 billion from Airlines’ revenue globally

  49. 23/02 16:04

    Greeks from “Diamond Princess” cruiseship test negative for coronavirus

  50. 23/02 15:59

    Initiative to rid central Monastiraki Square in Athens of plastics

  51. 23/02 15:52

    Washington Post: Greece should be the keeper of the Elgin Marbles

  52. 23/02 13:43

    Whistleblower in Novartis case to testify before Greek Parliament

  53. 23/02 11:30

    Minister: Building migration centers on Greek islets 'not a government plan'

  54. 23/02 00:51

    Yachting report: Flisvos Marina in Athens among the best in the world (video)

  55. 22/02 15:46

    Greek FM discusses renewable energy with Danish counterpart Kofod

  56. 22/02 15:29

    Promotion of renewable energy sources for electricity production in Greece

  57. 22/02 15:25

    Seven bidders for Thessaloniki port pier extension project in northern Greece

  58. 22/02 15:20

    Infographic: Europe’s most passenger-friendly train stations

  59. 22/02 14:52

    DEPA infrastructure privatization attracts 9 international investors in Greece

  60. 22/02 14:48

    Greek climate activist spreads message by cycling around the globe

  61. 22/02 14:32

    Greek champion wins gold at 2020 World Cup Gymnastics in Melbourne

  62. 22/02 13:43

    Grrek PM on EU summit: Some insisted we should do more with fewer resources

  63. 22/02 12:00

    ReGeneration Greece: Five years of supporting young people

  64. 21/02 19:49

    Greek Orthodox Archdiocese in United Nations event on homelessness

  65. 21/02 17:46

    Greek Foreign Minister Dendias visits the Danish capital Copenhagen

  66. 21/02 17:35

    Infographic: China is the planet's manufacturing superpower

  67. 21/02 17:26

    Greek Shipping Minister meets with EU Commissioner for Transport

  68. 21/02 17:06

    European court gives Greece green light for migrant detention centers

  69. 21/02 16:58

    Greek export performance achieves new historical record during 2019

  70. 21/02 16:24

    Greece's comics festival, Comicdom Con Athens, launched on April 10

  71. 21/02 16:18

    SEV proposes measures to reverse brain drain in Greece

  72. 21/02 16:12

    Bible of digital transformation to be presented in Greece until end of March

  73. 21/02 16:01

    Victoria Beckham’s Vogue Greece cover draws global media attention

  74. 21/02 15:51

    Total value of Greek-Chinese trade soars to record €4.5 billion

  75. 21/02 15:48

    Greece plays critical role in European Union ecology app program

  76. 21/02 15:44

    ECB net interest income on SMP holdings of Greek bonds at €94 million

  77. 21/02 12:37

    Connecticut University to create museum of ancient Greek city-state of Sparta

  78. 21/02 10:23

    Greek PM from Brussels: We cannot do more with less

  79. 21/02 02:16

    Carnival season peaks in Greece

  80. 21/02 02:09

    First smart-hotel to open in northern Greek city of Thessaloniki

  81. 21/02 01:56

    Foreign Ministry: Greece's foreign policy always serves international law

  82. 21/02 01:51

    St. Petersburg College cooperates with Greece’s University of the Aegean

  83. 21/02 01:35

    Condé Nast Traveler: Ftelia in Mykonos named Best Beach Club in the World for 2020

  84. 21/02 01:09

    Greek-American Chamber of Commerce hails exemption of local products from tariffs

  85. 20/02 23:00

    Hellenic Society of Constantinople to organize Annual Gala in LA

  86. 20/02 22:28

    Greek PM: More funding needed for climate change and border control

  87. 20/02 21:45

    Parliamentary Budget Office: Greek economy on positive track in Q4 2019

  88. 20/02 19:21

    Reconstruction of Omonia Square concluded in Athens by next week

  89. 20/02 17:16

    Affluent Chinese will bring Greece €1 billion through Golden Visas

  90. 20/02 15:59

    Athens Museum shows Ancient Greek technology was way ahead of its time

  91. 20/02 13:49

    Innovative Greek application protects consumers from harmful substances

  92. 20/02 10:40

    Reuters: Greece says Marbles' return not linked to Brexit negotiations

  93. 20/02 00:48

    Sounds Greek to Me: Celebrate Patras Carnival at the Athens Airport

  94. 20/02 00:39

    Celine Dion to give a concert at the Olympic Stadium of Athens on July 31

  95. 20/02 00:35

    International Greek Language Day marked at Socrates Academy in US

  96. 20/02 00:30

    Ambassador in Athens: US committed to Greece’s security and prosperity

  97. 20/02 00:00

    OTE's chief: 'Performance in the last quarter crowned a very solid 2019'

  98. 19/02 23:46

    Minister: Government to proceed with closed type hosting facilities

  99. 19/02 23:13

    Commissioner Schinas: EC will stand by Greece's regional authorities

  100. 19/02 21:06

    AP: Greece’s first official mosque will commence services this Spring