DJ DGAP-Regulatory: TUI AG: First Quater Results
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TUI AG / 1st Quarter Results
TUI AG: First Quater Results
14-Feb-2017 / 07:03 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group AG.
The issuer is solely responsible for the content of this announcement.
QUARTERLY STATEMENT
Q1 2016/17
TUI Group - financial highlights
Q1 2016 / Q1 2015 / 16 Var. % at
EUR million 17 restated Var. % constant
currency
Turnover 3,285.9 3,212.3 + 2.3 + 8.5
Underlying EBITA1
Northern Region - 20.2 - 35.6 + 43.3 + 27.5
Central Region - 52.4 - 27.0 - 94.1 - 94.1
Western Region - 47.7 - 27.7 - 72.2 - 72.2
Hotels & Resorts 49.0 25.2 + 94.4 + 93.7
Cruises 19.1 8.2 + + 132.9
132.9
Other Tourism - 0.3 - 10.2 + 97.1 n. a.
Tourism - 52.5 - 67.1 + 21.8 + 15.8
All other segments - 7.8 - 13.3 + 41.4 + 23.3
TUI Group - 60.3 - 80.4 + 25.0 + 17.0
Discontinued - 12.2 - 21.3 + 42.7 + 45.1
operations
Total - 72.5 - 101.7 + 28.7 + 22.9
EBITA² (continuing - 69.5 - 102.8 + 32.4
operations)
Underlying EBITDA +
(continuing 32.6 7.0 365.7
operations)
EBITDA (continuing 29.8 - 7.5 n. a.
operations)
Net loss for the
period (continuing - 81.6 - 138.1 + 40.9
operations)
Earnings per share
(continuing - 0.19 - 0.27 + 29.6
operations)EUR
Equity ratio (31 24.7 15.6 + 9.1
Dec)3%
Net capex and 138.2 159.3 - 13.2
investments
Net financial
position
(continuing - 1,518.4 - 1,875.6 + 19.0
operations, 31
Dec)
Net financial
position
(discontinued 290.6 - n. a.
operations, 31
Dec)
Employees (31 Dec) 56,766 64,594 - 12.1
Differences may occur due to rounding.
Due to the following changes to segmental reporting, the prior year's
reference figures were restated accordingly:
Hotelbeds Group was divested in September 2016. It had been carried as a
discontinued operation according to IFRS 5 since Q2 2015 / 16. The
Destination Services result had previously been carved out from the segment
and is now reported within the Other tourism segment. Moreover, due to the
planned disposal of Travelopia - a large part of the Specialist Group
segment - Crystal Ski and Thomson Lakes & Mountains were reclassified to
Northern Region. The remaining segment has been carried as a discontinued
operation since 30 September 2016.
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 measured at
equity and excluding the result from the measurement of interest hedges.
3 Equity divided by balance sheet total in %, variance is given in
percentage points.
Good operational performance delivered in Q1
* Turnover up 8.5 %1, with continued growth in our hotel, cruise and concept
brands plus the delivery of further merger synergies resulting in a
reduction in the seasonal underlying EBITA loss.
* Continuing to deliver our growth strategy, transforming TUI Group as the
world's leading integrated tourism business based on own hotel and cruise
brands.
* Agreement to sell Travelopia for an agreed enterprise value of GBP 325 m
(EUR 381 m)2 or 14.4 times 2015 / 16 underlying EBITA.
* Our scale and integrated business model give us a strong competitive
advantage, leaving us well placed to continue to deliver our growth
strategy, against what continues to be an uncertain geopolitical and
macroeconomic backdrop.
* Current trading remains in line with our expectations, with continued
growth in revenues and bookings in most Source Markets, further openings
planned in our hotel and concept brands and the launch of two cruise ships
this Summer.
* Based on our Q1 performance and current trading, we are pleased to
reiterate our balanced guidance of at least 10 % growth in underlying EBITA
in 2016 / 171.
Q1 results at a glance
EUR million Q1
Underlying EBITA Q1 2015 / 16 - 102
Restatements (including Hotelbeds and Travelopia 22
treated as discontinued operations)
Underlying EBITA Q1 2015 / 16 restated - 80
Underlying trading 29
Merger synergies 5
Year-on-year impact of aircraft financing 1
TUIfly sickness - 22
Underlying EBITA Q1 2016 / 17 excluding FX - 67
Foreign exchange translation 7
Underlying EBITA Q1 2016 / 17 - 60
* Source Markets - 8 % increase in turnover1 and 4 % increase in customers
driven by growth in the UK and Benelux as well as the acquisition of
Transat's tour operating activities in France. Further progress in
increasing direct and online distribution mix.
* As expected the Source Markets' result was impacted by higher than normal
levels of sickness in TUIfly in October 2016, as well as the phasing impact
of rebrand costs for Nordics and Belgium.
* Hotels & Resorts - strong performance by Riu, which delivered 86 %
occupancy in the quarter and 6 % increase in average revenue per bed. Hotel
openings in the quarter included Riu Reggae in Jamaica and TUI Blue in
Tenerife.
* Cruises - further growth in TUI Cruises following launch of Mein Schiff 5,
and increased earnings in Hapag Lloyd Cruises.
* See Segmental Performance section for further detail.
Sale of Travelopia
TUI Group announced on 13 February 2017 that agreement has been reached with
KKR to sell Travelopia for an agreed enterprise value of GBP 325 m (EUR 381
m)2 or 14.4 times 2015 / 16 underlying EBITA. This marks a further
significant step in TUI's strategic development. As outlined in TUI's full
year results presentation in December 2016, proceeds will be reinvested in
the transformation of TUI Group as the world's leading integrated tourism
business, focussed on own hotel and cruise brands, and to further strengthen
the balance sheet.
Travelopia was previously part of Specialist Group and comprises a portfolio
of more than 50 independently operated, sector leading specialist travel
brands. Due to their differing business models and strategic focus,
Travelopia has been operated independently from TUI's Tourism business in
order to maximise growth and value, and has been treated as discontinued
operations in the results of TUI since 30 September 2016.
1 At constant foreign exchange rates applied in the current and prior
period, and based on the current group structure.
2 Based on the GBP / EUR exchange rate of 1.1725 as at 10 February 2017
Current trading
Winter 2016/17
Current trading for Winter (low season for most of our Source Markets and a
proportion of our hotels) remains in line with our expectations. We are
continuing to grow our own hotel and cruise brands this Winter. In our own
hotels we have opened a new 454 room Riu Reggae in Jamaica, one new hotel
for TUI Blue in Tenerife and repositioned two hotels as TUI Blue in Austria
and Germany. We are also further expanding our unique concepts in third
party hotels, with several additions to the Sensimar and Family Life
portfolio this Winter, including Lanzarote, Thailand, Mauritius and Cape
Verde. In our cruise brands, with the first Winter operations of Mein Schiff
5 (TUI Cruises) and TUI Discovery (UK cruise), we continue to see strong
demand.
With 87 % of the programme sold, Source Markets revenue is 8 % ahead of
prior year and bookings are up 4 %.
* We are delivering further growth in bookings made via our Source Markets
for our core hotel and concept brands.
* UK revenues and bookings remain significantly ahead of prior year, in line
with our capacity plans. This includes growth in long haul and cruise, as
well as the Canaries, Spain, Cape Verde and Cyprus.
* Nordics bookings reflect lower demand for Turkey and Egypt. Excluding
these destinations, bookings are broadly in line with prior year, with
higher demand most notably for the Canaries, Spain and Greece. Volumes are
also impacted by the timing of the Christmas and Easter holidays.
* Germany revenues are ahead of prior year, with growth in the Canaries,
Spain and long haul offsetting lower demand for Turkey and Egypt. We are
pleased with booking performance in Germany since our last update, as we
continue to increase market share thanks to the increased range of holidays
and departure points on offer.
* In Benelux, revenues and bookings are ahead of prior year, driven by
growth in the Canaries, Spain and long haul.
As a result of the later timing of Easter this year, we expect approximately
EUR 30 m to EUR 35 m phasing impact on the Source Markets' and Hotels and
Resorts' Q2 result. This is a normal occurrence where the timing of Easter
shifts between quarters. We expect this impact to reverse in Q3.
Current trading Winter 2016/171
YoY variation Total revenue2 Total Total ASP2 Programme
% customers2 sold (%)
Northern 11 6 4 84
Region
UK 21 12 8 81
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Nordics - 6 - 4 - 2 93
Central Region 6 2 5 86
Germany 5 - 5 85
Western Region 6 4 2 93
Benelux 3 1 2 93
Total source 8 4 4 87
markets
1 These statistics are up to 5 February 2017 and are shown on a constant
currency basis
2 These statistics relate to all customers whether risk or non-risk
Summer 2017
At this relatively early stage of the booking cycle, Summer trading remains
in line with our expectations. The Source Markets' programme is 35 % sold,
in line with prior year, with revenues up 9 % and bookings up 4 %. As
anticipated, trading reflects a continued shift away from Turkey (which
accounted for around 8 % of Source Market Summer 2016 bookings) to
alternative destinations. Thanks to our strong Group and third party hotel
supply chain in Spain, Greece, Cape Verde and other destinations, we remain
well placed to deal with this. In the UK, where the highest proportion (43
%) of the programme is sold to date, we are continuing to deliver growth,
with revenues up 12 % and bookings up 3 %. This is driven by increased sales
of our core hotel and concept brands, with destinations in the Western
Mediterranean, Canaries, Cyprus, Cape Verde and the Caribbean proving to be
particularly popular. In addition, we will launch the cruise ship TUI
Discovery 2 for the UK market in May 2017. We will further grow our own
hotel brands, including new TUI Blue hotels in Croatia and Italy in our own
hotels this Summer, as well as further expansion of our unique tour operator
concepts in third party hotels including Sardinia, Italy, Croatia, Spain,
Greece and Bulgaria. We will also launch Mein Schiff 6 in June 2017 for TUI
Cruises. Sales for this and our other ships continue to progress well.
Outlook
We have delivered a good operational performance in Q1 and current trading
remains in line with our expectations. We are continuing to deliver our
growth strategy, transforming the business as the world's leading integrated
tourism business based on own hotel and cruise brands, with further openings
and launches planned for the coming year. We are pleased to have agreed the
sale of Travelopia, and we continue to progress our negotiations with Etihad
regarding the disposal of TUI fly and resulting creation of a new leisure
airline group for the German, Austrian and Swiss markets. Our scale and
integrated business model mean that we remain well placed to deliver our
growth strategy, against what continues to be an uncertain geopolitical and
macroeconomic backdrop. Based on our Q1 performance and current trading, we
are therefore pleased to reiterate our balanced guidance of at least 10 %
growth in underlying EBITA in 2016 / 17 *.
* At constant foreign exchange rates applied in the current and prior
period, and based on the current group structure.
Consolidated earnings
Turnover
EUR million Q1 2016 / 17 Q1 2015 / 16 Var. %
restated
Northern Region 1,201.7 1,269.3 - 5.3
Central Region 1,140.9 1,089.4 + 4.7
Western Region 549.4 486.9 + 12.8
Hotels & Resorts 141.2 132.4 + 6.6
Cruises 62.2 53.9 + 15.4
Other Tourism 150.6 148.0 + 1.8
Tourism 3,246.0 3,179.9 + 2.1
All other segments 39.9 32.4 + 23.1
TUI Group 3,285.9 3,212.3 + 2.3
TUI Group at constant 3,486.2 3,212.3 + 8.5
currency
Discontinued operations 252.4 506.1 - 50.1
Total 3,538.3 3,718.4 - 4.8
Underlying EBITA
EUR million Q1 2016 / 17 Q1 2015 / 16 Var. %
restated
Northern Region - 20.2 - 35.6 + 43.3
Central Region - 52.4 - 27.0 - 94.1
Western Region - 47.7 - 27.7 - 72.2
Hotels & Resorts 49.0 25.2 + 94.4
Cruises 19.1 8.2 + 132.9
Other Tourism - 0.3 - 10.2 + 97.1
Tourism - 52.5 - 67.1 + 21.8
All other segments - 7.8 - 13.3 + 41.4
TUI Group - 60.3 - 80.4 + 25.0
TUI Group at constant - 66.7 - 80.4 + 17.0
currency
Discontinued operations - 12.2 - 21.3 + 42.7
Total - 72.5 - 101.7 + 28.7
EBITA
EUR million Q1 2016 / 17 Q1 2015 / 16 Var. %
restated
Northern Region - 24.5 - 41.8 + 41.4
Central Region - 53.8 - 32.6 - 65.0
Western Region - 48.7 - 28.9 - 68.5
Hotels & Resorts 47.4 24.5 + 93.5
Cruises 19.2 8.2 + 134.1
Other Tourism - 0.9 - 12.0 + 92.5
Tourism - 61.3 - 82.6 + 25.8
All other segments - 8.2 - 20.2 + 59.4
TUI Group - 69.5 - 102.8 + 32.4
Discontinued operations - 15.6 - 39.3 + 60.3
Total - 85.1 - 142.1 + 40.1
Segmental performance
Northern Region
Q1 2016 / 17 Q1 2015 / 16 Var. %
restated
Turnoverin EUR million 1,201.7 1,269.3 - 5.3
Underlying EBITAin EUR - 20.2 - 35.6 + 43.3
million
Underlying EBITA at constant - 25.8 - 35.6 + 27.5
currency ratesin EUR million
Direct distribution mix1in %, 91 89 + 2
variance in % points
Online mix2in %, variance in 62 59 + 3
% points
Customersin '000 1,304 1,220 + 6.9
1 Share of sales via own channels (retail and online)
2 Share of online sales
* Northern Region continues to deliver high levels of direct and online
distribution: 91 % (up two percentage points) and 62 % (up three percentage
points) respectively.
* UK delivered a good performance including a strong end to Summer 2016,
with volumes up + 10 % driven by long haul, cruise (TUI Discovery launch)
and continued growth in sales of own hotels and concepts.
* Nordics continue to see a challenging environment impacted by lower demand
for Turkey and Egypt. In addition the result includes the phasing impact of
rebrand marketing costs.
* Following management changes in Nordics, we continue to focus on driving
operational efficiency improvements.
* The rebrand in Nordics is progressing to plan with good levels of unaided
TUI brand awareness.
Central Region
Q1 2016 / 17 Q1 2015 / 16 Var. %
restated
Turnoverin EUR million 1,140.9 1,089.4 + 4.7
Underlying EBITAin EUR - 52.4 - 27.0 - 94.1
million
Underlying EBITA at constant - 52.4 - 27.0 - 94.1
currency ratesin EUR million
Direct distribution mix1in %, 46 44 + 2
variance in % points
Online mix2in %, variance in 16 14 + 2
% points
Customersin '000 1,261 1,257 + 0.3
1 Share of sales via own channels (retail and online)
2 Share of online sales
* Central Region has delivered further improvement in both direct and online
distribution: 46 % (up two percentage points) and 16 % (up two percentage
points) respectively.
* Germany continues to build on its market share gains with an increased
range of holidays and departure airports on offer, and delivered an improved
trading performance in the quarter.
* However, as expected, the result was negatively impacted by high levels of
sickness at TUIfly in October, costing around EUR 22 m.
western Region
Q1 2016 / 17 Q1 2015 / 16 Var. %
Turnoverin EUR million 549.4 486.9 + 12.8
Underlying EBITAin EUR - 47.7 - 27.7 - 72.2
million
Underlying EBITA at constant - 47.7 - 27.7 - 72.2
currency ratesin EUR million
Direct distribution mix1in %, 72 70 + 2
variance in % points
Online mix2in %, variance in 55 52 + 3
% points
Customersin '000 926 877 + 5.6
1 Share of sales via own channels (retail and online)
2 Share of online sales
* Further growth in both direct and online distribution: 72 % (up two
percentage points) and 55 % (up three percentage points) respectively, aided
by the TUI rebrand in Belgium which is progressing to plan with good levels
of unaided TUI brand awareness.
* The result reflects the first time inclusion of Transat's seasonal EBITA
loss, as well as the phasing impact of rebrand costs in Belgium.
* In addition, the Netherlands result was impacted by night slot
restrictions in the quarter and increased claims for denied boarding
compensation.
* We are progressing the integration of Transat with our French tour
operator and we expect underlying EBITA in France to be broadly break even
this year.
Hotels & Resorts
Q1 2016 / 17 Q1 2015 / 16 Var. %
Total turnoverin EUR million 283.2 270.6 + 4.7
Turnoverin EUR million 141.2 132.4 + 6.6
Underlying EBITAin EUR 49.0 25.2 + 94.4
million
Underlying EBITA at constant 48.8 25.2 + 93.7
currency ratesin EUR million
Capacity hotels total1, 4in 7,791.3 7,732.9 + 0.8
'000
Riu 4,202.1 4,235.2 - 0.8
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