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TUI Group: Strong performance, good year expected / Guidance reiterated: At least 10 per cent growth in underlying EBITA

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Q3 2016/17: Turnover up 16.4 per cent1
Underlying EBITA up 18.7 per cent2 in the period under review
Positive underlying EBITA delivered in the 9M period for the first time
Good trading performance – Summer 2017 continues to trade in line with expectations
Full-year turnover guidance: now more than 3 per cent growth expected
Clear alignment: TUI now pure play tourism group – Sale of Travelopia and disposal of stake in Hapag-Lloyd AG successfully completed
CEO Fritz Joussen: “Transformation is successful, seasonal swing has been reduced. We expect a strong year“.
“2016/17 will be another good year for TUI Group. We are delivering growth and reiterating our guidance. We expect turnover growth of more than three per cent, our underlying operating result is expected to grow by at least ten per cent1 in the full year“, said TUI Group CEO Fritz Joussen at the presentation of the Q3 2016/17 results. TUI delivered an increase in underlying EBITA of 18.7 per cent2 and turnover growth of 16.4 per cent1 in the period under review. Moreover, the Group’s cumulative 9M operating result (underlying EBITA) was positive for the first time. Joussen: “This good performance reflects our successful transformation and focus on own hotel and cruise brands. We have significantly reduced the seasonal swing of our business. For the first time, we have delivered a positive operating result for the first nine months of a financial year. TUI is in excellent shape about to fulfil its objectives. That is good for our shareholders and our Group’s 67,000 employees. Our customers benefit from the market presence of our tour operators in many European source markets, the enormous diversity of our offering in more than 100 countries and from quality standards set by our Group brands such as RIU, Robinson, TUI Blue, TUI Cruises and Hapag-Lloyd Cruises. TUI is on track, both strategically and operationally“.
Overview Q3 2016/17
In the period under review, TUI Group recorded turnover growth of 16.41 per cent to 4.94 billion euros (previous year 4.24 billion euros). Including foreign exchange translation, turnover rose by 12.6 per cent to 4.78 billion euros. Underlying EBITA climbed 18.7 per cent2 to 191.0 million euros (previous year 160.9 million euros). Including foreign exchange translation and the timing impact of Easter, it rose by 37.7 per cent to 221.6 million euros.
Clear alignment: TUI is pure play tourism group – One brand – Digital
In Q3 2016/17, TUI Group continued its transformation as a fully integrated tourism group. Joussen: “We successfully completed the sale of our Travelopia specialist tour operator business in Q3 and the remaining stake in Hapag-Lloyd AG in July 2017. This completes the transformation of the former diversified conglomerate to tourism group TUI. The rebranding has also been very successful in all countries and has strengthened TUI both at the global and local levels. The UK will be the last market to roll out the rebranding in autumn 2017. We will then consistently operate under the TUI brand in all Source Markets. Our clear focus on the high-growth and high-margin Hotels & Resorts and Cruises segments has proven to be the right strategy and has been very successful. The digitalisation of our businesses and services is progressing well. We are embracing new technologies such as Blockchain, and have already started to apply it in our hotel businesses. Moreover, our modern CRM systems enable us to gain a single view of the customer.”
Geopolitical challenges: Balanced portfolio of more than 100 destinations ensures TUI’s resilience
TUI was and remains prepared for shifts in demand for individual destinations. Lower demand for Turkey was already taken into account when planning the summer 2017 programme, as demand for Turkey had declined as early as 2016. This factor was fully offset by additional offerings to alternative destinations. However, late bookings reflect a renewed popularity of Turkey and North African destinations among customers. TUI benefits from its strong presence in more than 100 countries in the world. In Q3, the Group again reported very strong demand for holidays to Spain, Greece and Italy, for long-haul travel and for cruises.
For the rest of the results, click here.

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