Tourexpi
It
was up 9 per cent on the previous year (Q3 2023: 5.3 billion euros). Underlying
Group EBIT rose significantly by 62 million euros to 232 million euros in the
third quarter. TUI Group CEO Sebastian Ebel: "For the eighth consecutive
time, we are reporting double-digit growth in underlying EBIT. In a market
environment that remains challenging, this also demonstrates the strength and
future viability of our business model. We are growing profitably and are
delivering what we have announced. We are a tourism group with strong companies
and brands in hotels and cruises. Our tour operators with their own travel
agencies provide access to 19 million customers. By expanding our product
portfolio, we are growing our customer base and want to open up new markets in
Asia and America. TUI is expanding its global presence and is therefore less
dependent on vacation periods in Northern, Western, and Central Europe. We are
a developer, investor and operator in the destinations, which makes us very
different from our competitors. The transformation is in full swing: We are
expanding our product portfolio and pushing ahead with digitalisation. An
important step in our transformation is the further strengthening of our
capital structure. With the proceeds from the successful placement of a
convertible bond with a total volume of 487 million euros, we have bought back
80 per cent of the existing convertible bond, thereby reducing TUI's interest
costs and extending its maturity profile. Moreover, we are further reducing the
undrawn KfW credit line. Overall, with this step we are reducing our annual
interest costs by around 18 million euros."
Development
of the segments in the third quarter of 2024
In
the Holiday Experiences segment with Hotels & Resorts, Cruises
and TUI Musement, all areas continued the very positive development of the
previous quarters. Hotels & Resorts achieved an underlying EBIT
of 131 million euros. This corresponds to an increase of 16 per cent
year-on-year (Q3 2023: 113 million euros). The number of overnight stays was 2
per cent higher than in the previous year (11.2 million), while hotel occupancy
stood at 80 per cent, up 1 percentage point on the previous year. The average
rate per day rose by 7 per cent year-on-year to 85 euros.
The Cruises
segment also reported another very good quarter. Underlying EBIT amounted
to 91 million euros (previous year: 64 million euros). This was due to higher
occupancy and higher rates, which underlines the strong demand for cruises.
This trend is continuing. Occupancy improved by 3 percentage points
year-on-year to 98 per cent. Average fares increased by 7 per cent to 235 euros
compared to Q3 FY2023.
TUI
Musement, our business offering Tours & Activities, increased underlying
EBIT to 19 million euros in the third quarter of the financial year 2024
(previous year: 13 million euros). The number of guest transfers in the
destinations rose by 7 per cent to 8.7 million and a total of 2.8 million
experiences were sold. This corresponds to an increase of 2 per cent compared
to the previous year (Q3 2023: 2.7 million). The segment benefited above all
from the continued growth of its own experience portfolio and established a
further strategic partnership with lastminute.com, including the brands
Bravofly, Rumbo, Volagratis and Weg.de.
In
the Markets & Airlines segment, the Group's tour operators,
underlying EBIT more than doubled year-on-year to 16 million euros. Central
Region (Germany, Austria, Switzerland, Poland) closed the quarter with a
positive underlying EBIT of 21 million euros. Northern Region (UK,
Ireland and the Nordics with Sweden, Norway, Finland and Denmark) also recorded
an increase. Underlying EBIT amounted to 14 million euros (previous year: -1
million euros). Western Region (Netherlands, France and Belgium)
reported an underlying EBIT of -19 million euros. This development was driven
by IT investments and the challenging long-haul business.
Positive
momentum and robust prices underline strong demand for Summer 2024; Winter
2024/25 also promising
For
the current travel summer, the Group continues to record a strong booking level
of +6 per cent compared to the previous year, while prices remain robust.
Average prices are 3 per cent higher compared to the previous year. For the
current summer, 88 per cent of capacity has already been sold. In the UK
market, bookings are currently up 5 per cent, while the number of TUI Germany
customers is 10 per cent higher than last summer. Bookings for Winter 2024/25
are currently still at an early stage, with the start of the season looking
promising. As usual, the UK market has been on sale longer than the other
markets, with 32 per cent of the programme already sold. Bookings are at the
same high level as last year. The other source markets also got off to a promising
start, with bookings well ahead compared to the previous year at a robust price
level.
Group
confirms guidance for the full financial year
The
guidance for the financial year 2024 is based on the strong increase in
underlying EBIT achieved to date, supported by a significant improvement in
Hotels & Resorts and Cruises and the return to our normal hedging policy in
Markets & Airlines. Against this background TUI, reconfirms the overall
guidance for the financial year 2024:
increase
in revenue of at least 10 per cent compared to previous year
increase
in underlying EBIT of at least 25 per cent compared to previous year
Image
Credit: © TUI Group
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