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TUI AG (FRA:DE000TUA) TUI AG: Q1 2024 Interim Report 1 October 2023 – 31 December 2023

Directive transparence : information réglementée

13/02/2024 07:00

TUI AG (TUI)
TUI AG: Q1 2024 Interim Report 1 October 2023 – 31 December 2023

13-Feb-2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.


TUI Group
Q1 2024 Interim Report
1 October 2023 – 31 December 2023

 

Content

Interim Management Report

Summary

Report on changes in expected development

Consolidated earnings

Segmental performance

Financial position and net assets

Comments on the consolidated income statement

Alternative performance measures

Other segment indicators

Corporate Governance

Risk and Opportunity Report

Related parties

Unaudited condensed consolidated Interim Financial Statements

Notes

General

Accounting principles

Group of consolidated companies

Acquisitions – Divestments

Notes to the unaudited condensed consolidated Income Statement

Notes to the unaudited condensed consolidated Statement of Financial Position

Responsibility Statement

Review Report

Cautionary statement regarding forward-looking statements

Financial calendar

Contacts

 

 

 

 

 

 

 

 

 

 

 

This Interim Financial Report of TUI Group was prepared for the reporting period from 1 October 2023 to 31 December 2023.

 

TUI AG

Karl-Wiechert-Allee 23

30625 Hannover

 

Interim Management Report

Summary

Record Q1 performance in 2024, delivering highest ever revenues of €4.3bn and positive Q1 underlying EBIT of €6.0m for the first time1. As a result and based on current booking trends, we reconfirm our FY 2024 guidance to increase our underlying EBIT by at least 25%.

 

  • In Q1 2024 we recorded a record Group revenue of €4.3bn1, which was up strongly across all our segments increasing by a total of 15% against the prior year (Q1 2023: €3.8bn). This was driven by higher demand at improved prices and rates. 
  • We achieved a positive Q1 Group underlying EBIT of €6.0m for the first time1. This was an improvement of €159.0m (Q1 2023: €-153.0m ), highlighting the significant progress we have made across the business and underlining the strategic development of the Group.
    • Hotels & Resorts improved on an already strong operational performance in the prior year supported by higher occupancies and increased rates.
    • In Cruises, the strong trading environment coupled with the quality of product we offer, drove an increase in occupancy at higher rates, with all three of our cruise brands contributing to the upside.
    • With the further expansion of our own differentiated product offering and continued development of the digital platform in TUI Musement, the segment recorded higher year-on-year results for the period. 
    • Our Markets & Airlines delivered a significantly improved underlying EBIT with Central Region posting a positive first quarter result for the first time1. The segment benefitted from stronger demand at increased prices. In addition, the ability to return to our normal hedging lines provided, as expected, significant upside to the results across the markets.  
  • During the quarter we welcomed 3.5m customers, 6% more than in the prior year. Average load factor of 86% for Q1 2024 was 1%pt higher than in the prior year.
  • We saw a reduction in our net debt year-on-year by €1.3bn to €4.0bn at 31 December 2023 from €5.3bn in the prior year. This improvement was driven by net proceeds (following repayment of the final WSF obligations) from our capital increase in April 2023 and a positive cash flow from operations and lower net investments.
  • We saw a further upgrade in our credit rating to B+ with positive outlook by S&P and we have a clear pathway to a rating target of BB/Ba territory.
  • In Markets & Airlines the positive booking2 momentum continues for both the Winter 2023/24 and Summer 2024 season on an expanded programme. Average selling price (ASP) continues to hold up well, highlighting the strong demand for our products and the consumers continued willingness to prioritise spend on travel and holidays. Our hedging levels for the coming Summer and Winter seasons are in line with our normal hedging policy.
  • Winter 2023/24 bookings continue to be well ahead at +8% against the prior season with ASP higher across our key markets and up +4% overall. To date 87% of the Winter season has been sold which is in line with the prior Winter season. Bookings for Summer 2024 continue to be promising with the usual 32% of the programme sold at the point in time. Bookings are ahead across all our markets and overall, at +8% supported by stronger ASP at +4% against Summer 2023.
  • Holiday Experiences trading3 remains well on track to deliver in line with expectations, with bookings in all segments ahead of prior year.

 

 

FY 2024 guidance4

Our focus is on operational excellence and execution. Our strategic roadmap, the strong operational recovery and the measures taken to strengthen our balance sheet, lay the foundations for future profitable growth. Our guidance for FY 2024 is provided within the framework of the current macroeconomic as well as geopolitical uncertainties especially in the Middle East. It is based on the strong performance in Q1 and the current positive booking momentum across both seasons, as well as a return to a normal hedging policy. Against this background, we reconfirm our guidance for FY 2024 published in our Annual Report 2023:

  • We expect revenue to increase by at least 10% year-on-year
  • We expect underlying EBIT to increase by at least 25% year-on-year

 

Mid-Term Ambitions

We have a clear strategy to accelerate profitable growth by increasing the customer lifetime value, creating a business which is more agile, more cost-efficient and achieving a higher speed to market with the aim to create additional shareholder value. Our mid-term ambitions are as follows:

  • Generate underlying EBIT growth of c. 7-10% CAGR
  • Target net leverage5 strongly below 1.0x
  • Return to a credit rating territory in line with our pre-pandemic rating BB/Ba (S&P/Moody’s)

 

1 Since the merger of TUI AG and TUI Travel PLC in 2014

2 Bookings up to 4 February 2024 relate to all customers whether risk or non-risk and includes amendments and voucher re-bookings

3 FY 2024 trading data (excluding Blue Diamond in Hotels & Resorts) as of 4 February 2024 compared to 2023 trading data

4 Based on constant currency and within the framework of the macroeconomic and geopolitical uncertainties currently known, including

  developments in the Middle East

5 Net leverage ratio defined as net debt (Financial liabilities plus lease liabilities less cash & cash equivalents less other current financial assets)

  divided by underlying EBITDA

 

Sustainability (ESG) as an opportunity1

  • As an industry leader, we want to set the standard for sustainability in the market. We believe that sustainable transformation should not be viewed solely as a cost factor, but that sustainability pays off – for society, for the environment, and for economic development.
  • We continue to make progress to reduce relative emissions across our business and to achieve our targets. One focus in TUI’s sustainability journey is the measurement of its IT footprint. In January 2024, we announced the measures we are taking to mitigate our tech carbon footprint across our technology infrastructure. We have clear targets to reduce emissions throughout the business from our data centres and the cloud to the environmental footprint of mobiles or electronic screens. To ensure the approach is in line with industry best practices and international standards, an external agency has been commissioned to create a robust methodology. The work we are doing in this area was recognised in January when we were awarded the European SustainableIT Impact Award 2024 as the category winner of ‘Governance’.

 

1 Further details on our Sustainability Agenda are published in our Annual Report 2023 and also on our website under

  www.tuigroup.com/en-en/sustainability (not subject of an auditor’s review)

 

TUI Group - financial highlights

 

 

 

 

 

 

 

 

 

 

€ million

 

 

Q1 2024

 

Q1 2023
adjusted

 

Var. %

 

Var. % at constant currency

Revenue

 

 

4,302.5

 

3,750.5

 

+ 14.7

 

+ 14.8

Underlying EBIT1

 

 

 

 

 

 

 

 

 

Hotels & Resorts

 

 

90.7

 

71.6

 

+ 26.6

 

+ 31.7

Cruises

 

 

34.5

 

0.2

 

n. a.

 

n. a.

TUI Musement

 

 

- 10.7

 

- 13.5

 

+ 20.9

 

+ 34.1

Holiday Experiences

 

 

114.5

 

58.3

 

+ 96.3

 

+ 105.5

Northern Region

 

 

- 50.4

 

- 122.0

 

+ 58.6

 

+ 59.8

Central Region

 

 

1.3

 

- 29.0

 

n. a.

 

n. a.

Western Region

 

 

- 46.6

 

- 43.7

 

- 6.6

 

- 5.1

Markets & Airlines

 

 

- 95.7

 

- 194.6

 

+ 50.8

 

+ 52.2

All other segments

 

 

- 12.8

 

- 16.7

 

+ 23.1

 

+ 22.5

Underlying EBIT1 TUI Group

 

 

6.0

 

- 153.0

 

n. a.

 

n. a.

TUI Group
(at constant currency)

 

 

14.0

 

- 153.0

 

n. a.

 

 

EBIT1

 

 

0.2

 

- 158.7

 

n. a.

 

 

Underlying EBITDA

 

 

208.5

 

58.3

 

+ 258.0

 

 

EBITDA2

 

 

208.0

 

58.0

 

+ 258.5

 

 

Group loss

 

 

- 83.5

 

- 231.8

 

+ 64.0

 

 

Earnings per share3

 

- 0.24

 

- 0.89

 

+ 73.0

 

 

Net capex and investment

 

 

43.9

 

149.0

 

- 70.6

 

 

Equity ratio (31 Mar)4

%

 

9.0

 

0.7

 

+ 8.3

 

 

Net debt (31 Dec)

 

 

3,983.3

 

5,259.9

 

- 24.3

 

 

Employee (31 Dec)

 

 

52,661

 

49,979

 

+ 5.4

 

 

 

Due to rounding, some of the figures may not add up precisely to the stated totals, and percentages may not precisely reflect the absolute figures. All change figures refer to the previous year, unless otherwise stated.

1 We define the EBIT in underlying EBIT as earnings before interest, income taxes and result of the measurement of the Group’s interest hedges.  For further details please see page 17.

2 EBITDA is defined as earnings before interest, income taxes, goodwill impairment and amortisation and write-ups of other intangible assets, depreciation and write-ups of property, plant and equipment, investments and current assets.

3 Earnings per share were adjusted for the impact of the 10-for-1 reverse stock split in February 2023 as well as the impact of the subscription rights issued in the capital increase on 24 April 2023.

4 Equity divided by balance sheet total in %, variance is given in percentage points.

The present Q1 Interim Financial Report 2024 is based on TUI Group’s reporting structure set out in the Consolidated Financial Statements of TUI AG as at 30 September 2023. See TUI Group Annual Report 2023 from page 28.

Due to the re-segmentation of Future Markets from All other segments to Hotels & Resorts, TUI Musement and Central Region as at 31 March 2023 previous year’s figures have been adjusted.

 

 

Trading update Markets & Airlines1 - Positive booking momentum continues for both Winter and Summer seasons with higher ASP highlighting the strong consumer demand for our travel products. Volumes expected to recover to pre-pandemic levels

 

Winter 2023/24 vs. Winter 2022/23

 

 

 

Variation in %

 

 

Bookings

 

+ 8

ASP

 

+ 4

 

  • 4.4m bookings have been taken to date, an increase of +8% against the prior Winter season with 1.4m bookings added since our last trading update published on 6 December 2023 on the FY 2023 full-year announcement. As a result, 87% of the overall season has been sold which is in line with prior season.
  • ASP is at +4% versus Winter 2022/23 highlighting the resilience of demand for our travel products.
  • Short- and medium haul destinations continue to drive bookings, with popular destinations once again proving to be the Canaries, Egypt and Cape Verde.
  • Booking across all markets and in particular in our key markets, continue to be well ahead of prior year. With the majority of the Winter season sold across the key markets, bookings in UK are up +10% against Winter 2022/23 with 84% of booking already taken. In Germany, following a strong start to the season, volumes continue to be well ahead +8% against the prior season with 87% of the season sold.

 

Summer 2024 vs. Summer 2023

 

 

 

Variation in %

 

 

Bookings

 

+ 8

ASP

 

+ 4

 

 

  • Current indications for Summer 20242 continue to be promising, with 32% of the programme sold, which is essentially in line with the prior year.
  • 5.0m bookings have been taken to date, up +8% on Summer 2023 with all markets ahead of prior year.
  • Summer 2024 ASP is +4% ahead, maintaining the level reported in December 2023.
  • We have seen stronger demand year-on-year across all our key medium- and short-haul destinations with Spain, Greece and Turkey again proving to be most popular for the summer season.
  • In UK, which has been on sale for the longest period, bookings are up +3%, with 41% of the programme sold. In Germany, 32% of the season has been sold. Here, the season has started strongly, with bookings +15% against Summer 2023.
  • We continue to monitor developments both in the Middle East and around the Arabian Peninsula. We will retain the option to flexibly adjust capacity from the eastern to western Mediterranean should there be a further escalation of the conflict in this region which has a significant and prolonged effect on customer demand.

 

1 Bookings up to 4 February 2024 relate to all customers whether risk or non-risk and include amendments and voucher re-bookings.

2 Depending on the source market, Summer season starts in April or May and ends in September, October or November.

 

 

 

Trading update Holiday Experiences1 – Trading remains well on track to deliver in line with expectations

 

Trading

 

Q2 2024

 

H2 2024

 

 

 

 

 

Variation in % versus

 

 

 

 

 

 

 

 

 

Hotels & Resorts

 

 

 

 

Available bed nights

 

+ 7

 

+ 1

Occupancy

 

-  1

 

+ 1

Average daily rate

 

+ 13

 

+ 12

Cruises

 

 

 

 

Available passenger cruise days

 

0

 

+ 9

Occupancy

 

+ 5

 

+ 13

Average daily rate

 

+ 18

 

-  2

TUI Musement

 

 

 

 

Experiences sold

 

+ 12

 

+ low-double digit

Transfers

 

in line with operations and capacity operated by Markets & Airlines

 

 

  • Hotels & Resorts – Number of available bed nights2 are higher, with Q2 up +7% against the prior year driven by an earlier start to the season. H2 is 1% ahead, in particular for Riu. Booked occupancy3 to date is slightly below prior year for Q2 and ahead for H2 at +1%, underlining the strong demand for our hotel portfolio already witnessed last year. Average daily rates4 are up strongly across our key brands, with overall rates up +13% for Q2 and up +12% for H2. We expect key destinations to be the Canaries, Mexico, the Caribbean and Cape Verde in Q2 with Spain, Greece and Turkey anticipated to be popular for the summer half-year.
  • Cruises – Our three brands are set to operate a full fleet of sixteen ships, with Mein Schiff 7 complimenting the TUI Cruises fleet for the Summer season. As a result, available passenger cruise days5 in Q2 2024 are in line with Q2 2023 whilst the additional ship is the key driver of the +9% increased capacity for H2. Booked occupancy6 is up +5% for Q2 and well ahead for H2 at +13%, generated by a more advanced booking curve than at the same stage last year. We expect occupancy levels to normalise over the financial year to levels more in line with pre-pandemic levels. Booked ticket rates7 in Q2 are +18% ahead of Q2 2023, where trading was still recovering post-pandemic. Rates for H2 at -2% are slightly lower in particular due to the changed brand mix, with TUI Cruises adding a new ship to the fleet in June 2024. For the summer season, Mein Schiff, with its fleet of seven ships, will offer itineraries to the Mediterranean, Northern Europe, Baltic Sea and North America, with Hapag-Lloyd’s programme focusing on Europe, North America, Asia as well as voyages to the Artic, based on a fleet of five vessels. Marella, with its fleet of five ships will operate itineraries across the Mediterranean and the Caribbean.
  • TUI Musement – In our Tours and Activity business, we will expand our B2C experiences offering as well as B2B business with partners and anticipate a higher volume of transfers and experiences sales driven by our Markets & Airlines business. Bookings continue their positive development, with sales to date for our experiences business, providing excursions, activities and tickets, +12% ahead for Q2 and anticipated to increase lower-double digit in H2 2024. The provision of transfer services and support to our customers in the destination, is projected to develop in line with operations and capacity operated by Markets & Airlines over the remaining booking period.

 

1 FY 2024 trading data (excluding Blue Diamond in Hotels & Resorts) as of 4 February 2024 compared to 2023 trading data

2 Number of hotel days open multiplied by beds available in the hotel (Group owned and leased hotels)

3 Occupied beds divided by available beds (Group owned and lease hotels)

4 Board and lodging revenue divided by occupied bed nights (Group owned and leased hotels)

5 Number of operating days multiplied by berths available on the operated ships

6 Achieved passenger cruise days divided by available passenger cruise days

7 TUI Cruises: Ticket revenue divided by achieved passenger cruise days. Marella Cruises: Revenue (stay on ship inclusive of transfers, flights and
  hotels due to the integrated nature of Marella Cruises) divided by achieved passenger cruise days

 

 

Strategic priorities

The TUI Group's strategy outlined in the Annual Report 20231 will be driven forward in the current financial year.

 

During the quarter we have made further progress in achieving our strategic transformation. The initiatives include the following:

  • We have a strong pipeline of hotels as we aim to grow our hotel portfolio in the mid-term. As part of this growth, we announced in the quarter the first hotel of the fund on Zanzibar under the new brand “The Mora”. The brand adds a new upper market brand to the hotel portfolio by offering laid-back luxury combined with exceptional service. “The Mora Zanzibar” will begin operating from this Spring.
  • TUI Musement is one of the largest digital providers of experiences (including excursions, activities and tickets) transfers and multi-day tours. In January 2024, the business announced the expansion of its partnership with easyJet, by making the TUI Musement portfolio of experiences available to customers of easyJet airline. In addition, the business has also relaunched the TUI Musement App, which further enhances the customer experience as well as cross- and upselling.
     

We also aim to further improve our net leverage, focusing on optimising working capital and cash from operations and maintaining disciplined capital expenditure through asset right and joint venture growth. This will support improving the structure of our balance sheet with the target to bring our net leverage2 down below 1.0x. In this context we will also look to return and debt-finance the remaining KfW Revolving Credit Facility (RCF) in due course.

 

1 Details on our strategy see TUI Group Annual Report 2023 from page 24

2 Net leverage ratio defined as net debt (Financial liabilities plus lease liabilities less cash & cash equivalents less other current financial assets)

  divided by underlying EBITDA

 

Report on changes in expected development

We re-confirm all our expectations for financial year 2024 set out in the Annual Report 2023. See TUI Group Annual Report 2023 from page 56 onwards.

 

 

 

Consolidated earnings

Revenue

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023
adjusted

 

Var. %

Hotels & Resorts

 

251.7

 

210.9

 

+ 19.3

Cruises

 

166.8

 

115.2

 

+ 44.7

TUI Musement

 

194.9

 

159.7

 

+ 22.0

Holiday Experiences

 

613.4

 

485.9

 

+ 26.2

Northern Region

 

1,441.5

 

1,343.1

 

+ 7.3

Central Region

 

1,633.5

 

1,385.0

 

+ 17.9

Western Region

 

612.6

 

534.9

 

+ 14.5

Markets & Airlines

 

3,687.6

 

3,263.1

 

+ 13.0

All other segments

 

1.6

 

1.5

 

+ 3.6

TUI Group

 

4,302.5

 

3,750.5

 

+ 14.7

TUI Group (at constant currency)

 

4,303.9

 

3,750.5

 

+ 14.8

 

 

Underlying EBIT

 

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023
adjusted

 

Var. %

 

Hotels & Resorts

 

90.7

 

71.6

 

+ 26.6

 

Cruises

 

34.5

 

0.2

 

n. a.

 

TUI Musement

 

- 10.7

 

- 13.5

 

+ 20.9

 

Holiday Experiences

 

114.5

 

58.3

 

+ 96.3

 

Northern Region

 

- 50.4

 

- 122.0

 

+ 58.6

 

Central Region

 

1.3

 

- 29.0

 

n. a.

 

Western Region

 

- 46.6

 

- 43.7

 

- 6.6

 

Markets & Airlines

 

- 95.7

 

- 194.6

 

+ 50.8

 

All other segments

 

- 12.8

 

- 16.7

 

+ 23.1

 

TUI Group

 

6.0

 

- 153.0

 

n. a.

 

TUI Group (at constant currency)

 

14.0

 

- 153.0

 

n. a.

 

 

 

EBIT

 

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023
adjusted

 

Var. %

 

Hotels & Resorts

 

91.8

 

71.0

 

+ 29.3

 

Cruises

 

34.5

 

0.2

 

n. a.

 

TUI Musement

 

- 12.1

 

- 13.9

 

+ 13.0

 

Holiday Experiences

 

114.2

 

57.2

 

+ 99.5

 

Northern Region

 

- 51.7

 

- 125.7

 

+ 58.9

 

Central Region

 

0.1

 

- 28.9

 

n. a.

 

Western Region

 

- 44.5

 

- 42.6

 

- 4.3

 

Markets & Airlines

 

- 96.1

 

- 197.3

 

+ 51.3

 

All other segments

 

- 17.9

 

- 18.6

 

+ 4.0

 

TUI Group

 

0.2

 

- 158.7

 

n. a.

 

 

 

 

Segmental performance

Holiday Experiences

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023
adjusted

 

Var. %

Revenue

 

613.4

 

485.9

 

+ 26.2

Underlying EBIT

 

114.5

 

58.3

 

+ 96.3

Underlying EBIT at constant currency

 

119.9

 

58.3

 

+ 105.5

 

 

Hotels & Resorts

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023
adjusted

 

Var. %

Total revenue1

 

448.4

 

384.7

 

+ 16.6

Revenue

 

251.7

 

210.9

 

+ 19.3

Underlying EBIT

 

90.7

 

71.6

 

+ 26.6

Underlying EBIT at constant currency

 

94.4

 

71.6

 

+ 31.7

Available bed nights2 ('000)

 

8,813

 

8,548

 

+ 3.1

Riu

 

3,518

 

3,224

 

+ 9.1

Robinson

 

781

 

825

 

- 5.3

Blue Diamond

 

1,519

 

1,363

 

+ 11.5

Occupancy3 (%, variance in % points)

 

78

 

75

 

+ 3

Riu

 

89

 

86

 

+ 3

Robinson

 

71

 

69

 

+ 2

Blue Diamond

 

83

 

84

 

- 1

Average daily rate4 (€)

 

90

 

86

 

+ 4.9

Riu

 

82

 

77

 

+ 6.8

Robinson

 

107

 

101

 

+ 6.1

Blue Diamond

 

150

 

151

 

- 0.6

Revenue includes fully consolidated companies, all other KPIs incl. companies measured at equity

1 Total revenue includes intra-Group revenue

 

 

 

 

 

 

2 Number of hotel days open multiplied by beds available (Group owned and leased hotels)

3 Occupied beds divided by available beds (Group owned and leased hotels)

4 Board and lodging revenue divided by occupied bed nights (Group owned and leased hotels)

 

The Hotels & Resorts portfolio is well-diversified in terms of product offer, destination mix and ownership models, and benefits from multi-channel and multi-source market distribution via Markets & Airlines, direct to customer,

and via third parties such as Online Travel Agents (OTAs) and tour operators mainly outside our own source markets.

 

Q1 2024 total revenue for the segment grew to €448.4m, an increase of 17% year-on-year (Q1 2023: €384.7m) driven by higher bed nights and occupancy at increased rates. As a result, the segment contributed a Q1 underlying EBIT of €90.7m, up €19.0m year-on-year (Q1 2023: €71.6m). Results were supported in particular by a stronger operational performance for Riu. The Canaries, Cape Verde and Turkey proved to be highly sought after destinations reporting higher volumes and rates.  

 

A total of 8.8m available bed nights (capacity) were on offer during the quarter, up by 3% on Q1 2023 due to higher capacities across the Riu portfolio mainly as a result of fewer hotel renovations. The overall occupancy rate for the segment remained high across all businesses rising by a total of 3%pts year-on-year to 78% with our hotels in the Caribbean in strong demand at an occupancy level of 87%. The Canaries also proved popular during this winter period, achieving an occupancy level of 81%.

 

Q1 2024 average daily rate increased by 5% year-on-year to €90 overall supported by an improvement across our key brands. Riu’s average daily rate increased by 7% to €82 (Q1 2023: €77). Similarly, Robinson rates also increased by 6% to €107 (Q1 2023: €101). Blue Diamond’s average daily rate were 1% lower at €150 due to exchange rate translation (Q1 2023: €151). At constant currency the Q1 2024 average daily rate was +4% higher at €158. 

 

 

Cruises

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023

 

Var. %

Revenue1

 

166.8

 

115.2

 

+ 44.7

Underlying EBIT

 

34.5

 

0.2

 

n. a.

Underlying EBIT at constant currency

 

34.4

 

0.2

 

n. a.

Available passenger cruise days2 ('000)

 

2,336

 

2,379

 

- 1.8

Mein Schiff

 

1,429

 

1,623

 

- 11.9

Hapag-Lloyd Cruises

 

146

 

148

 

- 1.5

Marella Cruises

 

760

 

607

 

+ 25.2

Occupancy3 (%, variance in % points)

 

96

 

87

 

+ 8

Mein Schiff

 

99

 

88

 

+ 11

Hapag-Lloyd Cruises

 

73

 

65

 

+ 8

Marella Cruises

 

93

 

91

 

+ 2

Average daily rate (€)

 

204

 

175

 

+ 17.0

Mein Schiff4

 

169

 

139

 

+ 22.1

Hapag-Lloyd Cruises4

 

678

 

669

 

+ 1.4

Marella Cruises5 (in £)

 

177

 

158

 

+ 12.1

1 Revenue is not included for Mein Schiff and Hapag-Lloyd Cruises as the joint venture TUI Cruises is consolidated at equity

2 Number of operating days multiplied by berths available on the operated ships.

3 Achieved passenger cruise days divided by available passenger cruise days

4 Ticket revenue divided by achieved passenger cruise days

5 Revenue (stay on ship inclusive of transfers, flights and hotels due to the integrated nature of Marella Cruises) divided by achieved passenger cruise days

 

The Cruises segment comprises the joint venture TUI Cruises in Germany, which operates cruise ships under the brands Mein Schiff and Hapag-Lloyd Cruises, and Marella Cruises in UK. As in the previous year, the segment operated a full fleet of 16 ships.

 

Q1 2024 revenue reflecting Marella Cruises only, increased to €166.8m, an improvement of 45% year-on-year (Q1 2023: €115.2m). Q1 2024 underlying EBIT (including the equity result of TUI Cruises), was €34.5m, increasing €34.3m against the prior year quarter (Q1 2023: €0.2m) as Cruises continued its positive development. The improvement for the segment, was driven by an increased occupancy at higher rates, with all three of our cruise brands contributing to the improvement. Available passenger cruise days of 2.3m were -2% overall (Q1 2023: 2.4m) due to scheduled regular dry and wet dock periods. The EAT (Earning after Tax) of €28.6m for TUI Cruises, was up significant by €21.1m year-on-year (Q1 2023: €7.6m).

 

Mein Schiff – Mein Schiff deployed a full fleet of six ships during the quarter against a fleet of seven vessels in the prior year following the transfer of Mein Schiff Herz to Marella Cruises in the prior year. The brand offered itineraries to the Canaries, the Orient, the Caribbean, Central America, Asia and Northern Europe. Occupancy of the operated fleet continued to rise, reaching 99% during the quarter (Q1 2023: 88%) and returning to pre-pandemic levels, underlining the strong demand for our German language, premium all-inclusive product post pandemic. At €169, the average daily rate was 22% higher than in the prior year (Q1 2023: €139) supported by higher demand. 

 

Hapag-Lloyd Cruises – The brand is a leading provider of luxury and expeditions cruises in German speaking markets. During the quarter itineraries were focused on Europe, the Americas, the Caribbean, South Pacific as well as voyages to Antartica. As in the prior year, the fleet comprised two luxury liners and three expedition cruise ships. Q1 average daily rate was €678, increasing by 1% on prior year (Q1 2023: €669). Q1 occupancy of the fleet was 73% (Q1 2023: 65%), underlining the significantly increased demand for the product on offer.

 

Marella Cruises – Our UK brand caters for a variety of cruise customer including families. In Q1 2024 the fleet consisted of five ships, one more than in Q1 2023, following the commissioning of the Marella Voyager, formerly Mein Schiff Herz which entered the fleet last year in time for the Summer 2023 season. During the quarter, Marella Cruises operated itineraries to the Canaries and the Caribbean, with routes to Asia also reintroduced for the Winter season. The business achieved an average daily rate of £177 up 12% year-on-year (Q1 2023: £158). Occupancy was at 93%, versus a prior year Q1 of 91% benefiting from an improved trading environment.

 

 

TUI Musement

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023
adjusted

 

Var. %

Total revenue1

 

268.6

 

224.2

 

+ 19.8

Revenue

 

194.9

 

159.7

 

+ 22.0

Underlying EBIT

 

- 10.7

 

- 13.5

 

+ 20.9

Underlying EBIT at constant currency

 

- 8.9

 

- 13.5

 

+ 34.1

1 Total revenue includes intra-Group revenue

 

 

 

 

 

 

 

TUI Musement is one of the largest digital providers of experiences (including excursions, activities and tickets) transfers and multi-day tours.

 

Q1 2024 revenue of €194.9m, was 22% higher year-on-year (Q1 2023: €159.7m). The underlying EBIT of €-10.7m reduced by €2.8m against prior year (Q1 2023: €-13.5m) supported by the expansion of the B2C experiences offering, increased B2B partnerships and higher transfer volumes and experience sales to our Markets & Airlines business.

 

During the quarter, TUI Musement provided 5.4m guest transfers in the destinations, an increase of 9% against the prior year (Q1 2023: 5.0m). In addition, 2.0m experiences were sold in the quarter, 16% higher year-on-year (Q1 2023: 1.7m). Popular experiences in sun & beach destinations are proving to be products of TUI Collection products, our portfolio of of own experiences, which are developed by the TUI team in conjunction with local operators. In city destinations tickets to renowned attractions such as the Sagrada Familia in Barcelona were particularly sought after.

 

 

Markets & Airlines

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023
adjusted

 

Var. %

Revenue

 

3,687.6

 

3,263.1

 

+ 13.0

Underlying EBIT

 

- 95.7

 

- 194.6

 

+ 50.8

Underlying EBIT at constant currency

 

- 93.0

 

- 194.6

 

+ 52.2

Direct distribution mix1
(in %, variance in % points)

 

73

 

75

 

- 2

Online mix2
(in %, variance in % points)

 

50

 

52

 

- 2

Customers ('000)

 

3,514

 

3,303

 

+ 6.4

1 Share of sales via own channels (retail and online)

2 Share of online sales

 

 

Our Markets & Airlines business covers the whole customer journey. We differentiate ourselves from the competition (such as tour operators, OTAs, hotels and airlines) based on our products, services, customer care and trust, and by following a customer-centric approach.

 

Q1 2024 revenue of €3,687.6m, increased 13% year-on-year (Q1 2023: €3,263.1m). Whilst Q1 2024 Underlying EBIT is traditionally negative, results for the quarter improved significantly by €98.9m to €-95.7m year-on-year (Q1 2023: €-194.6m) and above pre-pandemic levels. Notably, Central Region achieved a positive first quarter result for the first time1. The overall improvement was driven in part by an improved operational performance with higher volumes at increased prices, as we continue to transform the segment. In addition, the return to normal hedging conditions for the business following the lifting of restrictions on our ability to hedge in line with our policy, provided, as expected, significant upside to the results across the markets and in particular in UK. 

 

Short- and medium haul destinations such as the Canaries, Egypt and Cape Verde proved again to be the most popular destinations for our customers. Key long-haul destinations in the quarter included Mexico, Thailand and the Dominican Republic.

 

A total of 3,514k customers departed in the quarter, an increase of 211k customers versus prior year with the majority of overall customers departing during October. Average load factor of 86% for Q1 2024, was 1%pt higher than in the prior year quarter (Q1 2023: 85%).

 

As part of our strategy to accelerate the Group’s transformation into a digital platform business, we continue to drive forward our app sales which made up 6.6% of overall sales in Q1 2024, an increase of 37% against Q1 2023. In this context, we have also seen increased demand for our dynamically packaged products, providing our customers with greater choice and flexibility. Here 0.6m of our customer volumes were dynamically packaged in the quarter, up 24% year-on-year (Q1 2023: 0.5m).

 

1 Since the merger of TUI AG and TUI Travel PLC in 2014

 

 

Northern Region

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023

 

Var. %

Revenue

 

1,441.5

 

1,343.1

 

+ 7.3

Underlying EBIT

 

- 50.4

 

- 122.0

 

+ 58.6

Underlying EBIT at constant currency

 

- 49.0

 

- 122.0

 

+ 59.8

Direct distribution mix1
(in %, variance in % points)

 

93

 

93

 

-

Online mix2
(in %, variance in % points)

 

68

 

68

 

-

Customers ('000)

 

1,240

 

1,208

 

+ 2.7

1 Share of sales via own channels (retail and online)

2 Share of online sales

 

Northern Region comprises the source markets UK and Nordics following the sale of our strategic tour operator venture in Canada in May 2023.

 

Q1 2024 revenue for the region of €1,441.5m, was 7% higher year-on-year (Q1 2023: €1,343.1m). Q1 2024 underlying EBIT of €-50.4m improved significantly by €71.5m year-on-year (Q1 2023: €-122.0m) supported by increased demand at increased prices as well as an upside in particular in UK, from the return to normal hedging lines. 

 

Q1 2024 customer volumes increased by 2.7% to 1,240k versus 1,208k guests in Q1 2023 driven by higher demand and returning to pre-pandemic levels. Online distribution continued to be high at 68%, and in line with prior year (Q1 2023: 68%). Direct distribution was at 93% maintaining the high rate of the prior year (Q1 2023: 93%).

 

 

Central Region

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023
adjusted

 

Var. %

Revenue

 

1,633.5

 

1,385.0

 

+ 17.9

Underlying EBIT

 

1.3

 

- 29.0

 

n. a.

Underlying EBIT at constant currency

 

1.9

 

- 29.0

 

n. a.

Direct distribution mix1
(in %, variance in % points)

 

52

 

54

 

- 2

Online mix2
(in %, variance in % points)

 

27

 

28

 

- 1

Customers ('000)

 

1,383

 

1,232

 

+ 12.2

1 Share of sales via own channels (retail and online)

2 Share of online sales

 

Central Region comprises the source markets Germany, Austria, Switzerland and Poland.

 

Q1 2023 revenue of €1,633.5m, improved 18 % year-on-year (Q1 2023: €1,385.0m). Underlying EBIT rose by €30.3m to €1.3m year-on-year (Q1 2023: €-29.0m) with the Region achieving a positive first quarter result for the first time.1 The significant improvement was driven in particular by stronger demand in Germany with increased volumes and prices. 

Central Region saw 1,383k customers depart in the quarter, an improvement of 12.2% versus prior year (Q1 2023: 1,232k), the highest increase across our regions. Online distribution stood at 27%, down slightly by 1%pt against prior year. Direct distribution was 2%pts lower to 52% against Q1 2023 of 54%.

 

1 Since the merger of TUI AG and TUI Travel PLC in 2014

 

 

Western Region

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023

 

Var. %

Revenue

 

612.6

 

534.9

 

+ 14.5

Underlying EBIT

 

- 46.6

 

- 43.7

 

- 6.6

Underlying EBIT at constant currency

 

- 45.9

 

- 43.7

 

- 5.1

Direct distribution mix1
(in %, variance in % points)

 

77

 

79

 

- 2

Online mix2
(in %, variance in % points)

 

59

 

62

 

- 3

Customers ('000)

 

891

 

863

 

+ 3.3

1 Share of sales via own channels (retail and online)

2 Share of online sales

 

Western Region comprises the source markets Belgium, Netherlands and France.

 

Q1 2024 revenue of €612.6m, was up 15% year-on-year (Q1 2023: €534.9m). Q1 underlying EBIT of
€-46.6m, decreased by €2.9m year-on-year (Q1 2023: €-43.7m). Improved volumes and prices in the region year-on-year were offset mainly by maintenance reserve provision effects.

 

Customer volumes rose by 3.3% to 891k guests year-on-year (Q1 2023: 863k). Online distribution for region was at 59%, 3%pt below prior year. Direct distribution was down 2%pts to 77% versus prior year (Q1 2023: 79%).

 

 

All other segments

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023
adjusted

 

Var. %

Revenue

 

1.6

 

1.5

 

+ 3.6

Underlying EBIT

 

- 12.8

 

- 16.7

 

+ 23.1

Underlying EBIT at constant currency)

 

- 12.9

 

- 16.7

 

+ 22.5

 

All other segments includes the corporate centre functions of TUI AG and the interim holdings, the Group’s real estate companies and the Group’s key tourism functions.

 

Q1 2024 underlying EBIT of €-12.8m, improved by €3.8m year-on-year (Q1 2023: €-16.7m) primarily due to a positive effect resulting from loan impairment reversals, partly offset by higher costs.

 

 

Financial position and net assets

Cash Flow / Net capex and investments / Net debt

TUI Group's operating cash outflow in Q1 2024 of €1,612.5m decreased by 3.5% year-on-year This reflects the lower Group loss, which was partly offset by a higher cash outflow from the settlement of tourism-related prepayments.

 

Net debt as at 31 December 2023 of €4.0bn decreased by €1.3bn compared to previous year level (31 December 2022: €5.3bn). This improvement was driven by net proceeds (following repayment of the final WSF obligations) from our capital increase in April 2023 and the positive cash flow from operations.

 

 

Net debt

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

 

31 Dec 2023

 

31 Dec 2022

 

Var. %

Financial debt

 

2,988.8

 

3,951.8

 

- 24.4

Lease liabilities

 

2,789.1

 

2,935.8

 

- 5.0

Cash and cash equivalents

 

1,714.8

 

1,542.7

 

+ 11.2

Short-term interest-bearing investments

 

79.8

 

85.0

 

- 6.1

Net debt

 

3,983.3

 

5,259.9

 

- 24.3

 

 

Net capex and investments

 

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023
adjusted

 

Var. %

 

Cash gross capex

 

 

 

 

 

 

 

Hotels & Resorts

 

27.3

 

71.4

 

- 61.8

 

Cruises

 

21.7

 

28.0

 

- 22.5

 

TUI Musement

 

5.2

 

5.3

 

- 1.9

 

Holiday Experiences

 

54.3

 

104.7

 

- 48.1

 

Northern Region

 

5.0

 

5.7

 

- 12.3

 

Central Region

 

4.3

 

2.0

 

+ 115.0

 

Western Region

 

7.5

 

4.2

 

+ 78.6

 

Markets & Airlines*

 

17.5

 

33.3

 

- 47.4

 

All other segments

 

33.4

 

31.5

 

+ 6.0

 

TUI Group

 

105.2

 

169.5

 

- 37.9

 

Net pre delivery payments on aircraft

 

61.1

 

59.0

 

+ 3.6

 

Financial investments

 

1.4

 

0.3

 

+ 366.7

 

Divestments

 

- 123.8

 

- 79.8

 

- 55.1

 

Net capex and investments

 

43.9

 

149.0

 

- 70.5

 

 

* Including €0.7m for Q1 2024 (Q1 2023: €21.4m) cash gross capex of the aircraft leasing companies, which are allocated to Markets & Airlines as a whole, but not to the individual segments Northern Region, Central Region and Western Region.

 

Cash gross capex in Q1 2024 of €105.2m was €64.3m lower year-on-year. This decline was due to lower investments in both the Holiday Experiences and Markets & Airlines segments. The year-on-year increase in divestments in Q1 2024 was mainly driven by higher disposal proceeds. Net capex and investments of €43.9m decreased by €105.1m year-on-year.

 

Foreign exchange/Fuel

We have a strategy of hedging the majority of our jet fuel and currency requirements for future seasons in place. Our hedging policy gives us certainty of costs when planning capacity and pricing. The following table shows the percentage of our forecast requirement that is currently hedged for Euros, US Dollars and jet fuel for our Markets & Airlines.

 

Foreign Exchange/Fuel

 

 

 

 

 

 

 

 

 

 

 

 

 

%

 

Winter 2023/24

 

Summer 2024

 

Winter 2024/25

Euro

 

97

 

82

 

44

US Dollar

 

95

 

88

 

57

Jet Fuel

 

99

 

86

 

59

As at 4 February 2024

 

 

 

 

 

 

 

 

Assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

 

31 Dec 2023

 

30 Sep 2023

 

Var. %

Non-current assets

 

11,688.0

 

11,605.9

 

+ 0.7

Current assets

 

3,830.7

 

4,546.5

 

- 15.7

Total assets

 

15,518.7

 

16,152.4

 

- 3.9

Equity

 

1,393.9

 

1,947.2

 

- 28.4

Provisions

 

1,919.9

 

1,852.4

 

+ 3.6

Financial liabilities

 

2,988.8

 

1,297.0

 

+ 130.4

Other liabilities

 

9,216.1

 

11,055.8

 

- 16.6

Total equity, liabilities and provisions

 

15,518.7

 

16,152.4

 

- 3.9

 

Non-current financial liabilities increased from €1,533.8m at 30 September 2023 to €2,732.3m. This increase was primarily attributable to an increase in liabilities to banks resulting from the utilisation of long-term credit lines.

 

For more details refer to the section Financial liabilities in the Notes of this Interim Report.

 

Comments on the consolidated income statement

In the first three months of financial year 2024, TUI Group's revenue was higher than in Q1 2023, due to a year-on-year increase in business volume and higher average prices, in particular in Markets & Airlines. TUI Group’s results generally also reflect the significant seasonal swing in tourism between the winter and summer travel months.

 

In Q1 2024, consolidated revenue increased by €0.6bn year-on-year to €4.3bn.

 

Unaudited condensed consolidated Income Statement of TUI AG for the period from 1 Oct 2023 to 31 Dec 2023

 

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023

 

Var. %

 

Revenue

 

4,302.5

 

3,750.5

 

+14.7

 

Cost of sales

 

4,106.5

 

3,661.4

 

+12.2

 

Gross profit

 

196.1

 

89.2

 

+119.8

 

Administrative expenses

 

245.4

 

242.6

 

+1.2

 

Other income

 

7.3

 

6.0

 

+21.7

 

Other expenses

 

8.3

 

5.8

 

+43.1

 

Impairment (+) / Reversal of impairment (-) of financial assets

 

- 7.3

 

0.8

 

n. a.

 

Financial income

 

18.7

 

18.4

 

+1.6

 

Financial expense

 

121.8

 

132.5

 

- 8.1

 

Share of result of investments accounted for using the equity method

 

43.1

 

- 4.4

 

n. a.

 

Earnings before income taxes

 

- 103.1

 

- 272.6

 

+62.2

 

Income taxes (expense (+), income (-))

 

- 19.6

 

- 40.8

 

+52.0

 

Group loss

 

- 83.5

 

- 231.8

 

+64.0

 

Group loss attributable to shareholders of TUI AG

 

- 122.6

 

- 256.1

 

+52.1

 

Group profit attributable to non-controlling interest

 

39.1

 

24.3

 

+60.9

 

 

 

 

 

 

 

 

 

 

 

Alternative performance measures

The Group’s main financial KPI is underlying EBIT. We define the EBIT in underlying EBIT as earnings before interest, income taxes and the result from the measurement of the Group’s interest hedges. EBIT by definition includes goodwill impairments.

 

In calculating Underlying EBIT from EBIT, we adjust for separately disclosed items (including any goodwill impair-ment) and expenses from purchase price allocations. Separately disclosed items include adjustments for income and expense items that reflect amounts and frequencies of occurrence rendering an evaluation of the operating profitability of the segments and Group more difficult or causing distortions. These items include gains on disposal of financial investments, significant gains and losses from the sale of assets as well as significant restructuring and integration expenses and any goodwill impairments. Effects from purchase price allocations, ancillary acquisition costs and conditional purchase price payments are adjusted. Expenses from purchase price allocations relate to the amortisation of intangible assets from acquisitions made in previous years.

 

Reconciliation to underlying EBIT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023

 

Var. %

 

Earnings before income taxes

 

- 103.1

 

- 272.6

 

+62.2

 

plus: Net interest expenses (excluding expense / income from measurement of interest hedges)

 

102.8

 

110.5

 

- 7.0

 

plus: Expense/less income from measurement of interest hedges

 

0.5

 

3.4

 

- 85.3

 

EBIT

 

0.2

 

- 158.7

 

n. a.

 

Adjustments:

 

 

 

 

 

 

 

less / plus: Separately disclosed items

 

0.6

 

- 0.7

 

 

 

plus: Expense from purchase price allocation

 

5.2

 

6.4

 

 

 

Underlying EBIT

 

6.0

 

- 153.0

 

n. a.

 

 

The TUI Group’s operating result adjusted for special items (underlying EBIT) improved by €159.0m to €6.0m in Q1 2024.

 

  • For further details on the separately disclosed items see page 41 in the Notes of this Interim Financial Report.

 

Key figures of income statement

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023

 

Var. %

EBITDAR

 

212.2

 

57.8

 

+ 267.1

Operating rental expenses

 

- 4.2

 

0.2

 

n. a.

EBITDA

 

208.0

 

58.0

 

+ 258.5

Depreciation/amortisation less reversals of depreciation*

 

- 207.8

 

- 216.7

 

+ 4.1

EBIT

 

0.2

 

- 158.7

 

n. a.

Income/Expense from the measurement of interest hedges

 

0.5

 

3.4

 

- 85.3

Net interest expense (excluding expense/income from measurement of interest hedges)

 

102.8

 

110.5

 

- 7.0

EBT

 

- 103.1

 

- 272.6

 

+ 62.2

* on property, plant and equipment, intangible assets, right of use assets and other assets

 

 

Other segment indicators

 

Underlying EBITDA

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023
adjusted

 

Var. %

Hotels & Resorts

 

136.2

 

121.7

 

+ 11.9

Cruises

 

56.7

 

17.9

 

+ 216.4

TUI Musement

 

- 3.7

 

- 7.4

 

+ 50.3

Holiday Experiences

 

189.3

 

132.2

 

+ 43.1

Northern Region

 

22.8

 

- 43.2

 

n. a.

Central Region

 

26.5

 

- 3.4

 

n. a.

Western Region

 

- 12.4

 

- 7.2

 

- 73.1

Markets & Airlines

 

36.9

 

- 53.8

 

n. a.

All other segments

 

- 17.6

 

- 20.2

 

+ 13.0

TUI Group

 

208.5

 

58.3

 

+ 258.0

 

 

EBITDA

 

 

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023
adjusted

 

Var. %

Hotels & Resorts

 

137.3

 

121.1

 

+ 13.4

Cruises

 

56.7

 

17.9

 

+ 216.4

TUI Musement

 

- 3.7

 

- 6.1

 

+ 39.1

Holiday Experiences

 

190.4

 

132.9

 

+ 43.2

Northern Region

 

24.4

 

- 44.1

 

n. a.

Central Region

 

25.5

 

- 3.2

 

n. a.

Western Region

 

- 9.7

 

- 5.4

 

- 77.8

Markets & Airlines

 

40.3

 

- 52.7

 

n. a.

All other segments

 

- 22.7

 

- 22.2

 

- 2.1

TUI Group

 

208.0

 

58.0

 

+ 258.5

 

 

Employees

 

 

 

 

 

 

 

 

 

31 Dec 2023

 

31 Dec 2022
adjusted

 

Var. %

Hotels & Resorts

 

19,702

 

19,179

 

+ 2.7

Cruises*

 

73

 

75

 

- 2.7

TUI Musement

 

7,714

 

7,024

 

+ 9.8

Holiday Experiences

 

27,489

 

26,278

 

+ 4.6

Northern Region

 

10,171

 

9,444

 

+ 7.7

Central Region

 

7,284

 

7,112

 

+ 2.4

Western Region

 

5,276

 

5,004

 

+ 5.4

Markets & Airlines

 

22,731

 

21,560

 

+ 5.4

All other segments

 

2,441

 

2,141

 

+ 14.0

Total

 

52,661

 

49,979

 

+ 5.4

* Excludes TUI Cruises (JV) employees. Cruises employees are primarily hired by external crew management agencies.

 

 

Corporate Governance

Composition of the Boards

In Q1 2024 and until 12 February 2024 the composition of the Boards of TUI AG changed as follows:

 

Executive Board

With effect from the end of 5 January 2024, David Burling resigned from his position as a member of the Executive Board. He was succeeded as of 1 January 2024 by David Schelp as CEO Markets & Airlines.

 

Supervisory Board

There were no changes to the Supervisory Board in the reporting period.

 

The current, complete composition of the Executive Board and Supervisory Board is published on our website, where it is permanently accessible to the public.

 

 

Risk and Opportunity Report

Successful management of existing and emerging risks is critical to the long-term success of our business and to the achievement of our strategic objectives. In order to seize market opportunities and leverage the potential for success, risk must be accepted to a reasonable degree. Risk management is therefore an integral component of the Group’s Corporate Governance. Full details of our risk governance framework, principal risks and opportunities can be found in the Annual Report. There were no changes in Q1 2024 and until 12 February 2024 compared to the risks and opportunities described in detail in our Annual Report 2023.

 

  • For details of risks and opportunities, see our Annual Report 2023, from page 35 and page 58

 

Related parties

Apart from the subsidiaries included in the Interim Financial Statements, TUI AG, in carrying out its business activities, maintains direct and indirect relationships with related parties. All transactions with related parties were executed on an arm’s length basis.

 

Detailed information on related parties is provided under section 51 in the Notes to the consolidated financial statements 2023.

 

In order to strengthen the equity, the shareholders of Pep Toni Hotels S.A. have decided to make additional funds available to the company. The payment into the capital reserve of €73.5m was made by TUI in January 2024.

 

Unaudited condensed consolidated Interim Financial Statements

Unaudited condensed consolidated Income Statement of TUI AG for the period from 1 Oct 2023 to 31 Dec 2023

 

 

 

 

 

 

 

 

€ million

 

Notes

 

Q1 2024

 

Q1 2023

 

Revenue

 

(1)

 

4,302.5

 

3,750.5

 

Cost of sales

 

(2)

 

4,106.5

 

3,661.4

 

Gross profit

 

 

 

196.1

 

89.2

 

Administrative expenses

 

(2)

 

245.4

 

242.6

 

Other income

 

(3)

 

7.3

 

6.0

 

Other expenses

 

(4)

 

8.3

 

5.8

 

Impairment (+) / Reversal of impairment (-) of financial assets

 

(18)

 

- 7.3

 

0.8

 

Financial income

 

(5)

 

18.7

 

18.4

 

Financial expense

 

(5)

 

121.8

 

132.5

 

Share of result of investments accounted for using the equity method

 

(6)

 

43.1

 

- 4.4

 

Earnings before income taxes

 

 

 

- 103.1

 

- 272.6

 

Income taxes (expense (+), income (-))

 

(7)

 

- 19.6

 

- 40.8

 

Group loss

 

 

 

- 83.5

 

- 231.8

 

Group loss attributable to shareholders of TUI AG

 

 

 

- 122.6

 

- 256.1

 

Group profit attributable to non-controlling interest

 

(8)

 

39.1

 

24.3

 

  

 

Earnings per share

 

 

 

 

 

 

 

Q1 2024

 

Q1 2023

 

Basic and diluted loss / earnings per share

 

- 0.24

 

- 0.89

*

* Earnings per share were adjusted for the impact of the 10-for-1 reverse stock split in February 2023 as well as the impact of the subscription rights issued in the capital increase on 24 April 2023.

  

 

Unaudited condensed consolidated Statement of Comprehensive Income of TUI AG for the period from 1 Oct 2023 to 31 Dec 2023

 

 

 

 

 

€ million

 

Q1 2024

 

Q1 2023

Group loss

 

- 83.5

 

- 231.8

Remeasurements of defined benefit obligations and related fund assets

 

- 94.9

 

- 123.7

Fair value profit / loss on investments in equity instruments designated as at FVTOCI

 

-

 

1.1

Income tax related to items that will not be reclassified (expense (-), income (+))

 

28.1

 

30.9

Items that will not be reclassified to profit or loss

 

- 66.8

 

- 91.7

Foreign exchange differences

 

- 51.7

 

- 101.3

Foreign exchange differences outside profit or loss

 

- 51.8

 

- 101.3

Reclassification

 

0.1

 

-

Cash flow hedges

 

- 343.9

 

- 136.3

Changes in the fair value

 

- 348.5

 

- 116.3

Reclassification

 

4.6

 

- 20.0

Other comprehensive income of investments accounted for using the equity method that may be reclassified

 

- 13.3

 

- 1.0

Changes in the measurement outside profit or loss

 

- 13.3

 

- 1.0

Income tax related to items that may be reclassified (expense (-), income (+))

 

80.9

 

34.7

Items that may be reclassified to profit or loss

 

- 328.0

 

- 203.8

Other comprehensive income

 

- 394.8

 

- 295.6

Total comprehensive income

 

- 478.3

 

- 527.3

attributable to shareholders of TUI AG

 

- 507.5

 

- 530.8

attributable to non-controlling interest

 

29.2

 

3.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited condensed consolidated Statement of Financial Position of TUI AG as at 31 Dec 2023

 

 

 

 

 

 

 

€ million

 

Notes

 

31 Dec 2023

 

30 Sep 2023

Assets

 

 

 

 

 

 

Goodwill

 

(9)

 

2,949.6

 

2,949.2

Other intangible assets

 

 

 

545.0

 

538.0

Property, plant and equipment

 

(10)

 

3,535.0

 

3,480.3

Right-of-use assets

 

(11)

 

2,652.4

 

2,763.4

Investments in joint ventures and associates

 

 

 

1,270.1

 

1,198.2

Trade and other receivables

 

(12), (18)

 

94.9

 

74.7

Derivative financial instruments

 

(18)

 

2.3

 

10.3

Other financial assets

 

(18)

 

10.7

 

10.8

Touristic payments on account

 

 

 

144.3

 

152.5

Other non-financial assets

 

 

 

92.3

 

100.7

Income tax assets

 

 

 

17.2

 

17.2

Deferred tax assets

 

 

 

374.1

 

310.6

Non-current assets

 

 

 

11,688.0

 

11,605.9

 

 

 

 

 

 

 

Inventories

 

 

 

63.8

 

62.1

Trade and other receivables

 

(12), (18)

 

988.8

 

1,090.4

Derivative financial instruments

 

(18)

 

35.4

 

258.2

Other financial assets

 

(18)

 

79.8

 

48.6

Touristic payments on account

 

 

 

752.5

 

787.4

Other non-financial assets

 

 

 

148.8

 

129.9

Income tax assets

 

 

 

46.5

 

41.0

Cash and cash equivalents

 

(18)

 

1,714.8

 

2,060.3

Assets held for sale

 

(13)

 

0.3

 

68.6

Current assets

 

 

 

3,830.7

 

4,546.5

Total assets

 

 

 

15,518.7

 

16,152.4

 

Unaudited condensed consolidated Statement of Financial Position of TUI AG as at 31 Dec 2023

 

 

 

 

 

 

 

€ million

 

Notes

 

31 Dec 2023

 

30 Sep 2023

Equity and liabilities

 

 

 

 

 

 

Subscribed capital

 

 

 

507.4

 

507.4

Capital reserves

 

 

 

9,090.1

 

9,090.1

Revenue reserves

 

 

 

- 8,982.1

 

- 8,474.6

Equity before non-controlling interest

 

 

 

615.3

 

1,122.9

Non-controlling interest

 

 

 

778.6

 

824.3

Equity

 

(17)

 

1,393.9

 

1,947.2

 

 

 

 

 

 

 

Pension provisions and similar obligations

 

(14)

 

697.8

 

637.1

Other provisions

 

 

 

876.0

 

848.5

Non-current provisions

 

 

 

1,573.8

 

1,485.7

Financial liabilities

 

(15), (18)

 

2,732.3

 

1,198.5

Lease liabilities

 

(16)

 

2,144.0

 

2,216.9

Derivative financial instruments

 

(18)

 

26.8

 

1.7

Other financial liabilities

 

(18)

 

2.4

 

2.6

Other non-financial liabilities

 

 

 

233.2

 

252.9

Income tax liabilities

 

 

 

13.3

 

11.0

Deferred tax liabilities

 

 

 

64.3

 

159.0

Non-current liabilities

 

 

 

5,216.4

 

3,842.6

Non-current provisions and liabilities

 

 

 

6,790.2

 

5,328.3

 

 

 

 

 

 

 

Pension provisions and similar obligations

 

(14)

 

30.5

 

33.3

Other provisions

 

 

 

315.6

 

333.4

Current provisions

 

 

 

346.1

 

366.7

Financial liabilities

 

(15), (18)

 

256.5

 

98.5

Lease liabilities

 

(16)

 

645.1

 

701.2

Trade payables

 

(18)

 

2,017.0

 

3,373.7

Derivative financial instruments

 

(18)

 

159.4

 

35.3

Other financial liabilities

 

(18)

 

191.5

 

121.8

Touristic advance payments received

 

 

 

3,165.1

 

3,530.2

Other non-financial liabilities

 

 

 

465.2

 

534.1

Income tax liabilities

 

 

 

88.6

 

113.8

Current liabilities

 

 

 

6,988.4

 

8,508.6

Liabilities related to assets held for sale

 

 

 

-

 

1.6

Current provisions and liabilities

 

 

 

7,334.5

 

8,876.9

Total equity, liabilities and provisions

 

 

 

15,518.7

 

16,152.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited condensed consolidated Statement of Changes in Equity of TUI AG for the period from 1 Oct 2023 to 31 Dec 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

 

Subscribed capital

 

Capital reserves

 

Revenue reserves

 

Silent participation

 

Equity before non-controlling interest

 

Non-controlling interest

 

Total

Balance as at 1 Oct 2022

 

1,785.2

 

6,085.9

 

- 8,432.7

 

420.0

 

- 141.6

 

787.3

 

645.7

Coupon on silent participation

 

-

 

-

 

- 16.8

 

-

 

- 16.8

 

-

 

- 16.8

Group loss for the year

 

-

 

-

 

- 256.1

 

-

 

- 256.1

 

24.3

 

- 231.8

Foreign exchange differences

 

-

 

-

 

- 80.4

 

-

 

- 80.4

 

- 20.9

 

- 101.3

Financial assets at FVTOCI

 

-

 

-

 

1.1

 

-

 

1.1

 

-

 

1.1

Cash flow hedges

 

-

 

-

 

- 136.3

 

-

 

- 136.3

 

-

 

- 136.3

Remeasurements of defined benefit obligations and related fund assets

 

-

 

-

 

- 123.7

 

-

 

- 123.7

 

-

 

- 123.7

Other comprehensive income of investments accounted for using the equity method

 

-

 

-

 

- 1.0

 

-

 

- 1.0

 

-

 

- 1.0

Taxes attributable to other comprehensive income

 

-

 

-

 

65.6

 

-

 

65.6

 

-

 

65.6

Other comprehensive income

 

-

 

-

 

- 274.7

 

-

 

- 274.7

 

- 20.9

 

- 295.6

Total comprehensive income

 

-

 

-

 

- 530.8

 

-

 

- 530.8

 

3.4

 

- 527.4

Balance as at 31 Dec 2022

 

1,785.2

 

6,085.9

 

- 8,980.3

 

420.0

 

- 689.2

 

790.7

 

101.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as at 1 Oct 2023

 

507.4

 

9,090.1

 

- 8,474.6

 

-

 

1,122.9

 

824.3

 

1,947.2

Dividends

 

-

 

-

 

-

 

-

 

-

 

- 75.0

 

- 75.0

Group loss for the year

 

-

 

-

 

- 122.6

 

-

 

- 122.6

 

39.1

 

- 83.5

Foreign exchange differences

 

-

 

-

 

- 41.9

 

-

 

- 41.9

 

- 9.8

 

- 51.7

Cash flow hedges

 

-

 

-

 

- 343.9

 

-

 

- 343.9

 

-

 

- 343.9

Remeasurements of defined benefit obligations and related fund assets

 

-

 

-

 

- 94.9

 

-

 

- 94.9

 

-

 

- 94.9

Other comprehensive income of investments accounted for using the equity method

 

-

 

-

 

- 13.3

 

-

 

- 13.3

 

-

 

- 13.3

Taxes attributable to other comprehensive income

 

-

 

-

 

109.0

 

-

 

109.0

 

-

 

109.0

Other comprehensive income

 

-

 

-

 

- 385.0

 

-

 

- 385.0

 

- 9.8

 

- 394.8

Total comprehensive income

 

-

 

-

 

- 507.6

 

-

 

- 507.6

 

29.3

 

- 478.3

Balance as at 31 Dec 2023

 

507.4

 

9,090.1

 

- 8,982.2

 

-

 

615.3

 

778.6

 

1,393.9

 

 

Unaudited condensed consolidated Cash Flow Statement of TUI AG for the period from 1 Oct 2023 to 31 Dec 2023

 

 

 

 

 

 

 

€ million

 

Notes

 

Q1 2024

 

Q1 2023

Group loss

 

 

 

- 83.5

 

- 231.8

Depreciation, amortisation and impairment (+) / write-backs (-)

 

 

 

207.8

 

216.7

Other non-cash expenses (+) / income (-)

 

 

 

- 34.2

 

12.7

Interest expenses

 

 

 

121.1

 

129.5

Dividends from joint ventures and associates

 

 

 

15.3

 

2.2

Profit (-) / loss (+) from disposals of non-current assets

 

 

 

0.5

 

- 4.0

Increase (-) / decrease (+) in inventories

 

 

 

- 1.8

 

- 1.1

Increase (-) / decrease (+) in receivables and other assets

 

 

 

357.5

 

310.2

Increase (+) / decrease (-) in provisions

 

 

 

- 37.7

 

- 120.6

Increase (+) / decrease (-) in liabilities (excl. financial liabilities)

 

 

 

- 2,157.4

 

- 1,984.6

Cash inflow / cash outflow from operating activities

 

(21)

 

- 1,612.5

 

- 1,670.9

Payments received from disposals of property, plant and equipment and intangible assets

 

 

 

47.2

 

9.9

Payments received/made from disposals of consolidated companies
(less disposals of cash and cash equivalents due to divestments)

 

 

 

44.1

 

- 0.7

Payments received/made from disposals of other non-current assets

 

 

 

58.3

 

72.8

Payments made for investments in property, plant and equipment and intangible assets

 

 

 

- 192.9

 

- 228.6

Payments received from for investments in consolidated companies
(less cash and cash equivalents received due to acquisitions)

 

 

 

2.9

 

-

Payments made for investments in other non-current assets

 

 

 

- 35.9

 

- 0.9

Cash inflow / cash outflow from investing activities

 

(21)

 

- 76.2

 

- 147.6

Dividend payments

 

 

 

 

 

 

Coupon on silent participation (dividends)

 

 

 

-

 

- 16.8

subsidiaries to non-controlling interest

 

 

 

- 76.0

 

-

Payments received from the raising of financial liabilities

 

 

 

1,720.6

 

1,984.3

Transaction costs related to loans and borrowings

 

 

 

- 0.4

 

-

Payments made for redemption of loans and financial liabilities

 

 

 

- 23.2

 

- 47.7

Payments made for principal of lease liabilities

 

 

 

- 169.0

 

- 162.8

Interest paid

 

 

 

- 102.2

 

- 122.3

Cash inflow / cash outflow from financing activities

 

(21)

 

1,349.8

 

1,634.7

Net change in cash and cash equivalents

 

 

 

- 338.9

 

- 183.7

 

 

 

 

 

 

 

Development of cash and cash equivalents

 

(21)

 

 

 

 

Cash and cash equivalents at beginning of period

 

 

 

2,060.5

 

1,736.9

Change in cash and cash equivalents due to exchange rate fluctuations

 

 

 

- 6.8

 

- 10.6

Net change in cash and cash equivalents

 

 

 

- 338.9

 

- 183.7

Cash and cash equivalents at end of period

 

 

 

1,714.8

 

1,542.7

 

 

Notes

General

The TUI Group and its major subsidiaries and shareholdings operate in tourism. TUI AG, based in Karl-Wiechert-Allee 23, 30625 Hanover, Germany, is the TUI Group’s parent company and a listed corporation under German law. The Company is registered in the commercial registers of the district courts of Berlin-Charlottenburg (HRB 321) and Hanover (HRB 6580), Germany. The shares in TUI AG are traded on the London Stock Exchange and the Hanover and Frankfurt Stock Exchanges. In this document, the term “TUI Group” represents the consolidated group of TUI AG and its direct and indirect investments. Additionally, the unaudited condensed consolidated interim financial statements of TUI AG are referred to as “Interim Financial Statements”, the unaudited condensed consolidated income statement of TUI AG is referred to as “income statement”, the unaudited condensed consolidated statement of financial position of TUI AG is referred to as “statement of financial position”, the unaudited condensed consolidated statement of comprehensive income of TUI AG is referred to as “statement of comprehensive income” and the unaudited condensed consolidated statement of changes in equity of TUI AG is referred to as “statement of changes in equity”.

 

The Interim Financial Statements cover the period from 1 October 2023 to 31 December 2023. The Interim Financial Statements are prepared in euros. Unless stated otherwise, all amounts are stated in million euros (€m). TUI Group’s results generally also reflect the significant seasonal swing in tourism between the winter and summer travel months.

 

The Interim Financial Statements were approved for publication by the Executive Board of TUI AG on 12 February 2024.

 

Accounting principles

Declaration of compliance

The consolidated interim financial report for the period ended 31 December 2023 comprise the Interim Financial Statements and the Interim Management Report in accordance with section 115 of the German Securities Trading Act (WpHG).

 

The Interim Financial Statements were prepared in conformity with the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB) and the relevant interpretations of the IFRS Interpretation Committee (IFRS IC) for interim financial reporting applicable in the European Union.

 

In accordance with IAS 34, the Interim Financial Statements are published in a condensed form compared with the consolidated annual financial statements and should therefore be read in combination with TUI Group’s consolidated financial statements for financial year 2023. The Interim Financial Statements were reviewed by the Group’s auditor.

 

Going concern reporting in accordance with the UK Corporate Governance Code

The TUI Group covers its day-to-day working capital requirements through cash on hand, balances with and borrowings from banks. TUI Group's net debt (financial debt plus lease liabilities less cash and cash equivalents and less short-term interest-bearing cash investments) as of 31 December 2023 was €4.0bn (as at 30 September 2023 €2.1bn).

 

Net debt

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

 

31 Dec 2023

 

30 Sep 2023

 

Var. %

Financial debt

 

2,988.8

 

1,297.0

 

+ 130.4

Lease liabilities

 

2,789.1

 

2,918.1

 

- 4.4

Cash and cash equivalents

 

1,714.8

 

2,060.3

 

- 16.8

Short-term interest-bearing investments

 

79.8

 

48.6

 

+ 64.2

Net debt

 

3,983.3

 

2,106.2

 

+ 89.1

  

As at 31 December 2023, TUI Group’s revolving credit facilities totalled €2.7bn, they comprised the following

 

  • €1.64bn credit line from 19 private banks (incl. €190m guarantee line)
  • €1.05bn KfW credit line.

 

The syndicated credit line with the 19 banks (€1.64bn), including the credit line with KfW (€1.05bn), together referred to as the “RCF”, will mature in July 2026. The RCF of TUI AG is subject to compliance with certain financial targets (covenants) for debt coverage and interest coverage, the review of which is carried out on the basis of the last four reported quarters at the end of the financial year or the half-year of a financial year.

 

Furthermore, bilateral credit lines of €50m each were agreed with four banks in December 2023; these credit lines have been drawn to €100m at 31 December 2023.

 

Cash drawdowns from the €1.64bn credit line from private banks amounted to €1.44bn as at 31 December 2023, while the volume of guarantees issued under the guarantee line was €126.7m. The KfW credit line, which amounts to €1.05bn, had not been utilised as at 31 December 2023. It is still not expected to be utilised and merely serves as a buffer. The aim is to return this credit line quickly.

 

In the view of the Executive Board, the TUI Group currently has and will continue to have sufficient funds, resulting both from borrowings and from operating cash flows, to meet its payment obligations and to continue as a going concern in the foreseeable future. The Executive Board bases this assessment on the forecasts for future operating cash flows, which will show cash surpluses from the second half of the year in particular, in line with TUI's seasonal business. The credit facilities described above are also available. Therefore, as at 31 December 2023, the Board does not identify any material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern.

 

The Board does not foresee risks that may jeopardise the Group's ability to continue as a going concern and does not believe that compliance with the financial covenants will be at risk as at 31 March 2024 and 30 September 2024.

 

In accordance with Regulation 30 of the UK Corporate Governance Code, the Board confirms that, in its opinion, it is appropriate to prepare the consolidated interim financial statements on a going concern basis.

 

Accounting and measurement methods

The preparation of the Interim Financial Statements requires management to make estimates and judgements that affect the reported values of assets, liabilities and contingent liabilities at the balance sheet date and the reported values of revenues and expenses during the reporting period.

 

Both the recent development of the business and current trading for the summer programme have confirmed the business performance guidance provided by TUI at the end of financial year 2023. Accordingly TUI does not see any indication that the Group’s assets may generally be impaired.

 

The accounting and measurement methods adopted in the preparation of the Interim Financial Statements as at 31 December 2023 are materially consistent with those followed in preparing the annual consolidated financial statements for the financial year ended 30 September 2023, except for the initial application of new or amended standards, as outlined below.

 

The income taxes were recorded based on the best estimate of the weighted average tax rate that is expected for the whole financial year.

Newly applied standards

Since the beginning of financial year 2024, TUI Group has initially applied the following standards, amended by the IASB and endorsed by the EU, on a mandatory basis:

 

Newly applied standards in financial year 2024

 

 

 

 

 

 

 

Standard

 

Applicable from

 

Amendments

 

Impact on financial statements

IFRS 17
Insurance Contracts

 

1 Jan 2023

 

IFRS 17 establishes the principles for the accounting for insurance contracts and replaces IFRS 4. The scope of IFRS 17 includes insurance contracts, reinsurance contracts and investment contracts with discretionary profit participation.

 

No material impacts.

Amendments to
IFRS 17
Initial Application of IFRS 17 and IFRS 9 - Comparative Information

 

1 Jan 2023

 

The amendment addresses implementation challenges in the presentation of comparative information that were identified after IFRS 17 was published.

 

No impacts.

Amendments to
IAS 1
Disclosure of Accounting Policies

 

1 Jan 2023

 

The amendments to IAS 1 and IFRS Practice Statement 2 are to help preparers in deciding which accounting and measurement methods to disclose in their financial statements. The amendments require entities to disclose their material accounting and measurement policy information instead of their significant accounting and measurement policies.

 

No material impacts.

Amendments to
IAS 8
Definition of Accounting Estimates

 

1 Jan 2023

 

The amendments to IAS 8 are to help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates is replaced with a new definition of accounting estimates. It is clarified that a change in an accounting estimate that results from new information or new developments is not the correction of an error.

 

No material impacts.

Amendments to
IAS 12
International Tax Reform - Pillar Two Model Rules

 

Immediately or, respectively,
1 Jan 2023

 

The amendments to IAS 12 introduce a temporary recognition exception for the accounting of deferred taxes as part of the implementation of the global minimum taxation (so-called 'Pillar Two' regulations of the OECD). Following the endorsement of the amendments by the European Union TUI had already applied for that exception in the financial year 2023. In financial year 2024 TUI adopts for the first time the new disclosure requirements, which are intended to help users to better understand the impacts that the reform will have at the company, in particular before the country-specific laws to implement the minimum taxation become effective.

 

No material impacts.

Amendments to
IAS 12  
Deferred tax related to Assets and Liabilities arising from a Single Transaction

 

1 Jan 2023

 

The amendments clarify that deferred tax assets and liabilities have to be formed when a transaction gives rise to equal amounts of deductible and taxable temporary differences at the same time. The initial recognition exemption, according to which deferred tax assets or liabilities are not recognised on initial recognition of an asset or a liability, does not apply to transactions of this type.

 

No material impacts.

  

 

 

Group of consolidated companies

The Interim Financial Statements include all material subsidiaries over which TUI AG has control. Control requires TUI AG to have decision-making power over the relevant activities, be exposed to variable returns or have entitlements regarding the returns, and can affect the level of those variable returns through its decision-making power.

 

The Interim Financial Statements as of 31 December 2023 comprised a total of 262 subsidiaries of TUI AG.

 

Development of the group of consolidated companies*and the Group companies measured at equity

 

 

 

 

 

 

 

 

 

 

Consolidated              subsidiaries

 

Associates

 

Joint ventures

Number at 30 Sep 2023

 

266

 

20

 

27

Additions

 

1

 

-

 

1

Incorporation

 

1

 

-

 

-

Acquisition

 

-

 

-

 

1

Disposals

 

6

 

1

 

1

Liquidation

 

2

 

-

 

-

Sale

 

1

 

1

 

1

Merger

 

3

 

-

 

-

Change in ownership stake**

 

1

 

-

 

- 1

Number at 31 Dec 2023

 

262

 

19

 

26

* excl. TUI AG
** Addition 1 / disposal -1
 

  

Acquisitions – Divestments

Acquisitions in the period under review

 

A 50 % stake in TRAVELStar GmbH, a travel agency company based in Hanover, was acquired by way of a purchase agreement dated 29 August 2023 and effective as of 19 October 2023. The consideration determined in the framework of a purchase price allocation totals €2.3m and relates in full to purchase price payments offset from the sale of the stake in Raiffeisen-Tours RT-Reisen GmbH. With the acquisition of the shares in TRAVELStar GmbH, the 50 % stake previously held by TUI Group was increased to 100 %. The interest already held at the date of acquisition, carried as a joint venture accounted for using the equity method, was remeasured to fair value through profit or loss in the framework of the transitional consolidation (€2.3m). The transaction resulted in a gain of €0.4m, carried in Other income. In the period under review, the impact on revenues and earnings was insignificant.

 

Condensed statement of financial position of TRAVELStar GmbH as at the date of acquisition

 

 

 

€ million

 

 

Assets

 

7.0

Other intangible assets

 

0.7

Inventories

 

0.1

Trade and other receivables

 

1.2

Other current assets

 

2.1

Cash and cash equivalents

 

2.9

 

 

 

Equity and liabilities

 

7.0

Current provisions

 

0.2

Deferred tax liabilities

 

0.2

Other liabilities

 

2.1

Equity

 

4.5

 

No companies were acquired after the balance sheet date.

 

Divestments

Three companies were divested in the first three months of financial year 2024.

 

The shares in the joint venture WOT Hotels Adriatic Asset Company d.o.o., a company accounted for using the equity method, were sold by way of an agreement dated 30 August 2023 and effective as of 20 October 2023. The purchase price totals €12.0m and corresponds to the carrying amount of the equity method investment at the divestment date. The purchase price was paid on 10 November 2023. The loss on disposal from this transaction amounts to €0.1m and is carried in Other expenses.

The shares in the associated company Raiffeisen-Tours RT-Reisen GmbH, accounted for using the equity method, were sold by way of a purchase agreement dated 29 August 2023 and effective as of 19 October 2023. The consideration determined in the framework of a purchase price allocation amounts to €3.1m and corresponds to the carrying amount of the equity method investment at the divestment date. The payment was made on 30 October 2023. The divestment of the company resulted in the disposal of goodwill of the Central Region cash-generating unit totalling €1.2m. A loss on disposal of €1.2m was realised from this transaction and is carried in Other expenses.

 

On 31 March 2023, an agreement was signed with TUI Global Hospitality Fund S.C.S. to sell Club Hotel CV, S.A. (Robinson Club Cabo Verde), consolidated in the Hotels & Resorts segment. The divestment was completed on 31 October 2023. The consideration amounts to €45.6m. Of this total, €44.8m is attributable to the settlement of intra-Group loans. The payment was made on 31 October 2023. The divestment of the company resulted in the disposal of goodwill totalling €2.5m of the Robinson cash-generating unit. A gain on disposal of €1.0m was generated from this transaction and is carried in Other income.

 

 

Condensed balance sheet of 'Robinson Club Cabo Verde' as at 31 Oct 2023

 

 

 

€ million

 

 

Assets

 

 

Property, plant and equipment and intangible assets

 

41.0

Trade receivables

 

0.8

Other current assets

 

0.4

Cash and cash equivalents

 

1.5

 

 

43.7

 

 

 

€ million

 

 

Provisions and liabilities

 

 

Intra-group financial liabilities

 

44.8

Trade payables

 

1.1

Touristic advance payments received

 

0.2

Other current liabilities

 

0.3

 

 

46.4

 

 

 

No companies were divested after the balance sheet date.

 

 

Notes to the unaudited condensed consolidated Income Statement

In the first three months of financial year 2024, TUI Group's revenue was significantly higher than in Q1 2023, due to a year-on-year increase in business volume and higher average prices, in particular in Markets & Airlines. TUI Group’s results generally also reflect the significant seasonal swing in tourism between the winter and summer travel months.

 

  1. Revenue

In the first three months of the financial year 2024, consolidated revenue increased by €0.6bn year-on-year to €4.3bn.

 

External revenue allocated by destinations for the period from 1 Oct 2023 to 31 Dec 2023*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

 

Spain (incl. Canary Islands)

 

Other European destinations

 

Caribbean, Mexico, USA & Canada

 

North Africa & Turkey

 

Rest of Africa, Ind. Ocean, Asia

 

Other countries

 

Q1 2024 Revenues from contracts with customers

 

Other

 

Q1 2024 Total

Hotels & Resorts

 

104.6

 

12.8

 

67.7

 

14.1

 

52.5

 

-

 

251.7

 

-

 

251.7

Cruises

 

54.0

 

21.3

 

76.6

 

-

 

14.9

 

-

 

166.8

 

-

 

166.8

TUI Musement

 

25.4

 

58.1

 

37.5

 

11.6

 

43.6

 

18.7

 

194.9

 

-

 

194.9

Holiday experiences

 

184.0

 

92.2

 

181.8

 

25.7

 

111.0

 

18.7

 

613.4

 

-

 

613.4

Northern Region

 

463.9

 

262.9

 

303.8

 

189.4

 

213.8

 

5.7

 

1,439.5

 

1.9

 

1,441.5

Central Region

 

517.2

 

313.3

 

106.7

 

432.0

 

262.6

 

1.7

 

1,633.5

 

-

 

1,633.5

Western Region