TUI Group share price: Merged company posts Q1 results

on Feb 10, 2015
Updated: Oct 21, 2019
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TUI Group (LON:TUIJ) has this morning updated investors on its first-quarter performance. Here are the highlights from TUI’s statement with more to follow:

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Chief Executives of TUI Group, Friedrich Joussen and Peter Long, commented:

“We are delighted to announce our first set of results as TUI Group, having delivered 15% improvement in the underlying operating result. This reflects a significant increase in profitability in Hotels & Resorts and Cruises. The Travel result is in line with our expectations. We have continued to grow unique holidays and online bookings across all key source markets and expect to deliver growth in the underlying operating result in the remainder of the year. Following completion of the merger between TUI AG and TUI Travel PLC in December 2014, the integration of our businesses is well underway, with a new Executive Committee in place. Based on this result and our current trading, we remain confident of delivering full year underlying operating profit growth of 10% to 15%1.”

Q1 Results

· Underlying operating loss reduced by €33m to €108m (Q1 2013/14: loss of €141m). This equated to a 15% improvement in the underlying operating result, excluding €16m profit on sale of Riu Waikiki within TUI Hotels & Resorts, and €4m adverse foreign exchange translation.· Travel underlying operating loss of €149m, or €144m at constant currency (Q1 2013/14: €137m) was in line with our expectations. Mainstream operating loss of €114m, or €110m at constant currency (Q1 2013/14: loss of €110m).

· Hotels & Resorts underlying operating profit increased significantly to €51m (Q1 2013/14: €26m). Improved yield performance, with overall occupancy up 3.6 percentage points to 77.6% and revenue per bed up 2.2%.· Cruises delivered underlying operating profit of €2m (Q1 2013/14: loss of €16m), with losses halved in Hapag-Lloyd Kreuzfahrten and growth in TUI Cruises following the successful launch of Mein Schiff 3.
OUTLOOK

The new TUI Group has delivered a good start to the year, with strong growth in profitability in Cruises and TUI Hotels & Resorts. Mainstream performance during the quarter was in line with our expectations, and our strategy, with its focus on unique holidays, direct distribution and leveraging our scale, leaves us well placed to deliver growth in underlying operating profit in the remainder of the year. Our Accommodation Wholesaler business continues to outperform the market, with strong TTV growth in current bookings.

Our post-merger integration is underway and we expect to start delivering synergies in the current financial year. In Mainstream, our strategy is progressing, from growing profitability to profitable top-line growth. In Non-Mainstream, we are evaluating our options to manage these businesses for growth and value and we remain committed to exiting our remaining shareholding in Hapag-Lloyd AG, through either IPO or trade sale. Based on this result and our current trading, we remain confident of delivering full year underlying operating profit growth of 10% to 15%1.
As of 07:06 GMT, Tuesday, 10 February, TUI Group share price is 1,121.00p.

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