TUI Group share price in focus as group issues trading update
TUI Group has this morning updated investors on its recent performance. Here are the highlights from Tui’s statement with more to follow:
Chief Executives of TUI Group, Friedrich Joussen and Peter Long, commented:
“Winter 2014/15 is closing out as expected, with our Mainstream programme almost fully sold and higher average selling prices in most source markets. We are pleased with Summer 2015 trading, with continued strong demand for our unique holidays and a significant increase in online bookings. Hotels & Resorts are performing well and Cruise sales continue to grow, with the launch of Mein Schiff 4 this June and improved fleet performance by Hapag-Lloyd Kreuzfahrten. Accommodation Wholesaler is also delivering another year of double-digit TTV growth.
We are continuing to implement our strategy post-merger, and will articulate this in further detail at our Capital Markets Update on 13 May 2015. We are on track to deliver a H1 result ahead of last year on a like-for-like basis1, and remain confident of delivering full year underlying operating profit growth of 10% to 15%2.”
Pleased with Mainstream trading:· Winter 2014/15 closing out as expected, with higher average selling prices in most source markets, up 1% overall.· Pleased with Summer 2015 – bookings up 1% and average selling prices up 1%: Demand for our unique holidays continues to rise, accounting for 74% of Summer bookings to date, up three percentage points on prior year.
o Strong growth in online bookings, up 12% on prior year.
Hotels & Resorts are performing well
· Improved occupancy rates and yield expected to drive growth in underlying EBITA this year.Growth in Cruise bookings driven by launch of Mein Schiff 4; · Strong Cruise bookings performance for Summer 2015 driven by launch of Mein Schiff 4 in June and improved performance by Hapag-Lloyd Kreuzfahrten.
Continued double-digit growth in Accommodation Wholesaler
· Further growth in market-leading Accommodation Wholesaler, with TTV up 27% for Summer 2015.;
· Simplification of capital structure; o Redemption notice given to holders of our two remaining convertible bonds, improving our capital position.o Intention to cancel and repay our €300m hybrid bond with effect from 30 April 2015.· On track to deliver a H1 result ahead of last year on a like-for-like basis1; · Based on current trading, we remain confident of delivering full year underlying operating profit growth of 10% to 15%2; · We look forward to providing an update on our strategy and plans for growth at our Capital Markets Update on 13 May 2015;
As of 07:17 GMT, Wednesday, 25 March, TUI Group share price is 1,114.00p.