Looking good but Mr Mkt will decide24 Sep 2024 07:12
TUI set to deliver a strong FY24 in line with expectations
Positive booking momentum and a strong close to Summer 2024 leave us well positioned to reaffirm our FY24 guidance1 to increase Und. EBIT by at least 25% year-on-year
Markets + Airline remains well ahead with bookings2 up +6% and ASP +3% for Summer 2024
Holiday Experiences continues to perform strongly, delivering in line with our upgraded expectations
Promising start to Winter 2024/25 as consumers continue to prioritise spend for leisure experiences
Bookings in Markets + Airline2 up +7% with ASP +5%, ahead across all our source markets, bolstered by stronger demand for dynamically packaged product
Holiday Experiences with solid start to H1 FY25, supported by asset-right growth strategy including our fleet expansion in TUI Cruises
We have a clear strategy to unlock significant value and remain committed to our mid-term ambitions including generating underlying EBIT growth of c. +7%-10% CAGR
TUI Group FY24 Guidance & Mid-Term Ambitions
FY24 Guidance1 – we continue to trade in line with management expectations and therefore reaffirm our guidance to increase underlying EBIT by at least 25% year-on-year (FY23: €977m)
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. We remain committed to delivering our mid-term ambitions which are as follows:
Generate underlying EBIT growth of c. +7-10% CAGR
Target net leverage3 strongly below 1.0x
Return to a credit rating territory in line with our pre-pandemic rating BB/Ba (S&P/Moody’s)