RE: Stellar results14 Aug 2024 07:13
Summary
TUI delivered another record-breaking quarterly performance, achieving highest ever Q3 revenues of
€5.8bn and a significant improvement in Q3 underlying EBIT across all businesses, increasing €62.4m to
€231.9m overall1
. Based on the record 9M underlying EBIT up €275.0m to €49.2m1
, we are pleased to
reconfirm our FY24 guidance to increase our underlying EBIT by at least 25%.
• Record Q3 revenue and the eighth consecutive quarter with double digit underlying EBIT growth, as we
continue to transform the business and deliver on our promise to grow profitably quarter-after-quarter.
• Q3 Group revenue of €5.8bn outperforming the prior year by +9% (Q2 2023: €5.3bn) supported by higher
volumes at improved prices and rates. This once again underlines resilient customer demand and the
popularity of our product portfolio.
• All business segments contributed to a significant improvement in underlying EBIT by €62.4m to €231.9m.
On a segmental level:
o Hotels & Resorts again recorded a record1 performance with underlying EBIT up 16.3%,
reflecting higher bed nights, improved occupancies and increased rates across our key brands.
o Cruises improved underlying EBIT by 42.7%, driven by higher occupancies and rates, highlighting
the strength of demand for the product. This was despite the cancellation or rerouting of some
TUI Cruises and Marella itineraries in particular at the beginning of the quarter.
o TUI Musement saw underlying EBIT improve by 48.2%, supported by higher volumes across its
product range and benefitting from further growth of its own portfolio of experiences.
o In Markets & Airlines more than doubled underlying EBIT to €16.5m. Customer demand
remained resilient generating higher volumes at improved prices which helped to offset increased
input costs across the regions.
• During the quarter 5.8m customers preferred to travel with us, an increase of +4%. Average load factor
nudged up 1%pt to 94%.
• Our net debt position improved slightly by €42.1m to €2.1bn at 30 June 2024 (30 June 2023: €2.2bn)
mainly driven by a positive free cash flow.
• In July we took the final step to conclude our refinancing with the successful placement of €487m senior
unsecured convertible bonds due 2031. The funds have been used to buy back €472m of the existing
convertible bond. This constitutes the final step towards the full refinancing of the undrawn KfW credit line
reducing it from the current € 550 million to € 214 million per end of July, with the remainder to be handed
back in the first half of calendar year 2025. At the same time, we have been able to extend the maturity
profile and will be able to further reduce our interest costs significantly.
• Markets & Airlines2 bookings taken for Summer 2024 have strengthened since our last update in May,
supported by accelerated momentum in recent weeks at robust prices. Following the sale of 88% of t
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