Development of turnover by divisions
Turnover by divisions
| € million | Q3 2008 | Q3 2007 | Var. % | 9M 2008 | 9M 2007 | Var. % |
|---|---|---|---|---|---|---|
| Tourism | 6,837.9 | 5,843.9 | + 17.0 | 15,182.8 | 12,163.6 | + 24.8 |
| TUI Travel | 6,644.0 | 5,664.8 | + 17.3 | 14,690.6 | 11,723.7 | + 25.3 |
| TUI Hotels & Resorts | 142.9 | 126.8 | + 12.7 | 336.7 | 301.7 | + 11.6 |
| Cruises | 51.0 | 52.3 | - 2.5 | 155.5 | 138.2 | + 12.5 |
| Central operations | 33.0 | - 8.8*) | n/a | 64.8 | 66.2 | - 2.1 |
| Continuing operations | 6,870.9 | 5,835.1 | + 17.8 | 15,247.6 | 12,229.8 | + 24.7 |
| Container shipping | 1,672.2 | 1,564.5 | + 6.9 | 4,633.5 | 4,460.7 | + 3.9 |
| Discontinued operation | 1,672.2 | 1,564.5 | + 6.9 | 4,633.5 | 4,460.7 | + 3.9 |
| Turnover by divisions | 8,543.1 | 7,399.6 | + 15.5 | 19,881.1 | 16,690.5 | + 19.1 |
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*)According to IFRS 5 due to fluctuation of exchange rates.
Continuing operations
In the third quarter of 2008, turnover by the TUI Group’s continuing operations was 17.8% up year-on-year. Accumulated turnover for the first nine months also grew by 24.7%.
Turnover by tourism rose to € 6.8 billion in the third quarter, up 17.0% year-on-year. This growth in turnover was driven by all tourism segments, with TUI Travel in particular recording a substantial increase due to changes in consolidation. Adjusted for the consolidation of the First Choice activities, which had been included in consolidation in the third quarter of 2007 for the month of September, turnover by TUI Travel declined due to reduced tour operator capacity and weakening of the exchange rate of the British pound sterling against the euro by 4.7% year-on-year. In the first nine months of 2008, turnover was 24.8% up year-on-year. Adjusted for the turnover portion of First Choice, turnover by TUI Travel declined by 3.2%.
Discontinued operation
The discontinued operation, which comprised the reclassified container shipping activities including the interests in container terminals, recorded a 6.9% rise in turnover to € 1.7 billion in the third quarter. In the first nine months of 2008, turnover by the reclassified container shipping operations totalled € 4.6 billion, a 3.9% rise year-on-year. This increase was mainly due to the year-on-year rise in freight rate levels and slight volume growth. On the other hand, turnover was impacted by the 11.7% decline of the US dollar exchange rate against the euro in the third quarter.
Group
Overall, the TUI Group’s turnover by divisions climbed 15.5% year-on-year to € 8.5 billion in the third quarter of 2008. In the first three quarters, it totalled € 19.9 billion, up 19.1% year-on-year.
Development of earnings by divisions
Underlying EBITA by divisions
| € million | Q3 2008 | Q3 2007 | Var. % | 9M 2008 | 9M 2007 | Var. % |
|---|---|---|---|---|---|---|
| Tourism | 795 | 689 | + 15.4 | 660 | 507 | + 30.2 |
| TUI Travel | 689 | 581 | + 18.6 | 520 | 366 | + 42.1 |
| TUI Hotels & Resorts | 101 | 101 | + 0.0 | 129 | 132 | - 2.3 |
| Cruises | 5 | 7 | - 28.6 | 11 | 9 | + 22.2 |
| Central operations | - 22 | 34 | n/a | 0 | 34 | n/a |
| Continuing operations | 773 | 723 | + 6.9 | 660 | 541 | + 22.0 |
| Container shipping | 86 | 107 | - 19.6 | 219 | 76 | + 188.2 |
| Discontinued operation | 86 | 107 | - 19.6 | 219 | 76 | + 188.2 |
| Underlying EBITA by divisions | 859 | 830 | + 3.5 | 879 | 617 | + 42.5 |
EBITA by divisions
| € million | Q3 2008 | Q3 2007 | Var. % | 9M 2008 | 9M 2007 | Var. % |
|---|---|---|---|---|---|---|
| Tourism | 616 | 638 | - 3.4 | 165 | 412 | - 60.0 |
| TUI Travel | 516 | 530 | - 2.6 | 33 | 271 | - 87.8 |
| TUI Hotels & Resorts | 95 | 101 | - 5.9 | 121 | 132 | - 8.3 |
| Cruises | 5 | 7 | - 28.6 | 11 | 9 | + 22.2 |
| Central operations | - 22 | 34 | n/a | 0 | 28 | n/a |
| Continuing operations | 594 | 672 | - 11.6 | 165 | 440 | - 62.5 |
| Container shipping | 66 | 95 | - 30.5 | 156 | 245 | - 36.3 |
| Discontinued operation | 66 | 95 | - 30.5 | 156 | 245 | - 36.3 |
| Earnings by divisions (EBITA) | 660 | 767 | - 14.0 | 321 | 685 | - 53.1 |
Continuing operations
Earnings before adjustment for one-off effects of the continuing operations tourism and central operations (EBITA) declined by € 78 million to € 594 million in the third quarter of 2008. The reasons for the decrease in TUI Travel’s earnings included restructuring costs and other one-off effects, and in particular the weakening of the exchange rate of the British pound sterling against other currencies. Earnings by central operations declined year-on-year due to earnings from the valuation of financial instruments included in earnings in the third quarter of 2007 but not in the current year. Accumulated earnings for the first nine months of the year declined in particular due to integration costs and the charges for the strategic realignment of TUI Travel’s airline activities of € 299 million booked in the second quarter of 2008. Adjusted for the one-off effects, underlying earnings (underlying EBITA by divisions) increased by 6.9% year-on-year to € 773 million in the third quarter and by 22.0% year-on-year to 660 million in the first nine months of the year under review.
Underlying EBITA by division: Tourism
| € million | Q3 2008 | Q3 2007 | Var. % | 9M 2008 | 9M 2007 | Var. % |
|---|---|---|---|---|---|---|
| EBITA by division | 616 | 638 | - 3.4 | 165 | 412 | - 60.0 |
| Gains on disposal | – | – | – | – | ||
| Restructuring | + 94 | + 5 | + 311 | + 10 | ||
| Purchase price allocation | - 7 | + 15 | + 47 | + 15 | ||
| Other one-off items | + 92 | + 31 | + 137 | + 70 | ||
| Underlying EBITA by division | 795 | 689 | + 15.4 | 660 | 507 | + 30.2 |
At € 616 million, earnings by tourism were € 22 million down year-on-year. While all sectors recorded a sound operating performance, this decline was mainly attributable to restructuring costs and other one-off effects as well as the year-on-year weakening of the British pound sterling. On the other hand, an additional profit contribution was recognised due to the full consolidation of First Choice, which had only been included for the month of September in the third quarter of 2007. Earnings in the third quarter of 2008 included one-off effects of € 179 million, of which € 74 million related to the merger between First Choice and TUI’s tourism entities. Earnings in the third quarter of 2007 had comprised one-off effects worth € 51 million, including € 29 million incurred in connection with the merger with First Choice, which had to be eliminated. Adjusted for the one-off effects, underlying earnings grew by 15.4% in the third quarter of 2008 and 30.2% for the first nine months of 2008.
Underlying EBITA by division: Central operations
| € million | Q3 2008 | Q3 2007 | Var. % | 9M 2008 | 9M 2007 | Var. % |
|---|---|---|---|---|---|---|
| EBITA by division | - 22 | 34 | n/a | 0 | 28 | n/a |
| Gains on disposal | – | – | – | – | ||
| Restructuring | – | – | – | + 6 | ||
| Purchase price allocation | – | – | – | – | ||
| Other one-off items | – | – | – | – | ||
| Underlying EBITA by division | - 22 | 34 | n/a | 0 | 34 | n/a |
Underlying earnings by central operations decreased by € 56 million to € - 22 million year-on-year in the third quarter. The decline in earnings was primarily caused by the positive effects of the valuation of hedges included in 2007 figures, while the third quarter of 2008 reported negative effects from corresponding valuations. Accumulated underlying earnings for the first nine months were down by € 34 million year-on-year.
Underlying EBITA by division: Discontinued operation
| € million | Q3 2008 | Q3 2007 | Var. % | 9M 2008 | 9M 2007 | Var. % |
|---|---|---|---|---|---|---|
| EBITA by division | 66 | 95 | - 30.5 | 156 | 245 | - 36.3 |
| Gains on disposal | – | - 8 | – | - 201 | ||
| Restructuring | – | – | + 7 | – | ||
| Purchase price allocation | + 19 | + 20 | + 57 | + 61 | ||
| Other one-off items | + 1 | – | - 1 | - 29 | ||
| Underlying EBITA by division | 86 | 107 | - 19.6 | 219 | 76 | + 188.2 |
Discontinued operation
Earnings by container shipping activities, reclassified to discontinued operation, were € 29 million down year-on-year in the third quarter of 2008. As in previous quarters, expenses for the purchase price allocation totalling € 19 million and one-off effects amounting to € 1 million had to be eliminated in the third quarter. In 2007, netted expenses of € 12 million had to be accounted for. Adjusted for the one-off effects, earnings in the third quarter of 2008 totalled € 86 million for the container shipping operations, a year-on-year decline of € 21 million.
In the first nine months of 2008, earnings stood at € 156 million, down by 36.3% on the earnings posted in 2007, characterised by one-off income from the divestment of the majority interest in Montreal Gateway Terminals and the divestment of the minority interest of Hapag-Lloyd AG in Germanischer Lloyd AG totalling € 201 million. Underyling earnings in the first nine months of 2008 grew by € 143 million year-on-year due to a significant increase in operating earnings.
Underlying EBITA by division: Group
| € million | Q3 2008 | Q3 2007 | Var. % | 9M 2008 | 9M 2007 | Var. % |
|---|---|---|---|---|---|---|
| EBITA by division | 660 | 767 | - 14.0 | 321 | 685 | - 53.1 |
| Gains on disposal | – | - 8 | – | - 201 | ||
| Restructuring | + 94 | + 5 | + 318 | + 16 | ||
| Purchase price allocation | + 12 | + 35 | + 104 | + 76 | ||
| Other one-off items | + 93 | + 31 | + 136 | + 41 | ||
| Underlying EBITA by division | 859 | 830 | + 3.5 | 879 | 617 | + 42.5 |
Group
Total earnings by the TUI Group’s divisions decreased by € 107 million to € 660 million in the third quarter of 2008. Accumulated earnings for the first nine months amounted to € 321 million, a decline of € 364 million against the 2007 reference period, characterised by gains on disposals. Adjusted for one-off effects, earnings accounted for € 859 million (previous year: € 830 million) in the third quarter and € 879 million (previous year: € 617 million) in the first nine months.