Following the introduction of a nine-month short financial year in 2009, the TUI Group now reports about the period from 1 October of any one year until 30 September of the subsequent year. The quarter Q2 2009/10 and the six-month period H1 2009/10 are thus presented alongside the reporting periods from January to March 2009 and from October 2008 to March 2009, respectively.
Following the completion of the sale of Container Shipping, the 43.33% stake in ‘Albert Ballin’ Joint Venture GmbH & Co. KG has been measured at equity in TUI’s consolidated financial statements since April 2009. In line with their participating nature, the proportionate at equity earnings of the stake in Container Shipping to be included in consolidated earnings as of third quarter 2008/09 are not included in the TUI Group’s operating performance indicator EBITA. Accordingly, the comments provided below will focus on the development of business operations in Tourism and Central Operations (Continuing Operations).
Information about the development of business operations in Container Shipping in the second quarter of 2009/10 is presented here.
Development of turnover
Divisional turnover
| € million | Q2 2009/10 | Q2 2008/09 | Var. % | H1 2009/10 | H1 2008/09 | Var. % |
| Tourism | 2,864.3 | 3,064.2 | - 6.5 | 5,796.8 | 6,513.8 | - 11.0 |
| TUI Travel | 2,707.5 | 2,914.4 | - 7.1 | 5,519.2 | 6,238.9 | - 11.5 |
| TUI Hotels & Resorts | 97.1 | 91.8 | + 5.8 | 176.9 | 172.4 | + 2.6 |
| Cruises | 59.7 | 58.0 | + 2.9 | 100.7 | 102.5 | - 1.8 |
| Central Operations | 14.5 | 14.7 | - 1.4 | 30.1 | 35.7 | - 15.7 |
| Continuing Operations | 2,878.8 | 3,078.9 | - 6.5 | 5,826.9 | 6,549.5 | - 11.0 |
| Discontinued Operations | 4.2 | 1,122.9 | - 99.6 | 11.8 | 2,721.2 | - 99.6 |
| Consolidation | – | – | n/a | – | - 42.9 | n/a |
| Divisional turnover | 2,883.0 | 4,201.8 | - 31.4 | 5,838.7 | 9,227.8 | - 36.7 |
Divisional turnover
| € million | Q2 2009/10 | Q2 2008/09 | Var. % | H1 2009/10 | H1 2008/09 | Var. % |
| Tourism | 2,864.3 | 3,064.2 | - 6.5 | 5,796.8 | 6,513.8 | - 11.0 |
| TUI Travel | 2,707.5 | 2,914.4 | - 7.1 | 5,519.2 | 6,238.9 | - 11.5 |
| TUI Hotels & Resorts | 97.1 | 91.8 | + 5.8 | 176.9 | 172.4 | + 2.6 |
| Cruises | 59.7 | 58.0 | + 2.9 | 100.7 | 102.5 | - 1.8 |
| Central Operations | 14.5 | 14.7 | - 1.4 | 30.1 | 35.7 | - 15.7 |
| Continuing Operations | 2,878.8 | 3,078.9 | - 6.5 | 5,826.9 | 6,549.5 | - 11.0 |
| Discontinued Operations | 4.2 | 1,122.9 | - 99.6 | 11.8 | 2,721.2 | - 99.6 |
| Consolidation | – | – | n/a | – | - 42.9 | n/a |
| Divisional turnover | 2,883.0 | 4,201.8 | - 31.4 | 5,838.7 | 9,227.8 | - 36.7 |
Continuing Operations
In the second quarter of 2009/10, turnover by the Continuing Operations was €2.9bn, down 7% year-on-year. The decline in turnover was above all attributable to the year-on-year decrease in customer volumes in TUI Travel. On the other hand, turnover benefited from the 2% rise in the exchange rate of Sterling against the Euro, as a result of which the British tour operators in Tourism recorded slightly higher turnover on a Euro basis. Cumulative turnover for the first half of 2009/10 totalled €5.8b, down 11% year-on-year. However, the decline in turnover driven by the economic environment improved considerably versus the first quarter of 2009/10. Bookings, which already started to recover towards the end of the first quarter of 2009/10, thus continued to consolidate in the quarter under review.
Discontinued Operations
Following the fundamental decision taken in 2009 to divest the Magic Life Group, its turnover was carried under Discontinued Operations. In the first half of the previous year, this item still included turnover by Container Shipping. A year-on-year comparison of cumulative turnover and earnings is therefore of limited value.
Development of earnings
Underlying divisional EBITA
| € million | Q2 2009/10 | Q2 2008/09 | Var. % | H1 2009/10 | H1 2008/09 | Var. % |
| Tourism | - 217.2 | - 263.7 | + 17.6 | - 346.0 | - 307.3 | - 12.6 |
| TUI Travel | - 245.1 | - 289.2 | + 15.2 | - 372.6 | - 355.5 | - 4.8 |
| TUI Hotels & Resorts | 25.7 | 25.6 | + 0.4 | 30.7 | 52.7 | - 41.7 |
| Cruises | 2.2 | - 0.1 | n/a | - 4.1 | - 4.5 | + 8.9 |
| Central Operations | - 11.4 | - 10.1 | - 12.9 | - 20.3 | - 64.9 | + 68.7 |
| All other segments | - 11.4 | - 10.1 | - 12.9 | - 20.3 | - 64.9 | + 68.7 |
| Consolidation | – | – | n/a | – | – | n/a |
| Continuing Operations | - 228.6 | - 273.8 | + 16.5 | - 366.3 | - 372.2 | + 1.6 |
| Discontinued Operations | - 12.9 | - 234.6 | + 94.5 | - 23.8 | - 256.0 | + 90.7 |
| Underlying divisional earnings (EBITA) | - 241.5 | - 508.4 | + 52.5 | - 390.1 | - 628.2 | + 37.9 |
Underlying divisional EBITA
| € million | Q2 2009/10 | Q2 2008/09 | Var. % | H1 2009/10 | H1 2008/09 | Var. % |
| Tourism | - 217.2 | - 263.7 | + 17.6 | - 346.0 | - 307.3 | - 12.6 |
| TUI Travel | - 245.1 | - 289.2 | + 15.2 | - 372.6 | - 355.5 | - 4.8 |
| TUI Hotels & Resorts | 25.7 | 25.6 | + 0.4 | 30.7 | 52.7 | - 41.7 |
| Cruises | 2.2 | - 0.1 | n/a | - 4.1 | - 4.5 | + 8.9 |
| Central Operations | - 11.4 | - 10.1 | - 12.9 | - 20.3 | - 64.9 | + 68.7 |
| All other segments | - 11.4 | - 10.1 | - 12.9 | - 20.3 | - 64.9 | + 68.7 |
| Consolidation | – | – | n/a | – | – | n/a |
| Continuing Operations | - 228.6 | - 273.8 | + 16.5 | - 366.3 | - 372.2 | + 1.6 |
| Discontinued Operations | - 12.9 | - 234.6 | + 94.5 | - 23.8 | - 256.0 | + 90.7 |
| Underlying divisional earnings (EBITA) | - 241.5 | - 508.4 | + 52.5 | - 390.1 | - 628.2 | + 37.9 |
Divisional EBITA
| € million | Q2 2009/10 | Q2 2008/09 | Var. % | H1 2009/10 | H1 2008/09 | Var. % |
| Tourism | - 240.9 | - 338.8 | + 28.9 | - 405.8 | - 388.9 | - 4.3 |
| TUI Travel | - 268.8 | - 364.3 | + 26.2 | - 432.4 | - 433.3 | + 0.2 |
| TUI Hotels & Resorts | 25.7 | 25.6 | + 0.4 | 30.7 | 48.9 | - 37.2 |
| Cruises | 2.2 | - 0.1 | n/a | - 4.1 | - 4.5 | + 8.9 |
| Central Operations | - 11.4 | - 10.1 | - 12.9 | - 20.3 | - 63.1 | + 67.8 |
| All other segments | - 11.4 | - 10.1 | - 12.9 | - 20.3 | - 63.1 | + 67.8 |
| Consolidation | – | – | n/a | – | – | n/a |
| Continuing Operations | - 252.3 | - 348.9 | + 27.7 | - 426.1 | - 452.0 | + 5.7 |
| Discontinued Operations | - 22.7 | 889.4 | n/a | - 33.6 | 851.7 | n/a |
| Divisional earnings (EBITA) | - 275.0 | 540.5 | n/a | - 459.7 | 399.7 | n/a |
Divisional EBITA
| € million | Q2 2009/10 | Q2 2008/09 | Var. % | H1 2009/10 | H1 2008/09 | Var. % |
| Tourism | - 240.9 | - 338.8 | + 28.9 | - 405.8 | - 388.9 | - 4.3 |
| TUI Travel | - 268.8 | - 364.3 | + 26.2 | - 432.4 | - 433.3 | + 0.2 |
| TUI Hotels & Resorts | 25.7 | 25.6 | + 0.4 | 30.7 | 48.9 | - 37.2 |
| Cruises | 2.2 | - 0.1 | n/a | - 4.1 | - 4.5 | + 8.9 |
| Central Operations | - 11.4 | - 10.1 | - 12.9 | - 20.3 | - 63.1 | + 67.8 |
| All other segments | - 11.4 | - 10.1 | - 12.9 | - 20.3 | - 63.1 | + 67.8 |
| Consolidation | – | – | n/a | – | – | n/a |
| Continuing Operations | - 252.3 | - 348.9 | + 27.7 | - 426.1 | - 452.0 | + 5.7 |
| Discontinued Operations | - 22.7 | 889.4 | n/a | - 33.6 | 851.7 | n/a |
| Divisional earnings (EBITA) | - 275.0 | 540.5 | n/a | - 459.7 | 399.7 | n/a |
Continuing Operations
In the second quarter of 2009/10, underlying earnings by the Continuing Operations Tourism and Central Operations (underlying divisional EBITA) rose by €45m year-on-year to €-229m. The positive development of earnings was largely driven by the development of business in Tourism.
In the second quarter of 2009/10, Tourism posted negative underlying earnings for seasonal reasons; however, earnings rose by €47m year-on-year. This positive development was mainly attributable to the earnings growth of €44m in TUI Travel. At €26m, earnings by TUI Hotels & Resorts were flat versus the previous year. The Cruises sector also reported a gratifying development of business, with earnings up €2m year-on-year.
In the second quarter of 2009/10, underlying earnings by Central Operations totalled €-11m, almost matching the previous year’s level. The earnings enhancement of €45m in the first half of the year was driven by the charges for the measurement of financial instruments included in the previous year’s figures.
Cumulative underlying earnings by the Continuing Operations totalled €-366m for the first half of 2009/10, slightly above the previous year’s level.
Underlying divisional EBITA: Continuing Operations
| € million | Q2 2009/10 | Q2 2008/09 | Var. % | H1 2009/10 | H1 2008/09 | Var. % |
| Divisional EBITA | - 252.3 | - 348.9 | + 27.7 | - 426.1 | - 452.0 | + 5.7 |
| Gains on disposal | - 2.0 | – | | - 2.0 | + 2.0 | |
| Restructuring | + 9.6 | + 25.7 | | + 13.2 | - 0.6 | |
Purchase price allocation
| + 16.3 | + 10.5 | | + 31.9 | + 21.9 | |
| Other one-off items | - 0.2 | + 38.9 | | + 16.7 | + 56.5 | |
| Underlying divisional EBITA | - 228.6 | - 273.8 | + 16.5 | - 366.3 | - 372.2 | +1.6 |
Underlying divisional EBITA: Continuing Operations
| € million | Q2 2009/10 | Q2 2008/09 | Var. % | H1 2009/10 | H1 2008/09 | Var. % |
| Divisional EBITA | - 252.3 | - 348.9 | + 27.7 | - 426.1 | - 452.0 | + 5.7 |
| Gains on disposal | - 2.0 | – | | - 2.0 | + 2.0 | |
| Restructuring | + 9.6 | + 25.7 | | + 13.2 | - 0.6 | |
Purchase price allocation
| + 16.3 | + 10.5 | | + 31.9 | + 21.9 | |
| Other one-off items | - 0.2 | + 38.9 | | + 16.7 | + 56.5 | |
| Underlying divisional EBITA | - 228.6 | - 273.8 | + 16.5 | - 366.3 | - 372.2 | +1.6 |
In the second quarter of 2009/10, the Group’s Continuing Operations had items worth a total of €24m to be adjusted. Reported divisional EBITA by the Continuing Operations accounted for €-252m in the second quarter, up €97m versus the comparative prior year period. In the first half of the year, reported divisional EBITA totalled €-426m, with cumulative adjustments of €60m.
Discontinued Operations
Discontinued Operations comprised the hotel companies of the Magic Life Group. The cumulative figure for the first half of 2008/09 had additionally included the Container Shipping activities, which have meanwhile been sold. The 43.33% stake in Container Shipping taken in the framework of the divestment has been measured at equity and included in the consolidated financial statements since April 2009.
