Consolidated income statement
| € million | Q1 2009 | Q1 20081) restated | Var. % | |
|---|---|---|---|---|
| Turnover | 3,082.9 | 3,630.8 | - 15.1 | |
| Cost of sales | 3,164.5 | 3,567.7 | - 11.3 | |
| Gross profit/loss | - 81.6 | 63.1 | n/a | |
| Administrative expenses | 326.2 | 377.2 | - 13.5 | |
| Other income/other expenses | + 5.0 | + 17.6 | - 71.6 | |
| Impairments of goodwill | – | – | n/a | |
| Financial result | - 63.1 | - 93.1 | + 32.2 | |
| Financial income | 40.1 | 8.5 | + 371.8 | |
| Financial expenses | 103.2 | 101.6 | + 1.6 | |
| Share of results of joint ventures and associates | + 3.8 | + 7.6 | - 50.0 | |
| Earnings before taxes on income | - 462.1 | - 382.0 | - 21.0 | |
| Reconciliation to underlying earnings: | ||||
| Earnings before taxes on income | - 462.1 | - 382.0 | - 21.0 | |
| Interest result and earnings from the valuation of interest hedges | 62.8 | 82.9 | - 24.2 | |
| Impairments of goodwill | – | – | n/a | |
| EBITA from continuing operations | - 399.3 | - 299.1 | - 33.5 | |
| Adjustments | ||||
| Gains on disposal | – | – | ||
| Restructuring | + 27.5 | + 27.1 | ||
| Purchase price allocation | + 10.5 | + 42.6 | ||
| Other one-off items | + 37.1 | + 15.7 | ||
| Underlying EBITA from continuing operations | - 324.2 | - 213.7 | - 51.7 | |
| Earnings before taxes on income | - 462.1 | - 382.0 | - 21.0 | |
| Taxes on income | - 85.0 | - 114.7 | + 25.9 | |
| Result from continuing operations | - 377.1 | - 267.3 | - 41.1 | |
| Result from discontinued operation | + 791.6 | - 11.5 | n/a | |
| Group profit/loss | 414.5 | - 278.8 | n/a | |
| Group profit/loss attributable to shareholders of TUI AG | 553.1 | - 167.2 | n/a | |
| Group profit/loss attributable to minority interests | - 138.6 | - 111.6 | - 24.2 | |
| Group profit/loss | 414.5 | - 278.8 | n/a | |
| Basic earnings per share | in € | 2.18 | - 0.69 | n/a |
| Diluted earnings per share | in € | 2.18 | - 0.69 | n/a |
1) Adjustments resulting from the introduction of IFRIC 13 and the finalisation of purchase price allocations by 31 December 2008
As container shipping has been classified a discontinued operation according to IFRS 5 since March 2008, earnings by this sector are now shown under the item ‘Result from discontinued operation’ and not under continuing operations. The year-on-year development of consolidated earnings was primarily characterised by the sale of container shipping in the first quarter of 2009. Overall, earnings by continuing operations are characterised by the seasonality of the tourism business, as a result of which positive earnings are primarily generated in the second and third quarters of any one year.
Turnover and cost of sales
Turnover comprised the turnover of the continuing operations, i.e. tourism and central operations. In the first quarter of 2009, turnover decreased to €3.1bn year-on-year, down 15%. The decline was mainly driven by the year-on-year weakening of the exchange rate of the British pound and the fall in TUI Travel’s business volume.
Apart from capacity reductions, the late Easter also contributed to the decline in volume in the first quarter in TUI Travel. Cost of sales also decreased due to the lower business volume and the weak British pound as well as cost containments which resulted from the integration measures. A detailed breakdown of turnover and the development of turnover is presented in the section ‘Consolidated turnover and earnings’.
Gross profit/loss
Gross profit/loss as the balance of turnover and cost of sales decreased year-on-year to €-82m in the first quarter of 2009 (previous year: €63m).
Administrative expenses
Administrative expenses comprised expenses not directly allocable to the turnover transactions, such as expenses for general management functions. In the first quarter, they totalled €326m, down 14% year-on-year. The decrease in administrative costs resulted from the weakness of the British pound as well as synergy effects caused by the integration of TUI’s former tourism division with First Choice.
Other income/other expenses
Other income and other expenses primarily comprised profits or losses from the sale of fixed asset items. At €5m, the balance of income and expenses in the first quarter was 72% down on the corresponding figure for 2008, which had been higher due to income from sale-and-lease-back transactions.
Impairments of goodwill
Impairments of goodwill In the first quarter of 2009, no impairments of goodwill were effected.
Financial result
The financial result comprised the interest result and the net result from marketable securities. At €-63m, the financial result grew 32% year-on-year in the first quarter of 2009 and comprised financial income of €40m (previous year: €9m), which rose substantially year-on-year, and financial expenses of €103m (previous year: €102m), which were up by 1%.
Share of results of joint ventures and associates
The share of results of joint ventures and associates comprised the share in net profit for the year of the associated companies and joint ventures as well as impairments of the goodwill of these companies. The decline of €4m in the first quarter of 2009 resulted from the year-on-year decline in profit contributions by the joint ventures and associates in TUI Travel and TUI Hotels & Resorts.
Underlying EBITA from continuing operations
In the first quarter of 2009, underlying earnings by the continuing operations totalled €-324m, down 52% year-on-year. EBITA was adjusted for gains on disposals, restructuring expenses, purchase price allocations and one-off items. The adjustments are outlined in detail in the section on ‘Consolidated turnover and earnings’ and in the comments on the divisions.
Taxes on income
Taxes on income comprised taxes on profits from the business activities of the continuing operations. In the first quarter they totalled €-85m, following €-115m in 2008.
Result from discontinued operation
The result from the discontinued operation comprised the reclassified container shipping operations. It totalled €792m, following €-12m in the first quarter of 2008. The substantial rise mainly resulted from the book profit of €990m realised in the quarter under review from the sale of the container shipping. In accordance with IFRS 5, scheduled depreciation of fixed assets has had to be suspended since 31 March 2008. Likewise, at equity measurement of the container shipping participations has had to be discontinued. This resulted in a €66m rise in earnings in the current quarter. A detailed breakdown is provided in the notes in the section ‘Result from discontinued operation’.
Group profit/loss
Group profit/loss rose substantially and accounted for €415m in the first quarter (previous year: Group profit/loss of €-279m).
Minority interests
Minority interests in Group profit/loss totalled €-139m for the first quarter of 2009. They related to the outside shareholders of TUI Travel PLC and companies in the TUI Hotels & Resorts sector.
Earnings per share
After deduction of minority interests, TUI AG shareholders accounted for €553m (previous year: €-167m) of Group profit/loss in the first quarter of 2009. As a result, basic earnings per share amounted to €2.18 (previous year: €-0.69) in the first quarter.
Performance indicators
Key figures of the profit and loss statement of the continuing operations
| € million | Q1 2009 | Q1 2008 | Var. % |
|---|---|---|---|
| Earnings before interest, taxes on income, depreciation, impairment and rent (EBITDAR) | - 91.8 | 9.6 | n/a |
| Operating rental expenses | 209.0 | 174.9 | + 19.5 |
| Earnings before interest, taxes on income, depreciation and impairment (EBITDA) | - 300.8 | - 165.3 | - 82.0 |
| Depreciation/amortisation less reversals of depreciation1) | 98.5 | 133.8 | - 26.4 |
| Earnings before interest, taxes on income and impairment of goodwill (EBITA) | - 399.3 | - 299.1 | - 33.5 |
| Impairment of goodwill | – | – | n/a |
| Earnings before interest and taxes on income (EBIT) | - 399.3 | - 299.1 | - 33.5 |
| Interest result | - 62.8 | - 82.9 | + 24.2 |
| Earnings before taxes on income (EBT) | - 462.1 | - 382.0 | - 21.0 |
1) on property, plant and equipment, intangible assets, financial and other assets
Operating rental expenses
Operating rental expenses of the continuing operations amounted to €209m (previous year: €175m) in the first quarter. The rise in rental and leasing expenses was attributable to the strategic realignment of flight operations (sale-and-lease-back agreements) in the TUI Travel Group. This increase was partly offset by capacity reductions in the flight business as well as currency effects caused by the development of the British pound.
Interest result
The interest result of the continuing operations totalled €-63m (previous year: €-83m) in the first quarter of 2009.