Development of turnover
Divisional turnover
| € million | Q1 2009 | Q1 2008 | Var. % |
|---|---|---|---|
| Tourism | 3,068.2 | 3,617.6 | - 15.2 |
| TUI Travel | 2,914.4 | 3,465.7 | - 15.9 |
| TUI Hotels & Resorts | 95.8 | 93.9 | + 2.0 |
| Cruises | 58.0 | 58.0 | – |
| Central operations | 14.7 | 13.2 | + 11.4 |
| Continuing operations | 3,082.9 | 3,630.8 | - 15.1 |
| Discontinued operation container shipping | 1,118.9 | 1,451.2 | - 22.9 |
| Divisional turnover | 4,201.8 | 5,082.0 | - 17.3 |
In the first quarter of 2009, turnover by the continuing operations amounted to €3.1bn, down 15% year-on-year. The decline in turnover was attributable to TUI Travel’s diminishing business volume, caused by the capacity cuts and the fact that, unlike in 2008, the Easter business was not included. Another reason for the decline in turnover by tourism was the weakening of the exchange rate of the British pound against the euro.
Discontinued operations, which comprised the container shipping activities, recorded a 23% decline in turnover to €1.1bn in the first quarter. This was primarily due to two reasons: the year-on-year decline in freight rate levels of 14% and the year-on-year fall in transport volumes of 15%. On the other hand, the US dollar exchange rate rose by 13% against the euro.
At €4.2bn, total turnover by the TUI Group’s divisions fell 17% year-on-year in the first quarter of 2009.
Development of earnings
Underlying divisional EBITA
| € million | Q1 2009 | Q1 2008 | Var. % |
|---|---|---|---|
| Tourism | - 276.1 | - 220.6 | - 25.2 |
| TUI Travel | - 288.7 | - 239.7 | - 20.4 |
| TUI Hotels & Resorts | 12.7 | 13.2 | - 3.8 |
| Cruises | - 0.1 | 5.9 | n/a |
| Central operations | - 48.1 | 6.9 | n/a |
| All other segments | 7.6 | 43.5 | - 82.5 |
| Consolidation | - 55.7 | - 36.6 | - 52.2 |
| Continuing operations | - 324.2 | - 213.7 | - 51.7 |
| Discontinued operation container shipping | - 221.7 | 18.5 | n/a |
| Underlying divisional EBITA | - 545.9 | - 195.2 | - 179.7 |
Divisional EBITA
| € million | Q1 2009 | Q1 2008 | Var. % |
|---|---|---|---|
| Tourism | - 351.2 | - 306.0 | - 14.8 |
| TUI Travel | - 363.8 | - 325.1 | - 11.9 |
| TUI Hotels & Resorts | 12.7 | 13.2 | - 3.8 |
| Cruises | - 0.1 | 5.9 | n/a |
| Central operations | - 48.1 | 6.9 | n/a |
| All other segments | 7.6 | 43.5 | - 82.5 |
| Consolidation | - 55.7 | - 36.6 | - 52.2 |
| Continuing operations | - 399.3 | - 299.1 | - 33.5 |
| Discontinued operation container shipping | 748.8 | 1.1 | n/a |
| Divisional earnings (EBITA) | 349.5 | - 298.0 | n/a |
Operating earnings adjusted for special effects of the continuing operations tourism and central operations (underlying divisional EBITA) decreased by €111m to €-324m year-on-year in the first quarter of 2009, mainly due to the lower profit contribution by tourism.
In the first quarter of 2009, the seasonally negative underlying earnings by tourism totalled €-276m, down €56m year-on-year. The decrease in TUI Travel’s operating earnings was driven by the late Easter in 2009 and the adverse impacts of political unrest on tours to the French West Indies as well as Madagascar and Thailand. This affected in particular TUI activities in France and the Nordic countries. In addition, demand in the travel market decreased, as expected, in the first quarter due to the current economic climate. Thanks to active capacity management, however, pricing and utilisation of the committed capacity in all essential volume markets were retained in line with expectations. The hotel sector generated stable earnings in the first quarter. Earnings by the cruises sector were impacted by the start-up losses of TUI Cruises.
Underlying earnings by the central operations fell by €55m to €-48m year-on-year in the first quarter of 2009. The decline in earnings was mainly attributable to profits from the valuation of derivates which were included in previous year’s figures.
Underlying earnings by the container shipping operations, reclassified to discontinued operations, were €240m down year-on-year in the first quarter of 2009, mainly due to the 14% decrease in freight rate levels and the 15% decline in volumes year-on-year.
Total underlying earnings by the TUI Group’s divisions declined by €351m to €-546m in the first quarter of 2009.
Underlying divisional EBITA: Group
| € million | Q1 2009 | Q1 2008 | Var. % |
|---|---|---|---|
| Divisional EBITA | 349.5 | - 298.0 | n/a |
| Gains on disposal | - 989.5 | – | |
| Restructuring | + 27.5 | + 27.1 | |
| Purchase price allocation | + 29.5 | + 61.7 | |
| Other one-off items | + 37.1 | + 14.0 | |
| Underlying divisional EBITA | - 545.9 | - 195.2 | - 179.7 |
In the first quarter of 2009, the Group had items worth €895m to be adjusted. Reported divisional EBITA accounted for €350m in the first quarter, a significant rise of €648m year-on-year. They included the special income from the book profit realised in the first quarter from the sale of the majority stake in container shipping of €990m.