Consolidated income statement
€ million | Q2 2009 | Q2 20081) restated | Var. % | H1 20092) restated | H1 20081) restated | Var. % | |
|---|---|---|---|---|---|---|---|
| Turnover | 4,175.7 | 4,740.4 | - 11.9 | 7,258.6 | 8,371.2 | - 13.3 | |
| Cost of sales | 3,785.5 | 4,449.9 | - 14.9 | 6,950.0 | 8,017.6 | - 13.3 | |
| Gross profit/loss | 390.2 | 290.5 | + 34.3 | 308.6 | 353.6 | - 12.7 | |
| Administrative expenses | 342.1 | 322.6 | + 6.0 | 630.3 | 699.8 | - 9.9 | |
| Other income/other expenses | - 1.9 | - 99.7 | + 98.1 | 2.6 | - 82.1 | n/a | |
| Impairment of goodwill | – | 76.1 | n/a | – | 76.1 | n/a | |
| Financial result | - 419.3 | - 100.5 | - 317.2 | - 482.4 | - 193.6 | - 149.2 | |
| Financial income | 50.9 | 63.9 | - 20.3 | 91.0 | 72.4 | + 25.7 | |
| Financial expenses | 470.2 | 164.4 | + 186.0 | 573.4 | 266.0 | + 115.6 | |
| Share of results of joint ventures and associates | - 115.2 | + 5.3 | n/a | - 111.4 | + 12.9 | n/a | |
| Earnings before taxes on income | - 488.3 | - 303.1 | - 61.1 | - 912.9 | - 685.1 | - 33.3 | |
| Reconciliation to underlying earnings: | |||||||
| Earnings before taxes on income | - 488.3 | - 303.1 | - 61.1 | - 912.9 | - 685.1 | - 33.3 | |
| Result from container shipping measured at equity | 121.2 | – | n/a | 121.2 | – | n/a | |
| Interest result from the valuation of loans to container shipping | 371.0 | – | n/a | 371.0 | – | n/a | |
| Interest result and earnings from the valuation of interest hedges | 48.2 | 93.7 | - 48.6 | 111.0 | 176.6 | - 37.1 | |
| Impairment of goodwill | – | 76.1 | n/a | – | 76.1 | n/a | |
| EBITA from continuing operations | 52.1 | - 133.3 | n/a | - 309.7 | - 432.4 | + 28.4 | |
| Adjustments: | |||||||
| Gains on disposal | – | – | – | – | |||
| Restructuring | + 7.4 | + 190.6 | + 34.9 | + 217.7 | |||
| Purchase price allocation | + 11.1 | + 13.9 | + 21.6 | + 56.5 | |||
| Other one-off items | + 24.3 | + 29.9 | + 61.4 | + 45.6 | |||
| Underlying EBITA from continuing operations | 94.9 | 101.1 | - 6.1 | - 191.8 | - 112.6 | - 70.3 | |
| Earnings before taxes on income | - 488.3 | - 303.1 | - 61.1 | - 912.9 | - 685.1 | - 33.3 | |
| Taxes on income | 27.2 | - 24.5 | n/a | - 57.8 | - 139.2 | + 58.5 | |
| Result from continuing operations | - 515.5 | - 278.6 | - 85.0 | - 855.1 | - 545.9 | - 56.6 | |
| Result from discontinued operation | - 8.1 | 151.7 | n/a | 937.0 | 140.2 | + 568.3 | |
| Group profit/loss | - 523.6 | - 126.9 | - 312.6 | 81.9 | - 405.7 | n/a | |
| attributable to shareholders of TUI AG | - 536.9 | - 56.4 | - 852.0 | 207.4 | - 223.6 | n/a | |
| attributable to minority interests | 13.3 | - 70.5 | n/a | - 125.5 | - 182.1 | + 31.1 | |
| Group profit/loss | - 523.6 | - 126.9 | - 312.6 | 81.9 | - 405.7 | n/a | |
| Basic earnings per share | in € | - 2.16 | - 0.24 | - 800.0 | + 0.78 | - 0.93 | n/a |
| Diluted earnings per share | in € | - 2.16 | - 0.24 | - 800.0 | + 0.78 | - 0.93 | n/a |
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1) Restatement as a consequence of the application of IFRIC 13 and the purchase price allocations finalised until 31 December 2008.
2) Caused by the application of the revised IFRS 3 and IAS 27 starting from 1 January 2009, the result from the discontinued operation of the 1st quarter 2009 has increased accordingly by € 191.5m due to a higher gain on disposal.
The year-on-year development of consolidated earnings was mainly characterised by the sale of container shipping in the first quarter of 2009. The consolidated income statement for the continuing operations reflects the seasonality of the tourism business, with positive earnings primarily generated in the second and third quarters of any one year due to the nature of the business.
Turnover and cost of sales
Turnover comprised the turnover of the continuing operations, i.e. tourism and central operations. Turnover declined by 12% year-on-year to €4.2bn in the second quarter of 2009 and fell by 13% to €7.3bn in the first half of the year. The decline was driven in particular by the year-on-year weakening of the exchange rate of the British pound and TUI Travel’s diminishing business volume caused by the capacity cuts. Turnover was presented alongside the cost of sales, which also decreased due to the lower business volume, the weakness of the British pound and cost reductions in the framework of 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 as the balance of turnover and the cost of sales rose by 34% year-on-year to €390m in the second quarter of 2009. In the first half of the year, gross profit amounted to €309m, down 13%.
Administrative expenses
Administrative expenses comprised expenses not directly allocable to the turnover transactions, such as expenses for general management functions. At €342m, they were up 6% year-on-year in the second quarter. For the first half of the year, they fell 10% year-on-year, in particular due to the weakness of the British pound and synergies delivered in the wake of the integration of TUI’s former tourism division and First Choice.
Other income/Other expenses
Other income and other expenses primarily comprised profits and losses from the sale of fixed asset items. The balance of income and expenses totalled €-2m in the second quarter, an improvement of 98% against the comparative 2008 figure, which had increased due to expenses for sale-and-lease-back transactions. In the first half of the year, netted income and expenses rose by €85m year-on-year for the same reason.
Impairment of goodwill
No goodwill impairments were effected in the second quarter of 2009.
Financial result
The financial result comprised the interest result and the net result from marketable securities. At €-419m, the financial result declined by 317% year-on-year in the second quarter of 2009 and comprised financial income of €51m (previous year: €64m) and financial expenses of €470m (previous year: €164m), which were up 186%. Financial expenses for the second quarter of 2009 included a charge of interest effects of €371m on the loans extended to container shipping.
Adjusted for this expense, the financial result rose by €82m year-on-year in the first half of 2009. This positive trend mainly resulted from the substantial improvement in the financial situation of the continuing operations following the sale of maritime assets to Hapag Lloyd AG and the loans extended to container shipping. An additional positive effect was generated by the overall fall in interest rate levels year-on-year.
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 significant decline in the share of results of joint ventures and associates in the second quarter and the first half of 2009 was attributable to the first-time inclusion of the 43.33% stake held by the TUI Group after the sale of the majority stake in container shipping in March 2009 as an associate in the consolidated financial statements. The proportionate negative earnings of container shipping accounted for €-121m in the second quarter of 2009.
Underlying EBITA from continuing operations
In the second quarter of 2009, underlying earnings by the continuing operations totalled €95m, down 6% year-on-year. EBITA was adjusted for gains on disposal, restructuring expenses, purchase price allocations and one-off items. The adjustments are outlined in detail in the section ’Consolidated turnover and earnings’ and the comments concerning the individual divisions.
Taxes on income
Taxes on income comprised taxes on profits from the business activities of the continuing operations. In the second quarter they totalled €27m, following €-25m in 2008. The tax income for the first half of 2009 was attributable to the seasonality of the tourism business, since the remeasurement of the investment for the share of profit or loss for container shipping and the charges for the loan to the container shipping did not affect deferred taxes.
Result from discontinued operation
The result from the discontinued operation comprised the operating income and expenses of container shipping until the disposal date as well as the gain on disposal. In accordance with the early application of IAS 27, the gain on disposal for the first quarter of 2009 from the sale of the majority stake in container shipping associated with the loss of control was restated. As a result, the gain on disposal (after deduction of the cost to sell) for the first quarter of 2009 rose by €192m. Taking account of subsequent purchase price adjustments, an overall positive gain on disposal of €1,135m is now carried. A detailed breakdown is provided in the section ‘Result from discontinued operation’ in the notes.
Group profit/loss
In the second quarter, Group profit/loss declined by €397m to €-524m. For the first half of the year, a Group profit of €82m was carried (previous year: Group loss of €-406m). The increase in the Group result for the first half of 2009 resulted from the charges carried in 2008 in the framework of the strategic realignment of TUI Travel’s flight operations.
Minority interests
Minority interests in Group profit/loss amounted to €13m for the second quarter and €-126m for the first half 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 €-537m (previous year: €56m) of Group profit in the second quarter of 2009. As a result, basic earnings per share amounted to €-2.16 (previous year: €-0.24) in the second quarter.
Performance indicators
Key figures of the consolidated statement of the continuing operations
| € million | Q2 2009 | Q2 2008 restated | Var. % | H1 2009 restated | H1 2008 restated | Var. % |
|---|---|---|---|---|---|---|
| Earnings before interest, taxes on income, depreciation, impairment and rent (EBITDAR) | 371.0 | 185.1 | + 100.4 | 316.7 | 194.7 | + 62.7 |
| Operating rental expenses | 220.2 | 190.7 | + 15.5 | 429.2 | 365.6 | + 17.4 |
| Earnings before interest, taxes on income, depreciation and impairment (EBITDA) | 150.8 | - 5.6 | n/a | - 112.5 | - 170.9 | + 34.2 |
| Depreciation/amortisation less reversals of depreciation1) | 98.7 | 127.7 | - 22.7 | 197.2 | 261.5 | - 24.6 |
| Earnings before interest, taxes on income and impairment of goodwill (EBITA) | 52.1 | - 133.3 | n/a | - 309.7 | - 432.4 | + 28.4 |
| Impairment of goodwill | – | 76.1 | n/a | – | 76.1 | n/a |
| Earnings before interest and taxes on income (EBIT) | 52.1 | - 209.4 | n/a | - 309.7 | - 508.5 | + 39.1 |
| Interest result | - 419.2 | - 93.7 | - 347,4 | - 482.0 | - 176.6 | - 172.9 |
| Equity result Container shipping | – 121.2 | – | n/a | – 121,2 | – | n/a |
| Earnings before taxes on income (EBT) | - 488.3 | - 303.1 | - 61.1 | - 912.9 | - 685.1 | - 33.3 |
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1) on property, plant and equipment, intangible assets, financial and other assets
Operating rental expenses
Operating rental expenses of the continuing operations amounted to €220m (previous year: €191m) in the second quarter and €429m (previous year: €366m) in the first half of the year. The rise in rental and leasing expenses was caused by the strategic realignment of flight operations (sale-and-lease-back agreements) of the TUI Travel Group. This increase was partly offset by capacity cuts in aviation and currency effects resulting from the development of the British pound.
Interest result
In the second quarter of 2009, the interest result of the continuing operations totalled €-419m (previous year: €-94m). The accumulated interest result for the first half of the year stood at €-482m (previous year: €-177m). Financial expenses for the second quarter of 2009 comprised in particular charges for interest effects on the loans totalling €371m extended to ‚Albert Ballin‘ Holding GmbH & Co. KG and Hapag-Lloyd AG, resulting from a comparison between the currently appropriate interest rates in the light of the current financial and risk position of container shipping and the interest rates agreed in March 2009. Adjusted for this expense, the interest result rose by €66m in the first half of the year. This positive trend was mainly attributable to the significant improvement in the financial situation of the continuing operations following the sale of the maritime assets to Hapag-Lloyd AG and the loans extended to container shipping. An additional positive effect was generated by the overall fall in interest rate levels year-on-year.
Further information
- Economic Situation (Download)