Hanover, 21 October 2010. Following a meeting of the audit committee
TUI Travel PLC has announced today that recognized receivables related to the tour operator business in source market UK need to be written off. According to TUI Travel PLC, the write offs are caused by failures to reconcile balances in the IT systems of the retail and tour operators businesses in the UK. The write offs total 120 million euro.
These write offs to be effected by TUI Travel PLC will affect TUI’s consolidated financial statements. An amount of 45 million euro will have to be recognised as a reduction of underlying EBITA in the TUI Travel segment in the short financial year 2009. A restatement of 75 million euro relating financial years prior to 1 January 2009 will be shown in equity for the short financial year 2009 in the framework of a balance sheet correction.
Against this background, TUI Travel PLC CFO Paul Bowtell has decided that it is appropriate to offer his resignation. Peter Long, CEO TUI Travel PLC, and Paul Bowtell have agreed that he will leave the company at the end of the year.
The write offs to be effected for TUI Travel PLC will not have a negative impact on the TUI Group’s cash position and hence net debt. TUI AG’s earnings forecast (un-derlying EBITA) for the Tourism segment for financial year 2009/10 remains un-changed. TUI AG thus continues to expect a positive Group result for financial year 2009/10.
Some of the information in this press release may contain predictions, ex-pectations or forward-looking statements. These statements may entail known or unknown risks or uncertainties. Actual results and developments may therefore differ materially from the expressed expectations and assumptions. The performance of financial markets, the development of exchange rates, amendments to national and international laws, in particular concerning tax regulations, may also have an impact. Except as provided by law, the Company undertakes no obligation to update forward-looking statements.