Consolidated Turnover and Earnings
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Turnover by divisions
| € million | Q1 2008 | Q1 2007 | Var. % |
|---|---|---|---|
| Tourism | 3,623.3 | 2,639.4 | + 37.3 |
| TUI Travel | 3,471.4 | 2,505.3 | + 38.6 |
| TUI Hotels & Resorts | 93.9 | 84.2 | + 11.5 |
| Cruises | 58.0 | 49.9 | + 16.2 |
| Central operations | 13.2 | 31.0 | - 57.4 |
| Continuing operations | 3,636.5 | 2,670.4 | + 36.2 |
| Container shipping | 1,451.2 | 1,423.7 | + 1.9 |
| Discontinued operation | 1,451.2 | 1,423.7 | + 1.9 |
| Turnover by divisions | 5,087.7 | 4,094.1 | + 24.3 |
Continuing operations
In the first quarter of 2008, turnover by the TUI Group’s continuing operations was up 36.2% year-on-year.
In the first quarter of 2008, tourism turnover of € 3.6 billion grew by 37.3% year-on-year. The turnover growth was driven by all tourism segments, with TUI Travel in particular recording substantial increases in turnover due to consolidation. Even adjusted for the first-time consolidation of the First Choice activities, turnover by TUI Travel rose by 1.8%.
Discontinued operation
Discontinued operation, which mainly comprised the reclassified container shipping operations, recorded turnover growth of 1.9% to € 1.5 billion. The key drivers for this development were the year-on-year increase in freight rate levels as well as slight growth in volumes whereby turnover growth was impacted by the year-on-year decline by 14.4% in the US dollar exchange rate against the euro.
Group
Total turnover by the TUI Group’s divisions rose to € 5.1 billion in the first quarter of 2008, up 24.3% year-on-year.
Development of earnings by divisions
Earnings by divisions (EBITA)
|
€ million |
Underlying EBITA by division Q1 2008 |
Q1 2007 |
Var. % |
EBITA by division Q1 2008 |
Q1 2007 |
Var. % |
|---|---|---|---|---|---|---|
| Tourism | - 221 | - 227 | + 2.6 | - 305 | - 237 | - 28.7 |
| TUI Travel | - 240 | - 246 | + 2.4 | - 324 | - 256 | - 26.6 |
| TUI Hotels & Resorts | 13 | 16 | - 18.8 | 13 | 16 | - 18.8 |
| Cruises | 6 | 3 | + 100.0 | 6 | 3 | + 100.0 |
| Central operations | 7 | 15 | - 53.3 | 7 | 15 | - 53.3 |
| Continuing operations | - 214 | - 212 | - 0.9 | - 298 | - 222 | - 34.2 |
| Container shipping | 18 | - 36 | n/a | 1 | 137 | - 99.3 |
| Discontinued operation | 18 | - 36 | n/a | 1 | 137 | - 99.3 |
| Earnings by divisions (EBITA) | - 196 | - 248 | + 21.0 | - 297 | - 85 | - 249.4 |
Continuing operations
In the first quarter of 2008, earnings by the continuing operations tourism and central operations before adjustment for one-off effects declined for seasonal reasons by € 76 million to € - 298 million year-on-year due to the first-time consolidation of First Choice. Adjusted for the one-off effects included in earnings for the first quarter of 2008, operating earnings (underlying EBITA by divisions) declined only slightly by 0.9% to € - 214 million. Adjusted for First Choice, the operating earnings improved significantly by 38.2% to € - 131 million.
Underlying EBITA by division: Tourism
| € million | Q1 2008 | Q1 2007 | Var. % |
|---|---|---|---|
| EBITA by division | - 305 | - 237 | - 28.7 |
| Gains on disposals | – | – | |
| Restructuring | + 27 | + 2 | |
| Purchase price allocation | + 42 | – | |
| Other one-off items | + 15 | + 8 | |
| Underlying EBITA by division | - 221 | - 227 | + 2.6 |
For seasonal reasons the first quarter of tourism division is loss making. At € - 305 million, tourism earnings declined by 28.7% year-on-year, primarily due to the first-time consolidation of First Choice. Earnings for the first quarter of 2008 included costs incurred in the wake of the merger between First Choice and TUI’s tourism entities totalling
€ 69 million, comprised of restructuring costs of € 20 million, purchase price allocations of € 42 million and one-off integration costs of € 7 million. Furthermore, earnings included one-off effects from current restructuring measures totalling € 7 million as well as one-off expenses of € 8 million of which € 3 million were incurred to facilitate marketing of an aircraft previously leased to third parties. In the first quarter of 2007, earnings had included one-off expenses for the introduction of the new TUIfly.com brand and follow-up costs for changes in the air passenger duty in the UK. Adjusted for these one-off effects, earnings in the first quarter of 2008 grew by 2.6%.
Underlying EBITA by division: Central operations
| € million | Q1 2008 | Q1 2007 | Var. % |
|---|---|---|---|
| EBITA by division | 7 | 15 | - 53.3 |
| Gains on disposals | – | – | |
| Restructuring | – | – | |
| Purchase price allocation | – | – | |
| Other one-off items | – | – | |
| Revaluation of conversion rights | – | – | |
| Underlying EBITA by division | 7 | 15 | - 53.3 |
Earnings by central operations declined by 53.3% to € 7 million compared with 2007 levels, which were supported by profits from the valuation of derivatives.
Discontinued operation
Underlying EBITA by division: Discontinued operation
| € million | Q1 2008 | Q1 2007 | Var. % |
|---|---|---|---|
| EBITA by division | 1 | 137 | - 99.3 |
| Gains on disposals | – | - 196 | |
| Restructuring | – | – | |
| Purchase price allocation | + 19 | + 21 | |
| Other one-off items | - 2 | + 2 | |
| Underlying EBITA by division | 18 | - 36 | n/a |
At € 1 million, container shipping earnings, reclassified to discontinued operation, were substantially down on the earnings of € 137 million in the corresponding quarter which was characterised by the one-off income from the divestment of the majority interest in Montreal Gateway Terminals of € 181 million and the divestment of the minority interest of Hapag-Lloyd AG in Germanischer Lloyd AG of € 15 million. In the first quarter of 2008, expenses for the purchase price allocation and minor one-off income from the reversal of a provision for the integration of CP Ships had to be adjusted for. Following adjustment of the one-off effects, earnings by container shipping totalled € 18 million in the first quarter of 2008, a substantial increase in earnings of € 54 million year-on-year.
Group
Underlying EBITA by division: Group
| € million | Q1 2008 | Q1 2007 | Var. % |
|---|---|---|---|
| EBITA by division | - 297 | - 85 | - 249.4 |
| Gains on disposals | – | - 196 | |
| Restructuring | + 27 | + 2 | |
| Purchase price allocation | + 61 | + 21 | |
| Other one-off items | + 13 | + 10 | |
| Revaluation of conversion rights | – | – | |
| Underlying EBITA by division | - 196 | - 248 | + 21.0 |
Overall, earnings by the TUI Group’s division declined by € 212 million in the first quarter of 2008 compared with the 2007 reference quarter, which had been characterised by gains on disposals. Adjusted for one-off effects, earnings totalled € - 196 million, up 21.0%.