Consolidated Turnover and Earnings
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Turnover by divisions
| € million | Q2 2008 | Q2 2007 | Var. % | H1 2008 | H1 2007 | Var. % |
|---|---|---|---|---|---|---|
| Tourism | 4,721.6 | 3,680.3 | + 28.3 | 8,344.9 | 6,319.7 | + 32.0 |
| TUI Travel | 4,575.2 | 3,553.6 | + 28.7 | 8,046.6 | 6,058.9 | + 32.8 |
| TUI Hotels & Resorts | 99.9 | 90.7 | + 10.1 | 193.8 | 174.9 | + 10.8 |
| Cruises | 46.5 | 36.0 | + 29.2 | 104.5 | 85.9 | + 21.7 |
| Central operations | 18.6 | 44.0 | - 57.7 | 31.8 | 75.0 | - 57.6 |
| Continuing operations | 4,740.2 | 3,724.3 | + 27.3 | 8,376.7 | 6,394.7 | + 31.0 |
| Container shipping | 1,510.1 | 1,472.5 | + 2.6 | 2,961.3 | 2,896.2 | + 2.2 |
| Discontinued operation | 1,510.1 | 1,472.5 | + 2.6 | 2,961.3 | 2,896.2 | + 2.2 |
| Turnover by divisions | 6,250.3 | 5,196.8 | + 20.3 | 11,338.0 | 9,290.9 | + 22.0 |
Continuing operations
In the second quarter of 2008, turnover by the TUI Group’s continuing operations was 27.3% up year-on-year. Accumulated turnover for the first half of 2008 also rose by 31.0% year-on-year.
At € 4.7 billion, turnover by tourism grew by 28.3% year-on-year in the second quarter of 2008. This growth was driven by all tourism segments, with TUI Travel in particular recording a significant rise in turnover due to changes in consolidation. Adjusted for the first-time consolidation of the First Choice activities, turnover by TUI Travel declined by 4.5% year-on-year. In the first half of 2008, turnover climbed 32.0% year-on-year; adjusted for the turnover portion of First Choice, it decreased by 1.3%.
Discontinued operation
The discontinued operation, which comprised the reclassified container shipping activities including the interests in container terminals, recorded a 2.6% rise in turnover to € 1.5 billion in the second quarter of 2008. In the first half of 2008, the reclassified container shipping operations posted year-on-year an 2.2% increase in turnover to € 3.0 billion. This growth was primarily driven by the rise in freight rate levels year-on-year and slight volume growth opposed to the US dollar exchange rate which declined by 13.2% against the euro.
Group
Overall, turnover by the TUI Group’s divisions grew by 20.3% to € 6.3 billion year-on-year in the second quarter of 2008. At € 11.3 billion, turnover for the first half of the year was 22.0% up year-on-year.
Development of earnings by divisions
Underlying EBITA by divisions
| € million | Q2 2008 | Q2 2007 | Var. % | H1 2008 | H1 2007 | Var. % |
|---|---|---|---|---|---|---|
| Tourism | 86 | 45 | + 91.1 | - 135 | - 180 | + 25.0 |
| TUI Travel | 71 | 31 | + 129.0 | - 169 | - 213 | + 20.7 |
| TUI Hotels & Resorts | 15 | 15 | – | 28 | 31 | - 9.7 |
| Cruises | 0 | - 1 | + 100.0 | 6 | 2 | + 200.0 |
| Central operations | 15 | - 15 | n/a | 22 | - 2 | n/a |
| Continuing operations | 101 | 30 | + 236.7 | - 113 | - 182 | + 37.9 |
| Container shipping | 115 | 5 | n/a | 133 | - 31 | n/a |
| Discontinued operation | 115 | 5 | n/a | 133 | - 31 | n/a |
| Earnings by divisions (EBITA) | 216 | 35 | + 517.1 | 20 | - 213 | n/a |
EBITA by divisions
| € million | Q2 2008 | Q2 2007 | Var. % | H1 2008 | H1 2007 | Var. % |
|---|---|---|---|---|---|---|
| Tourism | - 146 | 11 | n/a | - 451 | - 224 | - 101.3 |
| TUI Travel | - 159 | - 3 | n/a | - 483 | - 257 | - 87.9 |
| TUI Hotels & Resorts | 13 | 15 | - 13.3 | 26 | 31 | - 16.1 |
| Cruises | 0 | - 1 | + 100.0 | 6 | 2 | + 200.0 |
| Central operations | 15 | - 21 | n/a | 22 | - 8 | n/a |
| Continuing operations | - 131 | - 10 | n/a | - 429 | - 232 | - 84.9 |
| Container shipping | 89 | 13 | + 584.6 | 90 | 150 | - 40.0 |
| Discontinued operation | 89 | 13 | + 584.6 | 90 | 150 | - 40.0 |
| Earnings by divisions (EBITA) | - 42 | 3 | n/a | - 339 | - 82 | - 313.4 |
Continuing operations
Earnings before adjustment for one-off effects of the continuing operations tourism and central operations (EBITA) declined by € 121 million to € -131 million in the second quarter of 2008. This included in particular charges of € 158 million in total from the strategic realignment of TUI Travel’s airline activities outlined above. Due to the charges mentioned above as well as due to the first-time consolidation of First Choice, accumulated earnings for the first half of the year declined by € 197 million. Adjusted for these one-off effects, operating earnings (underlying EBITA by divisions) rose correspondingly by 236.7% to € 101 million in the second quarter and by 37.9% to € - 113 million in the first half of 2008.
Underlying EBITA by division: Tourism
| € million | Q2 2008 | Q2 2007 | Var. % | H1 2008 | H1 2007 | Var. % |
|---|---|---|---|---|---|---|
| EBITA by division | - 146 | 11 | n/a | - 451 | - 224 | - 101.3 |
| Gains on disposals | – | – | – | – | ||
| Restructuring | + 190 | + 3 | + 217 | + 5 | ||
| Purchase price allocation | + 12 | – | + 54 | – | ||
| Other one-off items | + 30 | + 31 | + 45 | + 39 | ||
| Underlying EBITA by division | 86 | 45 | + 91.1 | - 135 | - 180 | + 25.0 |
At € - 146 million, earnings by tourism dropped by € 157 million year-on-year, mainly due to the first-time consolidation of First Choice and the charges incurred in connection with the strategic realignment of TUI Travel’s airline activities. Earnings for the second quarter of 2008 included one-off effects of current restructuring programmes of € 2 million, one-off income of € 2 million and charges incurred in the wake of the merger between First Choice and TUI’s tourism entities totalling € 228 million. These charges related to restructuring expenses of € 188 million, purchase price allocations of € 12 million and one-off integration costs of € 28 million. Earnings in the second quarter of 2007 had comprised one-off effects of € 34 million, including € 2 million incurred in connection with the merger between First Choice and TUI’s tourism division, which had to be eliminated. Adjusted for the one-off effects, earnings grew by 91.1% in the second quarter and 25.0% in the first half of the year.
Underlying EBITA by division: Central operations
| € million | Q2 2008 | Q2 2007 | Var. % | H1 2008 | H1 2007 | Var. % |
|---|---|---|---|---|---|---|
| EBITA by division | 15 | - 21 | n/a | 22 | - 8 | n/a |
| Gains on disposals | – | – | – | – | ||
| Restructuring | – | + 6 | – | + 6 | ||
| Purchase price allocation | – | – | – | – | ||
| Other one-off items | – | – | – | – | ||
| Underlying EBITA by division | 15 | - 15 | n/a | 22 | - 2 | n/a |
Underlying earnings by central operations rose by € 30 million to € 15 million year-on-year in the second quarters due to provisions no longer required. Accumulated earnings for the first half of the year grew by € 24 million for the same reason.
Discontinued operation
Underlying EBITA by division: Discontinued operation
| € million | Q2 2008 | Q2 2007 | Var. % | H1 2008 | H1 2007 | Var. % |
|---|---|---|---|---|---|---|
| EBITA by division | 89 | 13 | + 584.6 | 90 | 150 | - 40.0 |
| Gains on disposals | – | + 3 | – | - 193 | ||
| Restructuring | + 7 | – | + 7 | – | ||
| Purchase price allocation | + 19 | + 20 | + 38 | + 41 | ||
| Other one-off items | – | - 31 | - 2 | - 29 | ||
| Underlying EBITA by division | 115 | 5 | n/a | 133 | - 31 | n/a |
Earnings by the container shipping operations, reclassified to discontinued operations, grew by € 76 million year-on-year in the second quarter of 2008. They comprised as in previous quarters expenses for the purchase price allocation which amounted to € 19 million and had to be adjusted in the second quarter of 2008, as well as expenses for restructuring of € 7 million. 2007 had included a one-off income of € 8 million on balance. Adjusted for these one-off effects, underlying earnings by container shipping totalled € 115 million in the second quarter of 2008, a significant year-on-year increase of € 110 million. In the first half of 2008, earnings were considerably down on the earnings of € 150 million posted in the 2007 reference period, characterised by one-off effects of the divestment of the majority interest in Montreal Gateway Terminals of € 178 million and the divestment of the minority interest held by Hapag-Lloyd AG in Germanischer Lloyd AG of € 15 million.
In the first half of 2008, underlying earnings grew by € 164 million year-on-year due to significantly improved operating earnings.
Group
Underlying EBITA by division: Group
| € million | Q2 2008 | Q2 2007 | Var. % | H1 2008 | H1 2007 | Var. % |
|---|---|---|---|---|---|---|
| EBITA by division | - 42 | 3 | n/a | - 339 | - 82 | - 313.4 |
| Gains on disposals | – | + 3 | – | - 193 | ||
| Restructuring | + 197 | + 9 | + 224 | + 11 | ||
| Purchase price allocation | + 31 | + 20 | + 92 | + 41 | ||
| Other one-off items | + 30 | – | + 43 | + 10 | ||
| Underlying EBITA by division | 216 | 35 | + 517.1 | 20 | - 213 | n/a |
Total earnings by the TUI Group’s divisions declined by € 45 million in the second quarter of 2008, totalling € - 42 million. Accumulated earnings for the first half of the year amounted to € - 339 million, down by € 257 million against the 2007 reference period which was characterised by gains on disposal. Adjusted for one-off effects, underlying earnings accounted for € 216 million (previous year: € 35 million) in the second quarter of 2008 and € 20 million (previous year: € - 213 million) in the first half of 2008.