The TUI Group is confident about its full-year performance in the light of a successful third quarter of financial year 2011/12 and strong current trading for the summer business. In the period under review, TUI Group’s turnover grew by 8 per cent year-on-year to 4.7 billion euros (previous year 4.4 billion euros). Operating earnings climbed by 6 per cent to 102 million euros (previous year 96 million euros). The Group result turned around from -40 million euros in the prior-year comparative quarter to 9 million euros. TUI also took a crucial step forward in achieving its planned debt reduction: As at 30 June, net debt was cut by around 800 million euros to 759 million euros, above all due to a reduction in the Hapag-Lloyd investment. “We are seeing our business performance outlook more than confirmed and will achieve our targets for the year despite the European debt crisis,” commented TUI CEO Dr Michael Frenzel.
For the Cruises Sector, TUI expects operating earnings to decline as at the end of the year due to start-up costs associated with the fleet expansion. By contrast, the outlook for Hotels & Resorts has been lifted. Frenzel: “Our performance is exceeding our expectations. We now expect underlying EBITA in the Hotel Sector to improve significantly.” For TUI Travel, the TUI AG Executive Board expects underlying EBITA to increase. The key earnings drivers are positive effects of the business improvement programmes and higher margins resulting from the product strategy. Should Sterling remain strong against the Euro, TUI Travel might further exceed current expectations.
For the overall Group, TUI AG expects a moderate increase in turnover, growth in operating earnings and a positive Group result for the year.
Cumulative turnover for the first nine months of the financial year grew by 7 per cent to 11.5 billion euros (previous year 10.8 billion euros). The Group’s underlying EBITA improved by 4 per cent to a seasonal loss of 269 million euros (previous year -279 million euros).