Earnings Release • Mar 29, 2017
Earnings Release
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Dissemination of a RegulatoryAnnouncement, transmitted by EQS Group AG. The issuer is solely responsible for the content of this announcement.
Prior to entering its close period ahead of reporting its Interim results for the six months ending 31 March 2017 on 15 May 2017, TUIGroup announces the following update on current trading.
'Winter 2016/17 is closing out as expected, with a good performance by Hotels & Resorts, Cruise and growth in Source Market revenues, increasingly booked via our direct and online channels. Overall, Summer 2017 remains in line with our expectations, with almost half of the Source Markets' programme sold, further openings scheduled in our Group hotel brands, and cruise ship launches in both TUICruises and the UK.
We are progressing our transformation as the world's leading integrated tourism business focussed on own hotel and cruise brands, financed by our strong cash flows and proceeds from the disposals of Hotelbeds Group and Travelopia, creating a more competitive and less seasonal business for the long term. Whilst the impact of macroeconomic and geopolitical challenges is evident in certain source markets and destinations, our balanced portfolio of markets and destinations, our focus on growth in own hotel and cruise brands and our strong balance sheet put us in a robust position. We therefore reiterate our guidance of at least 10% growth inGroup underlying EBITA in 2016/17 1 .'
1 At constant foreign exchange translation rates applied in the current and prior period, and based on the current group structure
| Source Markets - Current Trading 1 |
Winter 2016/17 | ||||
|---|---|---|---|---|---|
| YoYvariation% | Total Revenue |
Total Customers |
Total ASP |
Programme sold (%) |
|
| Northern Region |
+11% | +7% | +4% | 97% | |
| UK | +20% | +12% | +7% | 95% | |
| Nordics | -4% | -2% | -3% | 100% | |
| Central Region |
+7% | +3% | +5% | 96% | |
| Germany | +6% | +1% | +5% | 96% | |
| Western Region |
+6% | +4% | +2% | 100% | |
| Benelux | +4% | +2% | +2% | 100% | |
| Total Source Markets |
+9% | +5% | +4% | 97% | |
1 These statistics are up to 19 March 2017, shown on a constant currency basis and relate to all customers whether risk or nonrisk
| Source Markets - Current Trading 1 |
Summer 2017 | ||||
|---|---|---|---|---|---|
| YoYvariation% | Total Revenue |
Total Customers |
Total ASP |
Programme sold (%) |
|
| Northern Region |
+10% | +3% | +8% | 51% | |
| UK | +11% | +3% | +8% | 53% | |
| Nordics | +5% | +3% | +2% | 42% | |
| Central Region |
+8% | +6% | +2% | 47% | |
| Germany | +6% | +3% | +3% | 47% | |
| Western Region |
+6% | +2% | +4% | 43% | |
| Benelux | +4% | Flat | +4% | 44% | |
| Total Source Markets |
+9% | +4% | +5% | 48% | |
1 These statistics are up to 19 March 2017, shown on a constant currency basis and relate to all customers whether risk or nonrisk
Our strategy of hedging the majority of our jet fuel and currency requirements for future seasons, as detailed below, remains unchanged. This gives us certainty of costs when planning capacity and pricing. The following table shows the percentage of our forecast requirement that is currently hedged for Euros, US Dollars and jet fuel for our Source Markets, which account for over 90% of our Group currency and fuel exposure.
| Winter 2016/17 |
Summer 2017 |
Winter 2017/18 |
|
|---|---|---|---|
| Euro | 100% | 94% | 59% |
| US Dollars | 96% | 88% | 62% |
| Jet Fuel | 93% | 93% | 82% |
| As at 24 March |
|||
| 2017 |
Overall, Winter 2016/17 and Summer 2017 are trading in line with our expectations. Our balanced portfolio of markets and destinations, our focus on growth in own hotel and cruise brands and our strong balance sheet put us in a robust position, despite the impact of macroeconomic and geopolitical challenges in certain source markets and destinations. We therefore reiterate our guidance of at least 10% growth inGroup underlying EBITA in 2016/17 1. We are continuing to deliver the transformation of the business, financed by our strong cash flows and the proceeds of disposals, which we believe will put us in an even stronger competitive position and create a less seasonal business for the long term.
TUIGroup will issue its H1 Interim results on Monday 15 May 2017 and hold a presentation for investors and analysts on the same day. Further details will follow.
| Contacts for Analysts and Investors in UK, Ireland and Americas | |
|---|---|
| Sarah Coomes, Head of Investor Relations | Tel: +44 (0)1293 645 827 |
| Hazel Chung, Investor Relations Manager | Tel: +44 (0)1293 645 823 |
| Contacts for Analysts and Investors in Continental Europe, Middle East and Asia | |
| Nicola Gehrt, Head of Investor Relations | Tel: +49 (0)511 566 1435 |
| Ina Klose, Investor Relations Manager | Tel: +49 (0)511 566 1318 |
| Jessica Blinne, Team Assistant | Tel: +49 (0)511 566 1425 |
The EQS Distribution Services include RegulatoryAnnouncements, Financial/Corporate News and Press Releases. Archive at www.dgap.de/ukreg
| Language: English | |
|---|---|
| Company: | TUIAG |
| Karl-Wiechert-Allee 4 | |
| 30625 Hannover | |
| Germany | |
| Phone: | +49 (0)511 566-1425 |
| Fax: | +49 (0)511 566-1096 |
| E-mail: | [email protected] |
| Internet: | www.tuigroup.com |
| ISIN: | DE000TUAG000, DE000TUAG281, DE000TUAG299 |
| WKN: | TUAG00 , TUA G28, TUA G29 |
| Listed: | Regulated Market in Hanover; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange; Open Market in Frankfurt; London |
| Category Code: |
TST |
| TIDM: | TUI |
| LEICode: | 529900SL2WSPV293B552 |
| OAM Categories: |
3.1.Additional regulated information required to be disclosed under the laws of a Member State |
| Sequence No.: |
3999 |
End ofAnnouncementEQS News Service
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