REG-TUI AG TUI AG: Q3 INTERIM FINANCIAL REPORT 1 October 2022 – 30 June 2023
09/08/2023 07:15
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TUI AG (TUI)
TUI AG: Q3 INTERIM FINANCIAL REPORT 1 October 2022 – 30 June 2023
09-Aug-2023 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
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TUI Group
Quarterly Statement
1 October 2022 – 30 June 2023
Content
1 Quarterly Statement Q3 2023.. 3
2 Summary. 3
3 Consolidated earnings. 9
4 Segmental performance.. 10
5 Cash Flow / Net debt / Net capex and investments. 15
6 Consolidated income statement. 16
7 Cash flow statement. 17
8 Financial position.. 18
9 Alternative performance measures. 20
10 Other segment indicators. 21
11 Cautionary statement regarding forward-looking statements. 22
12 Financial calendar. 22
13 Contacts. 22
This Quarterly Statement of TUI Group was prepared for the reporting period from 1
October 2022 to 30 June 2023.
Quarterly Statement Q3 2023
Summary
Q3 back to profitability with an underlying EBIT of €169.4m improving strongly by
€196.5m year-on-year. Current booking levels confirm our expectations for a strong
Summer and we are on track to deliver on FY 2023 expectations.
• The continued popularity of our unique product offering was underlined by 5.5m
customers enjoying a holiday with us in the quarter, an increase of 0.4m or +9%
versus the prior year and at 95% of Q3 2019 customer levels on a like for like
basis^1. As a result, average load factor for the quarter was 93% (Q3 2022:
load factor 92%).
• Group revenue of €5.3bn, was 19% higher across our segments versus the prior
year (Q3 2022: €4.4bn), supported by higher volumes and prices. This reflects
the strength of demand for our products with Group revenue 11% above
pre-pandemic levels driven by improved prices (Q3 2019: €4.7bn).
• Q3 Group underlying EBIT at €169.4m, improved strongly by €196.5m and €122m
excluding the impact of €75m flight disruption costs in the prior year
(Q3 2022: €-27.0m loss) and is the first profitable Q3 since the pandemic:
◦ Hotels & Resorts surpassed the already strong performance in the prior
year, reporting a fifth consecutive quarter above 2019, supported by
improved operational performances across our key brands.
◦ The recovery in Cruises continues with the segment achieving a fifth
positive quarter since the start of the pandemic. All of our three Cruise
brands contributed to the positive EBIT development boosted by increased
volumes as well as higher occupancies.
◦ Markets & Airlines delivered a solid improvement, driven in particular by
higher prices and strong demand. In addition, the segment profited from
the absence of the flight disruption costs which impacted the prior year.
• Following the €1.8bn capital raise in April, we successfully extended our
existing syndicated credit lines totaling €2.7bn in May. Both are significant
measures to improve our credit metrics, restore our balance sheet strength and
are a vote of confidence in TUI. As a result we have seen a first improvement
in our credit rating during the quarter, with S&P upgrading in April to B and
Moody’s upgrading in May to B2 both with a positive outlook.
• The net debt position as of 30 June 2023 was €-2.2bn, an improvement of €1.1bn
year-on-year (30 June 2022: €-3.3bn). This is driven by the net proceeds
(following final repayment of the WSF obligations) from our capital increase in
April 2023 and a positive free cash flow.
• We confirm our expectations for a strong Summer. Bookings total 12.5m^2 for the
season, a 6% increase versus Summer 2022 and an increase of 4.3m guests since
our Half-Year Financial Report H1 2023. As a result, bookings are close to
pre-pandemic levels at 95%. ASP continues to hold up strongly at +7% against
the previous season and +26% against Summer 2019.
• Bookings were impacted in the short-term as a result of the wildfires in
Southern Europe and flight cancella-tions to Rhodes, but have subsequently
recovered as operations have resumed, enabling customers to enjoy their
holidays once again. As a result, bookings for the last week were +5% against
Summer 2022, with ASP up +9% over the same period and ahead of the cumulative
position.
• We continue to monitor the situation concerning the wildfires in Southern
Europe and remain in close contact with local authorities. As events unfolded
in Rhodes, the safety of our guests and colleagues in the affected areas was
paramount. Together with our 300 service staff, we were able to provide our
guests with 24/7 support and welfare. We operated twelve repatriation flights
with additional aircraft deployed to bring our guests home safely, all
highlighting the benefit of our customer proposition. However, we also want to
support the communities on the island directly affected by the fires. The TUI
Care Foundation has launched a fundraising campaign. Every donation received
will be doubled by the foundation.
• In total we evacuated 8,000 of our guests, but it is also important to point
out that 80% of our guest on the island have been unaffected. Rhodes accounts
for ca. 5% of our full Summer 2023 programme. The financial impact of the
wildfires in recent weeks covering cancellations & lost margin, customer
compensation as well as repatriation flights & welfare costs has added ca. €25m
of cost to our full year 2023 results.
^1Excluding businesses sold and discontinued since 2019
^2 Bookings up to 6 August 2023 relate to all customers whether risk or non-risk
and include amendments and voucher re-bookings
• With 86% of the Summer sold, which is in line with 2022 and 2019 levels and
given the latest booking position, we are confident in our Summer 2023 capacity
assumption of being close to normalised 2019 Summer levels.
• We reconfirm our expectations to increase underlying EBIT significantly for
financial year 2023^1.
^1 Based on constant currency.
Sustainability as opportunity
• Sustainability is a fundamental management principle for the TUI Group and a
cornerstone of our strategy for continually enhancing the value of our company.
We firmly believe that sustainable development is critical to long-term
economic success.
• We have near-term targets set for airline, cruises and hotels, to reduce
emissions in line with the latest climate science. These 2030 targets were
validated by the Science Based Targets initiative (SBTi) and published in our
Q1 Interim Report in February 2023.
• Together with destinations, TUI is shaping the future of sustainable tourism.
As a sign of this joint responsibility, the government of Cape Verde, TUI Group
and TUI Care Foundation have signed a Memorandum of Understanding “Tourism for
Development” to intensify their cooperation on a wide range of sustainability
topics. Their joint goal is to strengthen tourism on the islands as a force for
good. The agreement introduces key strategic focus areas that the three
signatories want to focus on in their joint efforts. The agreement covers a
wide range of 18 issues – from renewable energy and environmental protection to
local entrepreneurship empowerment, cultural heritage protection and education.
• TUI is driving the sustainability transformation of the tourism sector through
its initiatives. An important milestone has been achieved for TUI´s excursion
business: 1,000 excursions offered on TUI Musement platforms have now been
checked against global sustainability standards. TUI is one of the first
companies in the industry to start applying global sustainability standards to
its experiences portfolio. The certified process for experiences is designed to
support local suppliers on their way to sustainable offerings and therefore
advance the entire sector.
• In our Cruise operations Mein Schiff has now successfully tested a bio-fuel
blend derived from waste cooking oil, on one of its vessels. These fuels reduce
sulphur oxide particles and carbon emissions by up to 90% compared to fossil
fuels.
• Recently, TUI has successfully extended the maturity of its existing credit
lines of €2.7bn by a further two years. The syndicated credit line will now
mature in July 2026. The interest conditions of this revolving credit facility
(RCF) are linked to the achievement of the Group’s emission reduction targets
confirmed by SBTi.
• Transparency on TUI´s sustainability progress is an integral part of our
journey towards a net-zero company. Independent, external evaluation of our
actions means accountability towards the public. ISS ESG has upgraded TUI
Group’s sustainability rating. With the new C+ rating, TUI is listed as a
“Prime Investment” in the tourism sector for the first time. The transparency
level for TUI’s sustainability commitment is rated as “very high”.
TUI Group – financial highlights
Q3 2023 Q3 2022 Var. 9M 2023 9M 2022 Var. Var. %
adjusted % adjusted % at
constant
€ million currency
+ +
Revenue 5,286.0 4,433.2 19.2 12,189.4 8,930.8 36.5 + 37.9
Underlying
EBIT^1
Hotels & +
Resorts 112.5 104.9 + 7.3 262.2 189.7 38.2 + 41.0
Cruises 64.0 3.0 n. a. 79.0 - 102.3 n. a. n. a.
TUI +
Musement 13.1 13.3 - 1.6 - 13.1 - 18.1 27.9 + 53.9
Holiday + +
Experiences 189.7 121.2 56.5 328.1 69.2 373.9 + 387.8
Northern + +
Region - 1.1 - 93.1 98.9 - 270.6 - 445.7 39.3 + 33.8
Central - -
Region 8.8 20.3 56.8 - 122.4 - 62.4 96.0 - 98.9
Western + +
Region - 1.0 - 70.2 98.6 - 103.9 - 159.5 34.9 + 33.5
Markets & +
Airlines 6.3 - 143.0 n. a. - 496.9 - 667.7 25.6 + 21.3
All other - -
segments - 26.6 - 5.2 408.0 - 57.2 - 32.0 78.5 - 79.1
+
TUI Group 169.4 - 27.0 n. a. - 225.9 - 630.5 64.2 + 61.2
EBIT^1 175.4 - 42.5 n. a. - 230.8 - 657.0 +
64.9
Underlying 366.6 180.8 + 382.0 -7.7
EBITDA 102.8 n. a.
EBITDA^2 +
446.0 171.2 160.4 461.3 - 14.2 n. a.
- +
Group loss 52.5 - 331.2 n. a. - 505.5 1,039.1 51.3
Earnings +
per share^3 € 0.07 - 1.28 n. a. - 1.72 - 4.02 57.2
Net capex
and -
investment 92.3 152.0 39.3 310.1 288.7 + 7.4
Equity
ratio (31
Mar)^4 % 4.7 - 1.2 + 5.9
Net debt - - +
(30 Jun) 2,171.9 3,314.1 34.5
Employee
(30 Jun) 65,018 60,058 + 8.3
Differences may occur due to rounding.
^1 We define the EBIT in underlying EBIT as earnings before interest, income taxes
and result of the measurement of the Group’s interest hedges. For further details
please see page 20.
^2 EBITDA is defined as earnings before interest, income taxes, goodwill impairment
and amortisation and write-ups of other intangible assets, depreciation and
write-ups of property, plant and equipment, investments and current assets.
^3 Earnings per share for all periods presented were adjusted for the impact of the
10-for-1 reverse stock split in February 2023 as well as the impact of the
subscription rights issued in the capital increase in March 2023.
^4 Equity divided by balance sheet total in %, variance is given in percentage
points.
All change figures refer to the same period of the previous year, unless otherwise
stated.
The present Quarterly Statement Q3 2023 is based on TUI Group’s reporting structure
set out in the Consolidated Financial Statements of TUI AG as at 30 September 2022.
See TUI Group Annual Report 2022 from page 27. Due to the re-segmentation of Future
Markets from All other segments to Hotels & Resorts, TUI Musement and Central
Region in the current financial year, previous year’s figures have been adjusted.
Trading update – Booking level remain strong for Summer 2023 supported by higher
ASP, confirming customers continue to prioritise holidays. We are confident the
capacity for the season will be close to normalised levels
Markets & Airlines
Trading Markets & Airlines Summer season^1
Variation in % versus 2022 2022 2019
Summer 2023 last week Summer 2023
Bookings^2 + 6 + 5 - 5
ASP + 7 + 9 + 26
Summer 2023^2
• We have a strong pipeline of 12.5m bookings for Summer 2023, with 4.3m bookings
added since our H1 2023 Report on 10 May 2023. As a result 86% of the programme
has already been sold in line with Summer 2022 and Summer 2019 levels.
• Bookings for Summer 2023 are up +6% year-on-year and at 95% of pre-pandemic
levels.
• ASP continues to be well up +7% versus Summer 2022 and notably ahead of the +5%
we published at H1 2023, highlighting the popularity of our summer holidays and
our customers’ continued willingness to prioritise spend on travel and
experiences. Compared to Summer 2019 ASP remains significantly up at +26% and
in line with the ASP increase we published in May.
• Bookings were impacted in the short-term as a result of the wildfires in
Southern Europe and flight cancella-tions to Rhodes, but have subsequently
recovered as operations have resumed, enabling customers to enjoy their
holidays once again. As a result, bookings for the last week were +5% against
Summer 2022 with ASP up +9% over the same period and ahead of the cumulative
position.
• The UK remains our most advanced market in terms of booking with 89% of the
season sold and bookings at +1% against Summer 2022 and +4% against Summer
2019. In other key markets, bookings for Germany are up +11% against Summer
2022 and -4% against Summer 2019. In the Netherlands the picture is similar,
with bookings +5% higher against the prior season and -3% against pre-pandemic
levels.
• Given the latest booking position, we are confident in our Summer 2023 capacity
assumption of being close to normalised Summer 2019 levels.
Winter 2023/24^2
• Bookings for Winter 2023/24 are at a very early stage but the season has
started promisingly across our markets. As usual the UK programme is most
advanced at 33% sold. Bookings here are up +7% compared to Winter 2022/23. As
part of our regular reporting, we expect to update on Winter 2023/24
performance with our Pre-Close Trading Update on 19 September 2023.
^1 Depending on the source market, Summer season starts in April or May and ends in
September, October or November.
^2 Bookings up to 6 August 2023 relate to all customers whether risk or non-risk
and include amendments and voucher re-bookings
Holiday Experiences
Trading Holiday Experiences
July – September 2023^1
Variation in % versus July – September 2022
Hotels & Resorts^2
Available bed nights^3 + 2
Occupancy %^4 + 1 % points
Average daily rate + 5
Cruises
Available passenger cruise days^5 0
Occupancy %^6 + 13 % points
Average daily rate + 9
TUI Musement
Experiences sold + 10
Transfers in-line with Markets & Airlines
Holiday Experiences Q4^1 trading remains well on track to deliver FY 2023
expectations.
• Hotels & Resorts – Number of available bed nights for Q4^2 is +2% ahead of
prior year. Booked occupancy is up year-on-year at +1%pts for Q4. Average daily
rates are +5% ahead year-on-year for Q4, driven mainly by Riu. Popular
destinations in the key summer quarter are Turkey, the Caribbean, the
Balearics, Greece, the Canaries and Cape Verde.
• Cruises – Our three brands have a full fleet of sixteen ships in operation
during the summer. Q4 available passenger cruise days are in line with Q4 2022.
Booked occupancy rates remain significantly higher against prior year and are
up +13%pts for Q4. Average daily rates are +9% ahead of Q4 2022, with rates for
many itineraries achieving the peaks last seen in 2019.
• TUI Musement – Our Tours and Activities business continues its expansion
investing into growth while returning to 2019 profitability. The segment
benefits from our integrated model, with a global product offering in cities as
well as sun and beach locations, and growth of third-party sales through the
TUI Musement platform. The transfer business, providing support to our guests
in their destination, is expected to develop in line with our Markets &
Airlines capacity assumptions in 2023. Sales to date for our Experiences
business, providing excursions, activities and tickets, are +10% higher for Q4
against the prior year quarter. The significant growth in Experiences is driven
by the enlarged product offering especially online and our diversified
distribution via TUI, B2C and B2B.
^1 Q4 covers July to September 2023 with trading data as of 30 July 2023
^2 2023 trading data as of 30 July 2023 excluding Blue Diamond
^3 Number of hotel days open multiplied by beds available in the hotel (Group owned
and leased hotels)
^4 Occupied beds divided by available beds (Group owned and lease hotels)
^5 Number of operating days multiplied by berths available on the operated ships
^6 Achieved passenger cruise days divided by available passenger cruise days
Net debt
The net debt position as of 30 June 2023 was €-2.2bn, an improvement of €1.1bn
year-on-year (30 June 2022: €-3.3bn). This is driven by the net proceeds (following
repayment of the final WSF obligations) from our capital increase in April 2023 and
a positive free cash flow.
Strategic priorities
The TUI Group's strategy outlined in the Annual Report 2022^1 and at our FY2022
results presentation, will be continued in the current financial year.
TUI’s strategy aims to deliver growth in both Holiday Experiences and Markets &
Airlines, embedded in one central customer ecosystem, underpinned by our
sustainability agenda and our people. Our Holiday Experiences business strategy
focuses on asset-right growth in differentiated content and expanding the customer
base with multi-channel distribution. Having accelerated our strategic
transformation of Markets & Airlines during the pandemic, and fully implemented our
Global Realignment Programme, our business strategy is now focused on profitable
growth. This will be achieved by offering more product choice, growing our customer
ecosystem into untapped segments, and increasing customer value and thus market
share. This includes increasing the volume and proportion of dynamically sourced
packages, as well as significantly increasing our component offer in accommodation
only and flight only.
We also aim to further improve our cash position focusing on optimising working
capital and cash from operations and maintaining disciplined capital expenditure
through asset right growth. In April 2023, we successfully completed a €1.8bn
rights issue, facilitating the full repayment of the remaining state aid
instruments granted by the German Economic Stabilization Fund (WSF) and enabling a
significant reduction in the size of our KfW credits lines as well as a repayment
of current drawings under our credit lines in the same magnitude. In May we
successfully extended the maturity of our existing credit lines totaling €2.7bn
from July 2024 to July 2026. The interest conditions of this revolving credit
facility (RCF) are also linked to the achievement of the Group's emission reduction
targets confirmed by the Science Based Targets Initiative (SBTi). With the review
and confirmation of the ambitious emission reduction targets by the SBTi, TUI is
setting new standards in the tourism sector. Both the rights issue and RCF
extension are significant measures to improve our credit metrics and restore our
balance sheet strength. As a result we have seen a first improvement in our credit
rating during the quarter, with S&P upgrading in April to B and Moody’s upgrading
in May to B2 both with a positive outlook.
FY23 Assumptions^2 – We reconfirm our expectations to increase underlying EBIT
significantly for financial year 2023.
Mid-term ambitions – We are focused on operational excellence and execution. We
have a clear strategy to accelerate profitable market growth with new customer
segments and more product sales. Our mid-term 2025/26 ambitions are for underlying
EBIT to significantly build on €1.2bn^3. We have a target to return to a gross
leverage ratio^4 of well below 3.0x and aim to return to a credit rating in line
with the pre-pandemic rating of BB / Ba territory.
^1 Details on our strategy see TUI Group Annual Report 2022 from page 23
^2 Based on constant currency.
^3 FY 2019 underlying EBIT of €893m including €293m Boeing Max cost impact
^4 Defined as gross debt (Financial liabilities incl. lease liabilities and net
pension obligation) divided by reported EBITDA
Consolidated earnings
Revenue
Q3 2023 Q3 2022 Var. % 9M 2023 9M 2022 Var. %
€ million adjusted adjusted
Hotels & Resorts 258.2 259.5 - 0.5 687.4 638.8 + 7.6
Cruises 164.6 103.3 + 59.3 421.7 178.8 + 135.9
TUI Musement 216.1 171.3 + 26.2 506.1 316.9 + 59.7
Holiday Experiences 638.9 534.1 + 19.6 1,615.2 1,134.5 + 42.4
Northern Region 1,992.7 1,762.8 + 13.0 4,527.3 3,262.9 + 38.7
Central Region 1,861.2 1,451.9 + 28.2 4,237.1 3,062.7 + 38.3
Western Region 792.2 683.2 + 15.9 1,804.8 1,465.5 + 23.2
Markets & Airlines 4,645.9 3,897.9 + 19.2 10,569.1 7,791.1 + 35.7
All other segments 1.2 1.2 - 3.2 5.0 5.2 - 2.9
TUI Group 5,286.0 4,433.2 + 19.2 12,189.4 8,930.8 + 36.5
TUI Group (at
constant currency) 5,333.0 4,433.2 + 20.3 12,315.3 8,930.8 + 37.9
Underlying EBIT
Q3 2023 Q3 2022 Var. % 9M 2023 9M 2022 Var. %
€ million adjusted adjusted
Hotels & Resorts 112.5 104.9 + 7.3 262.2 189.7 + 38.2
Cruises 64.0 3.0 n. a. 79.0 - 102.3 n. a.
TUI Musement 13.1 13.3 - 1.6 - 13.1 - 18.1 + 27.9
Holiday Experiences 189.7 121.2 + 56.5 328.1 69.2 + 373.9
Northern Region - 1.1 - 93.1 + 98.9 - 270.6 - 445.7 + 39.3
Central Region 8.8 20.3 - 56.8 - 122.4 - 62.4 - 96.0
Western Region - 1.0 - 70.2 + 98.6 - 103.9 - 159.5 + 34.9
Markets & Airlines 6.3 - 143.0 n. a. - 496.9 - 667.7 + 25.6
All other segments - 26.6 - 5.2 - 408.0 - 57.2 - 32.0 - 78.5
TUI Group 169.4 - 27.0 n. a. - 225.9 - 630.5 + 64.2
TUI Group (at
constant currency) 170.7 - 27.0 n. a. - 244.8 - 630.5 + 61.2
EBIT
Q3 2023 Q3 2022 Var. % 9M 2023 9M 2022 Var. %
€ million adjusted adjusted
Hotels & Resorts 104.1 104.8 - 0.7 253.4 211.6 + 19.7
Cruises 64.0 3.0 n. a. 79.0 - 102.3 n. a.
TUI Musement 11.3 10.6 + 7.3 - 17.1 - 24.7 + 30.8
Holiday Experiences 179.5 118.4 + 51.6 315.2 84.6 + 272.7
Northern Region 87.0 - 97.0 n. a. - 187.4 - 457.7 + 59.1
Central Region 8.3 12.1 - 31.4 - 123.2 - 88.0 - 40.0
Western Region - 1.7 - 71.1 + 97.7 - 104.4 - 161.8 + 35.5
Markets & Airlines 93.2 - 156.0 n. a. - 415.0 - 707.5 + 41.3
All other segments - 97.3 - 4.9 n. a. - 131.1 - 34.1 - 284.6
TUI Group 175.4 - 42.5 n. a. - 230.8 - 657.0 + 64.9
TUI Group (at constant
currency) 183.1 - 42.5 n. a. - 243.3 - 657.0 + 63.0
Segmental performance
Holiday Experiences
Q3 2023 Q3 2022 Var. % 9M 2023 9M 2022 Var. %
€ million adjusted adjusted
Revenue 638.9 534.1 + 19.6 1,615.2 1,134.5 + 42.4
Underlying EBIT 189.7 121.2 + 56.5 328.1 69.2 + 373.9
Underlying EBIT at
constant currency 194.0 121.2 + 60.1 337.8 69.2 + 387.8
Hotels & Resorts
€ million Q3 2023 Q3 2022 Var. % 9M 2023 9M 2022 Var. %
Total revenue^1 456.7 385.2 + 18.6 1,199.6 909.8 + 31.9
Revenue 258.2 259.5 - 0.5 687.4 638.8 + 7.6
Underlying EBIT 112.5 104.9 + 7.3 262.2 189.7 + 38.2
Underlying EBIT at
constant currency 114.6 104.9 + 9.3 267.5 189.7 + 41.0
Available bed nights^2
('000) 10,908 10,711 + 1.8 26,473 26,234 + 0.9
Riu 3,611 3,514 + 2.8 10,023 10,004 + 0.2
Robinson 1,062 1,046 + 1.5 2,534 2,367 + 7.0
Blue Diamond 1,525 1,363 + 11.9 4,489 4,030 + 11.4
Occupancy^3 (%, variance
in % points) 79 74 + 5 79 68 + 11
Riu 89 88 + 1 89 77 + 12
Robinson 66 61 + 5 67 59 + 8
Blue Diamond 81 82 - 1 84 78 + 6
Average daily rate^4 (€) 80 73 + 9.3 87 76 + 15.1
Riu 71 63 + 12.7 77 66 + 16.0
Robinson 98 94 + 3.7 102 101 + 1.6
Blue Diamond 150 140 + 7.3 156 134 + 16.0
Revenue includes fully consolidated companies, all other KPIs incl. companies
measured at equity
^1 Total revenue includes
intra-Group revenue
^2 Number of hotel days open multiplied by beds available (Group owned and leased
hotels)
^3 Occupied beds divided by available beds (Group owned and leased hotels)
^4 Board and lodging revenue divided by occupied bed nights (Group owned and leased
hotels)
9M 2023 total revenue in our Hotels & Resorts segment increased to €1,199.6m, up
€289.8m year-on-year (9M 2022: €909.8m). 9M underlying EBIT for the segment of
€262.2m improved by €72.5m year-on-year (9M 2022: €189.7m).
Q3 2023 total revenue for the segment grew to €456.7m, an increase of 19%
year-on-year (Q3 2022: €385.2m) supported by higher bed nights and rates across our
portfolio of brands. Q3 underlying EBIT of €112.5m, was €7.7m ahead year-on-year
(Q3 2022: €104.9m) and ahead of an already strong prior year quarter and achieving
a fifth consecutive quarter above 2019 levels, underlining the continuing strong
performance of this segment post pandemic. Results were driven by an improved
operational performance for Riu as well as Robinson and were supported by higher
occupancies and rates.
In the Q3 period, we offered 10.9m available bed nights (capacity), an increase of
2% on 10.7m in Q3 2022. The overall occupancy rate for the segment increased across
all our key brands by a total of 5%pts year-on-year to 79%, Again the Canaries,
Balearics, Turkey, Greece and Cape Verde proved to be popular summer destinations
for both Markets & Airlines and third-party customers. Our year-round hotel
offering across the Caribbean delivered average occupancy rates of 90% at high
capacity levels, with Mexico being our most popular destination, achieving 94%
average occupancy in the quarter.
Q3 2023 average daily rate in the segment rose by 9% year-on-year to €80 with rates
higher in all our key destinations and in particular in the Caribbean. Riu’s
average daily rate increased by 13% to €71 (Q3 2022: €63) and Blue Diamond’s
average daily rate rose by 7% to €150 (Q3 2022: €140). Robinson achieved an average
daily rate of €98, up 4% versus prior year (Q3 2022: €94).
Future content growth in our Hotels & Resorts segment will be delivered both
through our well-known hotel brands in existing and new destinations, as well as
introducing new brands to complement our portfolio. This growth will be achieved in
accordance with our asset-right strategy. Following the announcement in the
previous quarter of our expansion plans for TUI Blue, we are now announcing the
creation of a new off-balance sheet joint venture with Riu. This targets realising
unique opportunities to invest into growth, whilst limiting the financial impact on
TUI’s leverage and net investments. In addition, the TUI initiated global
Hansainvest hotel fund is successfully executing its first two hotel investments on
Zanzibar and on Cape Verde. Here, TUI is providing hotel management and investment
advisory services to support our asset-light growth development.
Cruises
Q3 2023 Q3 2022 Var. % 9M 2023 9M Var. %
€ million 2022
Revenue^1 +
164.6 103.3 + 59.3 421.7 178.8 135.9
Underlying EBIT -
64.0 3.0 n. a. 79.0 102.3 n. a.
Underlying EBIT at -
constant currency 64.1 3.0 n. a. 78.6 102.3 n. a.
Available passenger
cruise days^2 ('000)
Mein Schiff 1,438 1,579 - 8.9 4,661 4,019 + 16.0
Hapag-Lloyd Cruises 147 137 + 7.6 441 388 + 13.6
Marella Cruises 717 656 + 9.3 1,965 1,397 + 40.6
Occupancy^3 (%,
variance in % points)
Mein Schiff 98 70 + 28 93 59 + 34
Hapag-Lloyd Cruises 73 57 + 15 69 50 + 19
Marella Cruises 95 70 + 25 94 59 + 35
Average daily rate
(€)
Mein Schiff^4 191 188 + 1.4 154 166 - 6.8
Hapag-Lloyd Cruises^4 706 619 + 14.1 718 611 + 17.5
Marella Cruises^5 (in
£) 178 160 + 11.3 173 155 + 11.7
^1 No revenue is carried for Mein Schiff and Hapag-Lloyd Cruises as the joint
venture TUI Cruises is consolidated at equity
^2 Number of operating days multiplied by berths available on the operated ships.
This key figure has changed compared to previous periods
^3 Achieved passenger cruise days divided by available passenger cruise days
^4 Ticket revenue divided by achieved passenger cruise
days
^5 Revenue (stay on ship inclusive of transfers, flights and hotels due to the
integrated nature of Marella Cruises) divided by achieved passenger cruise days
The Cruises segment comprises the joint venture TUI Cruises in Germany, which
operates cruise ships under the brands Mein Schiff and Hapag-Lloyd Cruises, and
Marella Cruises in UK. The segment operated a full fleet of 16 ships in the third
quarter in line with Q3 2022 when the segment was able to return to normal
operations after COVID-19 restrictions were lifted. During the quarter Mein Schiff
Herz transferred from TUI Cruises to Marella and after refurbishment the newly
named Marella Voyager returned to service at the beginning of June for the summer
season.
9M 2023 Cruises revenue only includes Marella Cruises, as TUI Cruises is accounted
for using the equity method. Revenue grew to €421.7m, a significant improvement of
€242.9m year-on-year (9M 2022: €178.8m). 9M 2023 underlying EBIT for the segment
(including the equity result of TUI Cruises) was €79.0m, up €181.3m year-on-year
(9M 2022: €-102.3m loss).
Q3 2023 revenue reflecting Marella Cruises solely, increased to €164.6m, up €61.3m
year-on-year (Q3 2022: €103.3m). Q3 2023 underlying EBIT for the segment (including
the equity result of TUI Cruises), was €64.0m, an improvement of €61.1m (Q3 2022:
€3.0m) with all of our three Cruise brands contributing to the positive EBIT
development boosted by increased volumes as well as higher occupancies. The Cruises
business continues to recover post pandemic with this now being the fifth
consecutive positive quarter for the segment with TUI Cruises achieving Q3 2023 EAT
(earnings after tax) of €47m, a significant increase of €34m year-on-year (Q3 2022:
€13m).
Mein Schiff – Mein Schiff operated their full fleet of six ships at the end of the
quarter against seven ships in the previous year following the transfer of Mein
Schiff Herz to Marella Cruises during the quarter. The brand offered itineraries to
the Mediterranean, Northern Europe and Asia. At €191, the average daily rate was 1%
above prior year (Q3 2022: €188) and virtually in line with pre-pandemic levels (Q3
2019: 190€). Occupancy of the operated fleet in Q3 2023 of 98% was significantly
ahead of prior year (Q3 2022: 70%) and moving close to the peaks seen in FY2019,
underlining the strong demand for our German language, premium all-inclusive
product.
Hapag-Lloyd Cruises – Our luxury and expeditions cruise brand, offering itineraries
to Europe, Asia, the America’s as well as voyages to the Artic during the quarter.
As in the previous year, the brand operated all five ships in Q3 2023. Q3 average
daily rate was €706, an increase of 14% on prior year (Q3 2022: €619) and well
above pre-pandemic levels (Q3 2019: €577). Q3 occupancy of the fleet was 73% (Q3
2022: 57%), highlighting the popularity of these cruises post pandemic.
Marella Cruises – Our UK cruise brand offered itineraries to the Mediterranean, the
Caribbean and North America in Q3. With Marella Voyager supplementing the fleet,
the brand operated a full fleet of five ships towards the end of the quarter
against four ships in the previous year. The business achieved an average daily
rate of £178 up 11% year-on-year (Q3 2022: £160) and well above the pre-pandemic
level of £144, driven in particular by the expansion of the fleet and itineraries
to the Eastern Mediterranean. Occupancy also improved significantly to 95%, versus
a prior year Q3 of 70%.
TUI Musement
Q3 2023 Q3 2022 Var. % 9M 2023 9M 2022 Var. %
€ million adjusted adjusted
Total revenue^1 332.1 262.9 + 26.3 732.5 472.2 + 55.1
Revenue 216.1 171.3 + 26.2 506.1 316.9 + 59.7
Underlying EBIT 13.1 13.3 - 1.6 - 13.1 - 18.1 + 27.9
Underlying EBIT at
constant currency 15.3 13.3 + 14.6 - 8.4 - 18.1 + 53.9
^1 Total revenue
includes intra-Group
revenue
In TUI Musement, our Tours and Activities business, 9M 2023 revenue of €506.1m, was
up €189.2m year-on-year (9M 2022: €316.9m). 9M underlying EBIT loss of €-13.1m
improved against prior year (9M 2022: €-18.1m loss).
Q3 2023 revenue of €216.1m, was €44.8m and therefore 26% higher year-on-year
(Q3 2022: €171.3m) highlighting the significant growth in this segment and the
advantage of our integrated model as well as growth of third-party sales through
the TUI Musement platform. Underlying EBIT of €13.1m was in line with prior year
(Q3 2022: €13.3m). The business continues to focus on its B2C offering driving
growth of Experiences sales directly to the consumer and through B2B, as well as
focusing on profitability by growing the differentiated own product portfolio
globally.
During the quarter, TUI Musement benefited from increased guest transfers due to a
higher number of tour operator guests, providing 8.2m transfers in the
destinations, 1.0m more than in the same quarter last year (Q3 2022: 7.2m). In
addition, 2.7m Experiences were sold across our global destinations, up 0.7m and
33% (year-on-year (Q3 2022: 2.0m) as the significant expansion of our business in
this segment continued.
Markets & Airlines
€ million Q3 2023 Q3 2022 Var. % 9M 2023 9M 2022 Var. %
adjusted adjusted
Revenue 4,645.9 3,897.9 + 19.2 10,569.1 7,791.1 + 35.7
Underlying EBIT 6.3 - 143.0 n. a. - 496.9 - 667.7 + 25.6
Underlying EBIT at
constant currency 3.4 - 143.0 n. a. - 525.3 - 667.7 + 21.3
Direct distribution
mix^1
(in %, variance in %
points) 76 78 - 2 76 78 - 2
Online mix^2
(in %, variance in %
points) 52 55 - 3 52 55 - 3
Customers ('000) 5,514 5,069 + 8.8 11,257 9,215 + 22.2
^1 Share of sales via own channels (retail and online)
^2 Share of online sales
9M 2023 revenue of €10,569.1m, was up €2,778.0m or 35.7% year-on-year (9M 2022:
€7,791.1m). 9M underlying EBIT of €-496.9m, an improvement of €170.9m year-on-year
(9M 2022: €-667.7m loss) supported in particular by results in Q3. The prior year
results were impacted by operational flight disruptions encountered during May and
June 2022 totaling €75m. This was mainly caused by third party suppliers and
airports due to a shortage in ground handling and airports security staff,
reliability issues with lease-in partners and supplier maintenance delays.
Q3 2023 revenue of €4,645.9m, increased €748.0m or 19.2% year-on-year (Q3 2022:
€3,897.9m). The Q3 underlying EBIT profit of €6.3m was up significantly by €149.3m
year-on-year (Q3 2022: €-143.0m loss) whereby the prior year included €75m of costs
from flight disruptions. The improvement was driven in particular by higher prices
and good demand for our wide and varied product offering. Traditional short- and
medium-haul destinations such as the Canaries and Egypt were again popular amongst
customers, with long-haul destinations such as Mexico and the Dominican Republic
also in good demand.
A total of 5,514k customers departed in Q3 2023, an increase of 445k customers
versus Q3 2022.
Northern Region
€ million Q3 2023 Q3 2022 Var. % 9M 2023 9M 2022 Var. %
Revenue 1,992.7 1,762.8 + 13.0 4,527.3 3,262.9 + 38.7
Underlying EBIT - 1.1 - 93.1 + 98.9 - 270.6 - 445.7 + 39.3
Underlying EBIT at
constant currency - 4.1 - 93.1 + 95.5 - 294.9 - 445.7 + 33.8
Direct distribution mix^1
(in %, variance in %
points) 94 94 - 93 94 - 1
Online mix^2
(in %, variance in %
points) 69 71 - 2 68 71 - 3
Customers ('000) 2,219 2,095 + 5.9 4,373 3,511 + 24.5
^1 Share of sales via own channels (retail and online)
^2 Share of online sales
9M 2023 revenue of €4,527.3m, which was up €1,264.4m year-on-year (9M 2022:
€3,262.9m). 9M underlying EBIT loss for the region of €-270.6m improved by €175.2m
year-on-year (9M 2022: €-445.7m loss).
Northern Region reported Q3 2023 revenue of €1,992.7m, which was up €229.9m
year-on-year (Q3 2022: €1,762.8m). Q3 2023 underlying EBIT loss for the region of
€-1.1m improved by €92.0m year-on-year (Q3 2022: €-93.1m loss) driven by improved
margins and the absence of flight disruptions as in the prior year.
Q3 2023 customer volumes increased by 5.9% to 2,219k versus 2,095k guests in Q3
2022 underlining the popularity of the summer season offering. Online distribution
remained strong at 69% and well up on pre-pandemic levels (Q3 2019: 66%), but were
down 2%pts against prior year (Q3 2022: 71%), as retail shop sales continued their
recovery post pandemic. Direct distribution was at 94% in line with prior year (Q3
2022: 94%) and pre-pandemic levels (Q3 2019: 94%).
Central Region
Q3 2023 Q3 2022 Var. % 9M 2023 9M 2022 Var. %
€ million adjusted adjusted
Revenue 1,861.2 1,451.9 + 28.2 4,237.1 3,062.7 + 38.3
Underlying EBIT 8.8 20.3 - 56.8 - 122.4 - 62.4 - 96.0
Underlying EBIT at
constant currency 8.7 20.3 - 57.3 - 124.2 - 62.4 - 98.9
Direct distribution
mix^1
(in %, variance in %
points) 56 58 - 2 55 57 - 2
Online mix^2
(in %, variance in %
points) 30 31 - 1 30 31 - 1
Customers ('000) 2,009 1,716 + 17.1 4,071 3,191 + 27.6
^1 Share of sales via own channels (retail and online)
^2 Share of online sales
9M 2023 revenue of €4,237.1m, was up €1,174.3m year-on-year (9M 2022: €3,062.7m),
with an underlying EBIT loss for the region of €-122.4m, up €59.9m against last
year (9M 2022: €-62.4m loss).
Q3 2023 revenue of €1,861.2m, improved €409.3m 28.2 %year-on-year (Q3 2022:
€1,451.9m) whilst the underlying EBIT result for the region of €8.8m, was €11.5m
lower year-on-year (Q3 2022: €20.3m). The improvement in operational performance
especially in Germany was generated by higher volumes and prices. This was offset
year-on-year by negative valuation effects from ineffective hedge positions.
Customer volumes increased by 17.1% to 2,009k versus prior year (previous year
1,716k) reflecting in particular the significant recovery in customer bookings in
the region. Online distribution for Central Region reached 30%, and thus virtually
in line with the 31%pts in the prior year. Against pre-pandemic levels, online
distribution was up by 6%pts (Q3 2019: 24%), emphasising the strong development of
our online offering in this region in line with consumer demand. Direct
distribution reduced 2%pts to 56% against Q3 2022 of 58% but ahead versus
pre-pandemic levels (Q3 2019: 53%).
Western Region
€ million Q3 2023 Q3 2022 Var. % 9M 2023 9M 2022 Var. %
Revenue 792.2 683.2 + 15.9 1,804.8 1,465.5 + 23.2
Underlying EBIT - 1.0 - 70.2 + 98.6 - 103.9 - 159.5 + 34.9
Underlying EBIT at
constant currency - 0.7 - 70.2 + 99.0 - 106.1 - 159.5 + 33.5
Direct distribution mix^1
(in %, variance in %
points) 76 80 - 4 77 81 - 4
Online mix^2
(in %, variance in %
points) 55 60 - 5 58 62 - 4
Customers ('000) 1,285 1,259 + 2.1 2,813 2,513 + 11.9
^1 Share of sales via own channels (retail and online)
^2 Share of online sales
In Western Region 9M 2023 revenue of €1,804.8m, rose €339.3m year-on-year (9M 2022:
€1,465.5m). 9M underlying EBIT loss of €-103.9m, decreased by €55.7m year-on-year
(9M 2022: €-159.5m loss).
Q3 2023 revenue of €792.2m, was up €108.9m year-on-year (Q2 2022: €683.2m). Q3
underlying EBIT loss of €-1.0m, improved by €69.2m year-on-year (Q3 2022:
€-70.2m loss). This was driven in particular by an improved operational performance
in both Belgium and the Netherlands supported by the absence of the flight delays
and cancellations due to disruptions in particular at Schiphol Airport encountered
in the prior year.
Customer volumes increased by 2.1% to 1,285k guests year-on-year (Q3 2022: 1,259k).
Online distribution for region stood at 55%, 5%pts below prior year but virtually
in line with pre-pandemic levels (Q3 2019: 56 %). Direct distribution was down
4%pts to 76% versus last year (Q3 2022: 80%) but in line with pre-pandemic levels
(Q3 2019: 76%).
All other segments
Q3 2023 Q3 2022 Var. % 9M 2023 9M 2022 Var. %
€ million adjusted adjusted
Revenue 1.2 1.2 - 3.2 5.0 5.2 - 2.9
Underlying EBIT - 26.6 - 5.2 - 408.0 - 57.2 - 32.0 - 78.5
Underlying EBIT at
constant currency) - 26.7 - 5.2 - 410.6 - 57.4 - 32.0 - 79.1
9M 2023 underlying EBIT loss of €-57.2m, increased €25.1m year-on-year (9M 2022:
€-32.0m loss) and Q3 2023 underlying EBIT loss of €-26.6m, increased by €21.4m
year-on-year (Q3 2022: €-5.2m loss).
Cash Flow / Net debt / Net capex and investments
In the first nine months of financial year 2023, TUI Group’s business volume was
significantly higher than in 9M 2022 which was still impacted by measures to
contain the spread of COVID-19. TUI Group’s results generally also reflect the
significant seasonal swing in tourism between the winter and summer travel months.
TUI Group's operating cash inflow in 9M 2023 of €1,079.6m decreased by €891.0m
compared to previous year, which was characterised by normalising business volumes
and thus the one-time rebound of customer prepayments to a normal level following
the gradual lifting of the COVID-19 travel restrictions in 2022.
Net debt position as at 30 June 2023 of €-2.2bn was down €1.1bn compared to
previous year level (30 June 2022: €-3.3bn). This improvement is driven by net
proceeds (following repayment of the final WSF obligations) from our capital
increase in April 2023 and a positive free cash flow.
Net debt
€ million 30 Jun 2023 30 Jun 2022 Var. %
Financial debt 1,470.0 1,781.5 - 17.5
Lease liabilities 2,919.5 3,231.3 - 9.6
Cash and cash equivalents 2,169.1 1,583.4 + 37.0
Short-term interest-bearing investments 48.5 115.5 - 58.0
Net debt -2,171.9 -3,314.1 + 34.5
Net capex and investments
Q3 2023 Q3 2022 Var. % 9M 2023 9M 2022 Var. %
€ million adjusted adjusted
Cash gross capex
Hotels & Resorts 44.0 67.7 - 35.0 177.4 123.7 + 43.4
Cruises 24.8 8.0 + 210.0 68.6 36.3 + 89.0
TUI Musement 6.7 6.9 - 2.9 19.7 17.9 + 10.1
Holiday Experiences 75.5 82.6 - 8.6 265.6 177.9 + 49.3
Northern Region 6.7 6.1 + 9.8 17.9 18.9 - 5.3
Central Region 4.2 4.0 + 5.0 10.4 9.1 + 14.3
Western Region 5.5 1.0 + 450.0 17.1 4.4 + 288.6
Markets & Airlines* 23.1 70.5 - 67.2 72.6 94.5 - 23.2
All other segments 37.9 27.3 + 38.8 103.3 77.3 + 33.6
TUI Group 136.6 180.4 - 24.3 441.5 349.7 + 26.3
Net pre delivery
payments on aircraft - 11.4 - 17.3 + 34.1 23.6 - 61.9 n. a.
Financial investments 0.1 0.3 - 66.7 0.4 0.3 + 33.3
Divestments - 33.0 - 11.4 - 189.5 - 155.5 0.6 n. a.
Net capex and
investments 92.3 152.0 - 39.3 310.1 288.7 + 7.4
* Including €6.7m for Q3 2023 (Q3 2022: €59.4m) and €27.2m for 9M 2023 (9M 2022:
€62.1m ) cash gross capex of the aircraft leasing companies, which are allocated to
Markets & Airlines as a whole, but not to the individual segments Northern Region,
Central Region and Western Region.
Cash gross capex in 9M 2023 was €91.8m higher year-on-year. This increase was due,
amongst others, to higher investments in Hotels & Resorts, the IT and the airline
sector and at Marella for the refurbishment of Mein Schiff Herz prior to its
commissioning for the UK market. Net capex and investments of €310.1m increased by
€21.4m year-on-year. The divestments include an inflow of €71m from the sale of the
stakes in RIU Hotels S.A. in financial year 2021 as well as an inflow from the sale
of the non-consolidated share in Peakwork AG.
Consolidated income statement
Unaudited condensed consolidated Income Statement of TUI AG for the period from 1
Oct 2022 to 30 June 2023
€ million Q3 2023 Q3 2022 Var. % 9M 2023 9M 2022 Var. %
Revenue 5,286.0 4,433.2 +19.2 12,189.4 8,930.8 +36.5
Cost of sales 5,018.4 4,313.4 +16.3 11,908.2 9,047.8 +31.6
Gross profit / loss 267.5 119.8 +123.3 281.2 - 117.0 n. a.
Administrative
expenses 253.1 189.6 +33.5 746.5 566.6 +31.8
Other income 3.2 3.3 - 3.0 14.9 34.1 - 56.3
Other expenses 32.3 2.2 n. a. 37.0 3.7 +900.0
Impairment (+) /
Reversal of impairment
(-) of financial
assets 5.8 - 3.3 n. a. 9.3 - 7.8 n. a.
Financial income 22.2 4.6 +382.6 60.5 30.5 +98.4
Financial expense 142.9 127.2 +12.3 427.8 408.5 +4.7
Share of result of
investments accounted
for using the equity
method 185.0 26.4 +600.8 259.0 - 9.2 n. a.
Earnings before income
taxes 47.0 - 161.6 n. a. - 601.8 - 1,032.6 +41.7
Income taxes (expense
(+), income (-)) - 5.5 169.6 n. a. - 96.3 6.5 n. a.
Group profit / loss 52.5 - 331.2 n. a. - 505.5 - 1,039.1 +51.4
Group profit / loss
attributable to
shareholders of TUI AG 22.6 - 356.7 n. a. - 597.8 - 1,076.7 +44.5
Group profit / loss
attributable to
non-controlling
interest 29.8 25.5 +16.9 92.3 37.5 +146.1
Cash flow statement
Unaudited consolidated Cash Flow Statement of TUI AG for the period from 1 Oct 2022
to 30 June 2023
€ million 9M 2023 9M 2022
Group loss - 505.6 - 1,039.1
Depreciation, amortisation and impairment (+) / write-backs
(-) 692.1 642.8
Other non-cash expenses (+) / income (-) - 256.9 30.9
Interest expenses 419.7 394.9
Dividends from joint ventures and associates 14.3 0.2
Profit (-) / loss (+) from disposals of non-current assets 22.7 - 28.7
Increase (-) / decrease (+) in inventories - 16.8 - 18.8
Increase (-) / decrease (+) in receivables and other assets - 802.7 - 1,421.4
Increase (+) / decrease (-) in provisions - 308.3 - 90.1
Increase (+) / decrease (-) in liabilities (excl. financial
liabilities) 1,821.1 3,499.9
Cash inflow / cash outflow from operating activities 1,079.6 1,970.6
Payments received from disposals of property, plant and
equipment and intangible assets 95.8 112.6
Payments received/made from disposals of consolidated
companies
(less disposals of cash and cash equivalents due to
divestments) - 0.7 - 2.2
Payments received/made from disposals of other non-current
assets 99.1 - 20.1
Payments made for investments in property, plant and
equipment and intangible assets - 502.1 - 376.5
Payments made for investments in other non-current assets - 2.1 - 0.3
Cash inflow / cash outflow from investing activities - 310.0 - 286.5
Payments received from capital increase by issuing new shares 1,764.1 1,522.9
Payments made for repayment of the silent participation - - 671.0
Payments made for the repurchase of equity instruments - 682.4 -
Dividends
Coupon on silent participation - 16.8 - 51.0
Subsidiaries to non-controlling interest - 25.6 -
Payments received from the raising of financial liabilities 179.2 47.2
Payments made for redemption of loans and financial
liabilities - 742.7 - 1,774.4
Payments made for principal of lease liabilities - 475.2 - 437.5
Interest paid - 341.2 - 298.7
Cash inflow / cash outflow from financing activities - 340.6 - 1,662.4
Net change in cash and cash equivalents 428.9 21.7
Development of cash and cash equivalents
Cash and cash equivalents at beginning of period 1,736.9 1,586.1
Change in cash and cash equivalents due to exchange rate
fluctuations 3.3 - 24.4
Net change in cash and cash equivalents 428.9 21.7
Cash and cash equivalents at end of period 2,169.1 1,583.4
Financial position
Unaudited condensed consolidated Statement of Financial Position of TUI AG as at 30
Jun 2023
€ million 30 Jun 2023 30 Sep 2022
Assets
Goodwill 2,957.8 2,970.6
Other intangible assets 489.6 507.6
Property, plant and equipment 3,476.7 3,400.9
Right-of-use assets 2,770.6 2,971.5
Investments in joint ventures and
associates 991.7 785.4
Trade and other receivables 114.4 131.6
Derivative financial instruments 4.6 26.6
Other financial assets 11.1 10.6
Touristic payments on account 143.7 138.0
Other non-financial assets 101.9 169.7
Income tax assets 17.2 17.2
Deferred tax assets 418.4 222.0
Non-current assets 11,497.7 11,351.7
Inventories 73.9 56.1
Trade and other receivables 1,258.0 1,011.8
Derivative financial instruments 27.8 232.5
Other financial assets 48.5 85.8
Touristic payments on account 1,494.5 619.6
Other non-financial assets 120.5 135.4
Income tax assets 32.1 23.1
Cash and cash equivalents 2,169.1 1,736.9
Assets held for sale 39.7 2.7
Current assets 5,264.0 3,903.8
Total assets 16,761.7 15,255.5
Unaudited condensed consolidated Statement of Financial Position of TUI AG as at 30
Jun 2023
€ million 30 Jun 2023 30 Sep 2022
Equity and liabilities
Subscribed capital 507.4 1,785.2
Capital reserves 9,093.2 6,085.9
Revenue reserves - 9,671.7 - 8,432.7
Silent participation - 420.0
Equity before non-controlling interest - 71.0 - 141.6
Non-controlling interest 854.7 787.3
Equity 783.7 645.7
Pension provisions and similar
obligations 601.7 568.2
Other provisions 741.8 755.0
Non-current provisions 1,343.5 1,323.2
Financial liabilities 1,197.1 1,731.4
Lease liabilities 2,221.5 2,508.7
Derivative financial instruments 5.4 3.2
Other financial liabilities 2.6 2.8
Other non-financial liabilities 243.2 165.2
Income tax liabilities 11.1 11.1
Deferred tax liabilities 63.5 121.2
Non-current liabilities 3,744.3 4,543.8
Non-current provisions and liabilities 5,087.8 5,867.0
Pension provisions and similar
obligations 30.8 33.1
Other provisions 375.9 541.0
Current provisions 406.7 574.2
Financial liabilities 272.9 319.9
Lease liabilities 698.0 698.8
Trade payables 2,628.3 3,316.5
Derivative financial instruments 225.7 57.5
Other financial liabilities 133.5 174.6
Touristic advance payments received 5,974.6 2,998.9
Other non-financial liabilities 495.1 519.9
Income tax liabilities 55.3 82.3
Current liabilities 10,483.5 8,168.6
Current provisions and liabilities 10,890.2 8,742.7
Total equity, liabilities and
provisions 16,761.7 15,255.5
Alternative performance measures
The Group’s main financial KPI is underlying EBIT. We define the EBIT in underlying
EBIT as earnings before interest, income taxes and expenses for the measurement of
the Group’s interest hedges. EBIT by definition includes goodwill impairments.
One-off items carried here include adjustments for income and expense items that
reflect amounts and frequencies of occurrence rendering an evaluation of the
operating profitability of the segments and the Group more difficult or causing
distortions. These items include gains on disposal of financial investments,
significant gains and losses from the sale of assets as well as significant
restructuring and integration expenses. Any effects from purchase price
allocations, ancillary acquisition costs and conditional purchase price payments
are adjusted. Also, any goodwill impairments are adjusted in the reconciliation to
underlying EBIT.
Reconciliation to
underlying EBIT
€ million Q3 2023 Q3 2022 Var. % 9M 2023 9M 2022 Var. %
Earnings before income
taxes 47.0 - 161.6 n. a. - 601.8 - 1,032.6 +41.7
plus: Net interest
expenses (excluding
expense / income from
measurement of interest
hedges) 120.7 130.6 - 7.6 353.8 384.4 - 8.0
plus: (Income) expense
from measurement of
interest hedges 7.7 - 11.5 n. a. 17.2 - 8.8 n. a.
EBIT 175.4 - 42.5 n. a. - 230.8 - 657.0 +64.9
Adjustments:
less / plus: Separately
disclosed items - 11.7 8.3 - 13.4 5.0
plus: Expense from
purchase price
allocation 5.7 7.2 18.4 21.5
Underlying EBIT 169.4 - 27.0 n. a. - 225.9 - 630.5 +64.2
The TUI Group’s operating loss adjusted for special items decreased by €404.6m to
€-225.9m in the first nine months 2023.
The adjusted net income totaling €13.4m in the first nine months 2023 includes in
particular a positive gain on disposal from the sale of the tour operator business
by Sunwing Travel Group Inc., Ontario, which is accounted for using the equity
method, in Northern Region as well as subsequent expenses from a company disposal
in previous years in Hotels & Resorts. These were offset by adjusted restructuring
expenses in various segments, including in particular an impairment loss on
self-generated software in All other segments.
The adjusted net expenses totaling €5.0m in the first nine months 2022 include
restructuring expenses in the Northern Region, Central Region and TUI Musement as
well as income from the sale of the shares in Nordotel S.A., fully consolidated in
Hotels & Resorts, to Grupotel S.A., a joint venture of TUI Group. In addition, an
adjustment was made for expenses from the revaluation of a purchase price
receivable.
Expenses for purchase price allocations of €18.4m (previous year: €21.5m) relate in
particular to the amortisation of intangible assets from acquisitions made in
previous years.
Key figures of income statement
Q3 Q3 9M Var.
€ million 2023 2022 Var. % 2022 9M 2022 %
+
EBITDAR 453.1 175.8 157.8 481.7 1.7 n. a.
-
Operating rental expenses - 7.1 - 4.5 - 56.5 - 20.5 - 16.0 28.1
+
EBITDA 446.0 171.2 160.4 461.3 - 14.2 n. a.
Depreciation/amortisation less - - -
reversals of depreciation* 270.6 213.8 - 26.6 692.1 - 642.8 - 7.7
- +
EBIT 175.4 - 42.5 n. a. 230.8 - 657.0 64.9
Income/Expense from the
measurement of interest hedges 7.7 - 11.5 n. a. 17.2 - 8.8 n. a.
Net interest expense
(excluding expense/income from
measurement of interest
hedges) 120.7 130.6 - 7.6 353.8 384.4 - 8.0
- - - +
EBT 47.0 161.6 n. a. 601.8 1,032.6 41.7
* on property, plant and equipment, intangible assets, right of use assets and
other assets
Other segment indicators
Underlying EBITDA
Q3 2023 Q3 2022 Var. % 9M 2023 9M 2022 Var. %
€ million adjusted adjusted
Hotels & Resorts 158.1 147.9 + 6.9 403.4 322.8 + 25.0
Cruises 82.8 20.7 + 299.8 133.8 - 49.8 n. a.
TUI Musement 19.8 19.6 + 0.9 5.9 0.1 n. a.
Holiday Experiences 260.8 188.2 + 38.6 543.1 273.1 + 98.9
Northern Region 69.4 - 10.9 n. a. - 47.4 - 212.9 + 77.7
Central Region 32.7 46.0 - 28.9 - 48.6 20.0 n. a.
Western Region 32.9 - 34.8 n. a. 1.0 - 55.2 n. a.
Markets & Airlines 134.8 0.3 n. a. - 94.8 - 248.1 + 61.8
All other segments - 28.9 - 7.8 - 272.9 - 66.3 - 32.7 - 102.9
TUI Group 366.6 180.8 + 102.8 382.0 - 7.7 n. a.
EBITDA
Q3 2023 Q3 2022 Var. % 9M 2023 9M 2022 Var. %
€ million adjusted adjusted
Hotels & Resorts 149.7 147.8 + 1.3 394.6 344.7 + 14.5
Cruises 82.8 20.7 + 299.8 133.8 - 49.8 n. a.
TUI Musement 19.8 18.7 + 6.3 7.3 - 1.1 n. a.
Holiday Experiences 252.4 187.2 + 34.8 535.6 293.8 + 82.3
Northern Region 160.3 - 11.4 n. a. 44.3 - 214.8 n. a.
Central Region 32.4 37.8 - 14.4 - 49.1 - 3.8 n. a.
Western Region 32.9 - 34.9 n. a. 2.6 - 54.9 n. a.
Markets & Airlines 225.3 - 8.5 n. a. - 2.1 - 273.5 + 99.2
All other segments - 31.7 - 7.5 - 324.5 - 72.3 - 34.5 - 109.3
TUI Group 446.0 171.2 + 160.4 461.3 - 14.2 n. a.
Employees
30 Jun 2023 30 Jun 2022 Var. %
adjusted
Hotels & Resorts 28,587 27,212 + 5.1
Cruises* 76 64 + 18.8
TUI Musement 10,445 8,420 + 24.0
Holiday Experiences 39,108 35,696 + 9.6
Northern Region 11,002 10,191 + 8.0
Central Region 7,094 7,063 + 0.4
Western Region 5,566 5,110 + 8.9
Markets & Airlines 23,662 22,364 + 5.8
All other segments 2,248 1,998 + 12.5
Total 65,018 60,058 + 8.3
* Excludes TUI Cruises (JV) employees. Cruises employees are primarily hired by
external crew management agencies.
Cautionary statement regarding forward-looking statements
The present Quarterly Statement contains various statements relating to TUI Group’s
and TUI AG’s future development. These statements are based on assumptions and
estimates. Although we are convinced that these forward-looking statements are
realistic, they are not guarantees of future performance since our assumptions
involve risks and uncertainties that could cause actual results to differ
materially from those anticipated. Such factors include market fluctuations, the
development of world market prices for commodities and exchange rates or
fundamental changes in the economic environment. TUI does not intend to and does
not undertake any obligation to update any forward-looking statements in order to
reflect events or developments after the date of this Statement.
Financial calendar
Date
Quarterly Statement Q3 2023 9 August 2023
Trading Update 19 September 2023
Annual Report 2023 6 December 2023
Contacts
Nicola Gehrt
Group Director Investor Relations
Tel: + 49 (0)511 566 1435
Adrian Bell
Senior Manager Investor Relations
Tel: + 49 (0)511 2332
James Trimble
Investor Relations Manager
Tel: +44 (0)1582 315 293
Stefan Keese
Investor Relations Manager
Tel: + 49 (0)511 566 1387
Anika Heske
Junior Investor Relations Manager
Tel: + 49 (0)511 566 1425
TUI AG
Karl-Wiechert-Allee 4
30625 Hannover
Tel: + 49 (0)511 566 00
www.tuigroup.com
This Quarterly Statement, the presentation slides and the video webcast for Q3 2023
(published on 9 August 2023) are available at the following link:
14 www.tuigroup.com/en-en/investors
═══════════════════════════════════════════════════════════════════════════════════
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
═══════════════════════════════════════════════════════════════════════════════════
ISIN: DE000TUAG505
Category Code: QRT
TIDM: TUI
LEI Code: 529900SL2WSPV293B552
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 263250
EQS News ID: 1698881
End of Announcement EQS News Service
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