EQS-News: TUI Group: Full-year results to 30 September 2024
EQS-News: TUI AG
/ Key word(s): Annual Results
11 December 2024 TUI GROUP
Full-year results to 30 September 2024
FY24 FINANCIAL HIGHLIGHTS & TRADING UPDATE
FY25 Guidance4
Mid-Term Ambitions
FY24 KEY FINANCIALS
FY24 FULL YEAR RESULTS
NET DEBT & CAPITAL ALLOCATION During the year we achieved a further strong improvement in our net debt position by €0.5bn to €1.6bn. The improvement was driven in particular by a higher operating cash flow as well as slightly lower liabilities for aircraft leases and asset financing. Based on an improvement in net debt and the increase in underlying EBITDA, our net leverage ratio5 improved to 0.8x in FY24 against 1.2x in the previous year and 1.6x in FY19. This improvement reflects both the significant progress we have made operationally, as well as the measures we have taken to strengthen our balance sheet. We remain on track to achieve our mid-term target for a net leverage ratio of well below 1.0x. The operational and financial progress made by the business was also reflected in a further improvement in our credit rating during the year. S&P upgraded to B+ and Moody’s to B1 with both noting a positive outlook.
FUEL/FOREIGN EXCHANGE Our strategy of hedging the majority of our jet fuel and currency requirements for future seasons gives us increased certainty of costs when planning capacity and pricing. Our current hedged positions for the coming winter and summer seasons are in line with our expectations. The table below highlights the percentage of our forecast requirement that is currently hedged for Euros, US Dollars, and Jet Fuel for our Markets + Airline, which account for over 90% of our Group currency and fuel exposure.
*Position at 8 December, 2024
CURRENT TRADING (an overview table is provided in the appendix) Markets + Airline2 – Trading momentum for Winter 2024/25 has continued to be promising since our Pre-Close Trading Update on 24 September, with 1.5m bookings added in the interim to now total 3.3m for the season. Bookings continue to be strong at +4% against Winter 2023/24, supported by continued stronger demand in particular for our dynamic product offering. Notably, ASP has remained at +5% over the same timeframe, supported by the increased sales mix of wholesale and dynamic packages. This is against the background of a higher inflationary environment and our expectation that the first half of the year will be impacted by a higher seasonality for investment ahead of the summer and the shift of Easter holidays into Q3. To date 62% of the programme has been sold, which is in line with the prior winter season. Demand for short- and medium haul destinations continues to drive bookings, with popular destinations proving to be the Canaries, Egypt, and Cape Verde. Key long-haul destinations for the Winter are expected to be Thailand, Mexico, and the Dominican Republic. In the UK, we have sold 62% of the season. Here, bookings are in line with the high levels of Winter 2023/24. In Germany, our other major market, bookings remain well ahead at +9% with 60% of the season sold. Initial figures for Summer 2025 are promising in a higher cost environment, with bookings ahead at +7% and ASP up +3% at this very early stage, following the sale of 17% of the season. Demand for short- and medium haul destinations continues to drive bookings, with Greece, Türkiye, and the Balearics proving once again to be most popular. The UK is 27% sold with bookings at -3% with strong momentum in the last four weeks. In Germany, 13% of the season has been sold. Here the season has started strongly, with volumes up +19%. Hotels & Resorts3 – Demand for our well-diversified portfolio of brands and destinations remains high, with the key trading KPIs maintaining the levels we published in our Pre-Close Trading Update on 24 September. An increased number of hotels closed for regular renovation, means the number of available bed nights10 for H1 FY25 is -2% lower than in H1 FY24. Booked occupancy11 is currently up +7%pts for the same period. Average daily rates12 are +6% ahead across our key hotel brands. We expect the Canaries, Egypt, and Cape Verde to be the most popular destinations during the period. Cruises3 – In line with the strong trading environment and market growth projections, we aim to grow the segment by investment into new-build ships by our TUI Cruises JV. Following the successful launch of Mein Schiff 7 in June 2024, the Mein Schiff Relax will complement the fleet towards the end of H1 FY25. Here the start of bookings has been very positive, with the christening voyage sold out within a few hours. Following the addition of the new ship, the total fleet size will be 18 vessels. As a result, available passenger cruise days13 in H1 FY25 is significantly higher at +14%. Booked occupancy14 is at -5%pts due to late changes to itineraries as a consequence of the political tensions around the Suez Canal. If this effect is excluded, booked occupancy is broadly in line with the previous year. Average daily rates15 are at +1% due to a change in the brand and itinerary mix. Based on a fleet of initially seven ships, Mein Schiff will offer itineraries to the Canaries, the Orient, the Caribbean, Central America, Asia South Africa, and Northern Europe. Hapag-Lloyd’s fleet of five ships will sail to the Americas, Asia, Africa, the South Pacific and Europe, with the semi-circumnavigation of Antarctica being a particular highlight in the programme. The winter schedule for Marella Cruises, covers itineraries to the Canaries and Caribbean based on a fleet of five ships. TUI Musement3 – In TUI Musement, we are progressing the platforming and commercialization of Experiences, Tours, and Transfers. As a result, we continue to increase our range of B2C experiences, grow our B2B business with partners as well as increase the volume of transfers and experiences sales supported by our Markets + Airline business. The winter period has started positively, with sales to date for our experiences business which includes excursions, activities, and tickets growing by a high single-digit percentage for H1 FY25. Our transfer business providing support and services to our guests in destination, is expected to develop in line with our Markets + Airline capacity assumptions.
SUSTAINABLITY (ESG) As an industry leading Group, we want to set the standard for sustainability in the market. We believe that sustainable transformation should not be viewed solely as a cost factor, but that sustainability pays off – for society, for the environment, and for economic development. Our strategy is therefore underpinned by clear science-based goals and targets on sustainability. TUI’s Sustainability Agenda consists of three building blocks ‒ People, Planet and Progress. We have near-term targets set for airline, cruises, and hotels that are in line with the Paris Agreement goals. By 2030, we aim to reduce CO2 emissions per air passenger by nearly a quarter. In the Cruises segment we aim to cut absolute emissions by almost 28%, in our hotels by at least 46% all compared to 2019 levels. These targets were recognised by and developed together with the Science Based Targets initiative (SBTi) and we are committed to implementing these in line with the latest climate science findings. Our ambition is to achieve net-zero emissions across our operations and supply chain by 2050 at the latest and thereby change the way we use natural resources becoming a circular business. We continue to make significant progress to reduce relative emissions across our business to achieve our sustainability agenda. Most recent achievements include:
STRATEGIC PRIORITIES Our business model is focused on integration and differentiation, and we are committed to delivering profitable growth. Our strategy is defined across both our Holiday Experiences and Markets + Airline business divisions. It is embedded onto one central customer ecosystem, underpinned by our Sustainability Agenda and by our people. As well as growing customer volumes, our marketing and distribution strategy focuses on maximising customer life-time value, leveraging the synergies between both of our business divisions, and lowering our cost of distribution. As the basis for this, we will continue to strengthen and leverage the TUI brand in existing and untapped customer segments and broaden our brand image for our growth products (such as cities, tours, accommodation only and experiences). We continue to enhance our app with a focus on native bookflows, targeting further growth in the proportion of digital sales made in-app. Our Holiday Experiences (Hotels & Resorts, Cruises, TUI Musement) strategy focusses on asset-right, profitable growth in differentiated content, serving global demand. In Hotels & Resorts, product growth is delivered by expanding our portfolio in new and existing destinations. Product growth in Cruises is driven by investment into new-build ships by our TUI Cruises JV, with the launch of Mein Schiff 7 in 2024 and two further launches over the next two years. Further product features have also been added to our Marella Cruises fleet, including new restaurant concepts and cabin refurbishments, and we continue to invest in and execute ESG initiatives in all three fleets in order to deliver our sustainability goals. We believe our differentiation in Cruises is a strong driver of our high rates of customer satisfaction and NPS. We are also continuing to enhance our distribution platform for both TUI Cruises and Marella Cruises. In TUI Musement, we are progressing the platforming and commercialisation of Experiences, Tours, and Transfers. We have a common platform strategy for all three businesses, focused on scalability, digitalisation and dynamic production, enabling profitable growth and global expansion. Own products are a key differentiator and driver of profitable growth. Our Markets + Airline transformation strategy is focused on strengthening and leveraging our capabilities (including brand and distribution, differentiated and exclusive product, quality, and service) and market positions, with growth delivered from new products and new customers, based on scaleable common platforms. Product growth is based on an expanded offer of accommodation only, flight only and ancillaries, as well as increasing the volume and proportion of dynamic packaging and supply, to deliver choice, flexibility and hence growth, without increasing risk capacity. Customer growth is driven by the increase in choice and flexibility, as we enlarge our appeal across more customer segments, supported by our brand and marketing strategy. In September 2024 we announced the acceleration of our Markets + Airline transformation, to ensure that we deliver our growth targets, through the implementation of a new set-up. This consists of three main focus areas made up of a new operating model for the tour operator, a separate unit for Expansion Businesses and an enlarged commercial function for TUI Airline. Our employees make a key contribution to TUI’s success. The vision outlined in our People Strategy is to be Digital, Engaging, and Inclusive, creating a framework that enables our employees to deliver their best performance and work together successfully as a team. Our TUI Spirit is driving engagement. This was reflected in our annual global employee engagement survey TUIgether+18 this year, which significantly increased by +8 points to a score of 80 out of 100, 6 points higher than the global Glint benchmark. Our commitment to innovation remains strong. We have embraced the use of Artificial Intelligence (AI) within TUI, to foster a culture of growth and development. In FY24 around 30,000 of our employees received Generative AI training empowering them with future-ready skills. We continue to enhance our employer branding initiatives. Our efforts in this field have been recognised through awards in various countries, including the European Excellence Award 2023 in the Employer Branding and Recruiting category. In total, these achievements demonstrate our commitment to ensuring TUI remains an employer of choice and continues to drive innovation. ANNUAL REPORT AND FY24 RESULTS INVESTOR & ANALYST VIDEO WEBCAST Our Annual Report for the financial year 2024 and the accompanying results presentation can be found on our corporate website: https://www.tuigroup.com/en-en/investors/reports-and-presentations. A conference call and video webcast will take place today at 09:30 GMT / 10.30 CET. Further details are provided on our website.
UPCOMING FINANCIAL CALENDAR FY25 TUI Group will hold its Annual General Meeting and publish its Q1 FY25 Report on 11 February 2025. We are also pleased to announce, that we will hold a Capital Markets Day on 24/25 March 2025.
__________________________________________________________________________________________ 1 Since the merger of TUI AG and TUI Travel PLC in 2014 2 Bookings as of 8 December 2024 relate to all customers whether risk or non-risk 3 H1 FY25 trading data (excluding Blue Diamond in Hotels & Resorts) as of 8 December 2024 compared to H1 FY24 trading data 4 Based on constant currency and within the framework of the macroeconomic and geopolitical uncertainties currently known 5 Net Leverage ratio defined as net debt (financial liabilities plus lease liabilities less cash & cash equivalents less other current financial assets) divided by Underlying 6 Underlying EBIT has been adjusted for gains on disposal of investments, major gains and losses from the disposal of assets, major restructuring and integration expenses. The indicator is also adjusted for all effects from purchase price allocations, ancillary acquisition costs and conditional purchase price payment as well as for goodwill impairments 7 Reported EBIT comprises earnings before net interest result, income tax and results from the measurement of interest hedges 8 The reconciliation of loss/earnings before tax to underlying EBIT, is provided on page 60 of the Annual Report 2024 9 The calculation of underlying earnings per share, is provided on page 33 of the Annual Report 2024 10 Number of hotel days open multiplied by beds available (Group owned and leased hotels) 11 Occupied beds divided by available beds (Group owned and leased hotels) 12 Board and lodging revenue divided by occupied bed nights (Group owned and leased hotels) 13 Number of operating days multiplied per berths available on the operated ships 14 Achieved passenger cruise days divided by available passenger cruise days 15 TUI Cruises: Ticket revenue divided by achieved passenger cruise days. Marella Cruises: Revenue (stay on ship inclusive of transfers, flights and hotels due to the integrated nature of Marella Cruises) divided by achieved passenger cruise days 16 Share of online sales 17 Share of sales via own channels (retail and online) 18 The TUIgether+ engagement index is based on two questions: whether employees would recommend TUI as an employer (“Recommend”) and their satisfaction with working at TUI (“eSat”). Scores from a 5-point scale are converted to a 100-point index and averaged
This announcement 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 or political 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 announcement.
11.12.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
Language: | English |
Company: | TUI AG |
Karl-Wiechert-Allee 23 | |
30625 Hannover | |
Germany | |
Phone: | +49 (0)511 566-1425 |
Fax: | +49 (0)511 566-1096 |
E-mail: | Investor.Relations@tui.com |
Internet: | www.tuigroup.com |
ISIN: | DE000TUAG505 |
WKN: | TUAG50 |
Indices: | MDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard), Hanover; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange; London |
EQS News ID: | 2048315 |
End of News | EQS News Service |
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2048315 11.12.2024 CET/CEST
Boersengefluester.de (BGFL) provides an overview of the key figures on sales, earnings, cash flow and dividends to help you better assess the fundamental development of the respective companies. All information is entered manually in our database - the source is the respective annual reports. All estimates for future figures are provided by BGFL.
The most important financial data at a glance | ||||||||
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024e | ||
Sales1 | 18.468,70 | 18.928,10 | 7.943,70 | 4.731,60 | 16.544,90 | 20.665,90 | 23.167,30 | |
EBITDA1,2 | 1.494,30 | 1.277,50 | -1.355,00 | -1.000,40 | 1.203,30 | 1.858,50 | 2.121,90 | |
EBITDA-Margin3 | 8,09 | 6,75 | -17,06 | -21,14 | 7,27 | 8,99 | 9,16 | |
EBIT1,4 | 1.053,90 | 767,70 | -2.927,40 | -2.012,80 | 320,00 | 999,30 | 1.275,30 | |
EBIT-Margin5 | 5,71 | 4,06 | -36,85 | -42,54 | 1,93 | 4,84 | 5,51 | |
Net Profit (Loss)1 | 813,60 | 532,10 | -3.139,10 | -2.480,90 | -212,60 | 455,70 | 707,40 | |
Net-Margin6 | 4,41 | 2,81 | -39,52 | -52,43 | -1,29 | 2,21 | 3,05 | |
Cashflow1,7 | 1.150,90 | 1.114,90 | -2.771,90 | -151,30 | 2.077,80 | 1.637,30 | 1.910,80 | |
Earnings per share8 | 12,50 | 7,10 | -53,40 | -25,80 | -1,02 | 0,80 | 0,99 | |
Dividend per share8 | 7,20 | 5,40 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 |
1 in Mio. Euro; 2 EBITDA = Earnings before interest, taxes, depreciation and amortisation; 3 EBITDA in relation to sales; 4 EBIT = Earnings before interest and taxes; 5 EBIT in relation to sales; 6 Net profit (-loss) in relation to sales; 7 Cashflow from operations; 8 in Euro; Source: boersengefluester.de
Auditor: Deloitte
All relevant valuation ratios, dates and other investor information on your share at a glance. Good to know: All data comes from boersengefluester.de and is updated daily. This means you are always up to date. You can get brief explanations of the key figures by moving the cursor or mouse over the relevant field.
INVESTOR-INFORMATION | ||||||
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TUI | ||||||
WKN | ISIN | Legal Type | Marketcap | IPO | Recommendation | Plus Code |
TUAG50 | DE000TUAG505 | AG | 4.309,10 Mio € | 09.10.1959 | Halten | 9F4F9RM6+GC |
PE 2025e | PE 10Y-Ø | BGFL-Ratio | Shiller-PE | PB | PCF | KUV |
7,94 | 13,23 | 0,60 | -2,93 | 4,51 | 2,26 | 0,19 |
Dividend '2022 in € |
Dividend '2023 in € |
Dividend '2024e in € |
Div.-Yield '2024e in % |
0,00 | 0,00 | 0,00 | 0,00% |
Annual General Meeting | Q1-figures | Q2-figures | Q3-figures | Annual press conference |
11.02.2025 | 11.02.2025 | 14.05.2025 | 13.08.2025 | 11.12.2024 |
Distance 60-days-line | Distance 200-days-line | Performance YtD | Performance 52 weeks | IPO |
+11,59% | +23,83% | +20,22% | +19,54% | +0,00% |
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