In This Article:
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Revenue: Up 13% driven by holiday experiences, market, and airlines.
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Underlying EBIT: Increased by 51%, marking the 10th consecutive quarter of growth.
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Hotel and Resorts Performance: Up EUR60 million; Bed Nights up 3%, Occupancy up 2%, Daily Rate up 5%.
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Cruise Segment: Up EUR14 million; Capacity up 10%, Rates up 4%.
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TUI Musement: Increased by EUR9 million with experiences growth of 12%.
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Market and Airlines: Down by EUR30 million, primarily due to investments in the Nordic market.
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Net Debt: Remained flat compared to last year.
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Interest Expense: Improved versus prior year, with a focus on refinancing.
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Booking Trends: Winter bookings up 2%, Summer ASP up 4%.
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Guidance: Reaffirmed full-year underlying EBIT increase of 7% to 10%.
Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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TUI AG (TUIFF) reported its 10th consecutive quarter of underlying EBIT growth, supported by strong performance in hotel, cruise, and TUI Musement segments.
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Revenues increased by 13%, driven by holiday experiences and market and airlines, with a positive outlook for the upcoming summer season.
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The company achieved a BB rating from Fitch, reflecting improved financial discipline and structure, returning to pre-pandemic levels.
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TUI AG (TUIFF) is benefiting from a global customer base, with increased demand from regions such as the Caribbean and Spain, contributing to higher occupancy and rates.
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The company is making significant strides in sustainability, with new ships ready for green methanol and LNG, aligning with its long-term sustainability goals.
Negative Points
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Market and airlines segment reported a decline of EUR30 million, primarily due to investments in the Nordic and Northern European markets.
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There is a concern about volume slowdown in Germany and negative bookings in the UK, which could impact future growth.
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Despite a strong start, the company faces challenges in maintaining cruise occupancy rates, which are down compared to pre-pandemic levels.
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The company is cautious about adding fixed capacity, relying on dynamic packaging for growth, which may not yield immediate profitability.
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TUI AG (TUIFF) faces competitive pressure in the UK market, with competitors increasing their capacity significantly, which could affect market share.
Q & A Highlights
Q: Are you concerned about the volume slowdown in Germany compared to the figures you gave in December? And why are the hotel ADR figures accelerating in Q2 and the second half of the year compared to Q1? A: We are benefiting from our global portfolio and increased global travel, especially in regions like the Caribbean and Spain, where demand is strong from outside Europe. Regarding Germany, we are focusing on margin protection and managing volume strategically. We do not expect the market to weaken significantly.