In This Article:
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Revenue: EUR23 billion.
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EBIT: EUR1.3 billion, up 33%.
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Net Debt Improvement: Leverage improved from 1.2 to 0.8.
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Bookings: Winter bookings up 4%, ASP up 5%; Summer bookings up 7%, ASP up 3%.
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Occupancy: Cruise occupancy increased by 5%.
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Market & Airline Performance: Improvement from EUR240 million to EUR305 million, with a 7% increase in departed pax.
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Hotel Portfolio: Close to 450 hotels, aiming for 500-600.
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App Sales Growth: 40% increase in app sales share.
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Dividend Stream: EUR50 million from joint ventures, EUR20 million from TUI Cruises.
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EPS: EUR1, compared to EUR0.60 in the previous year.
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Guidance: Revenue expected to grow 5% to 10%, EBIT to grow 7% to 10%.
Release Date: December 11, 2024
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 a significant increase in EBIT, up 33% year-over-year, driven by robust customer demand.
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The company achieved strong revenue growth, reaching EUR23 billion, in line with their guidance.
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TUI AG (TUIFF) successfully reduced its net debt, improving its financial profile and leverage ratio from 1.2 to 0.8.
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The company reported outstanding Net Promoter Scores (NPS) and customer satisfaction, indicating high customer loyalty and satisfaction.
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TUI AG (TUIFF) achieved its ESG milestones, including CO2 emission targets and social goals, demonstrating a commitment to sustainability.
Negative Points
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The Western region's performance was unsatisfactory, primarily due to one-time effects such as the valuation of maintenance reserves.
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The company faces headwinds from increased costs related to Sustainable Aviation Fuel (SAF) and Emissions Trading System (ETS) in the Markets & Airline segment.
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The delivery schedule for Boeing aircraft has been delayed, impacting capital expenditure and cash flow.
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Interest costs remain high, with a forecast of around EUR400 million, limiting potential savings despite a favorable interest rate environment.
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The UK market showed weaker summer bookings, down 3%, raising concerns about market share and competitive positioning.
Q & A Highlights
Q: Can you provide details on the impact of the Easter shift and maintenance reserves on the quarterly profit cadence? A: The Easter shift is expected to impact profits by approximately EUR30 million to EUR40 million, as seen in past years. Most of the 7% to 10% EBIT growth will be realized in the second half of the fiscal year. The maintenance reserve impact in Q4 was significant but is difficult to predict for the future, depending on interest and dollar developments.