TIDMTUI
RNS Number : 6066T
TUI AG
31 March 2016
31 March 2016
TUI GROUP
Pre-Close Trading Update
Prior to entering its close period ahead of reporting its
Interim results for the six months ending 31 March 2016 on 11 May
2016, TUI Group announces the following update on current
trading.
Chief Executive of TUI Group, Friedrich Joussen, commented:
"Winter 2015/16 is closing out as expected, with 95% of our
Source Market programme sold and increased revenue in all our major
Source Markets. We remain pleased with our Summer 2016 trading
performance, with both revenue and bookings ahead of last year. The
UK continues to demonstrate a strong bookings performance, up 9% on
prior year. Hotels & Resorts are performing well overall,
benefitting from increased demand in Spain, the Canaries, and
long-haul. Cruise is delivering continued growth, driven by strong
demand for Mein Schiff 5 which is due to be launched this July.
Hotelbeds Group continues to deliver TTV growth and the disposal
process remains on track.
The Group has again demonstrated the flexibility of its business
model and the ability to remix destination capacities to match
demand and as a result demand and pricing has remained resilient
overall despite the impact of geopolitical events. Our integrated
model with our differentiated range of own accommodation content,
combined with strong supplier relationships continue to give us a
strong competitive position and sustainable earnings growth. We
therefore remain well positioned to deliver underlying EBITA growth
of at least 10% in financial year 2015/16 (1) ."
Highlights
Remain pleased with Source Market trading
-- Winter 2015/16 is closing out as expected, with our Source
Market programme almost fully sold. Revenue is up 3% driven by
higher average selling prices across most Source Markets with a
particularly good performance in the Canaries, Spain and long-haul
destinations.
-- Remain pleased with Summer 2016 performance, with 47% of the
programme sold, broadly in line with last year. Revenue is up 3%,
driven by 2% growth in bookings and 1% higher average selling
prices, highlighting the continuing strength of demand for package
holidays.
o Strong UK performance, with revenue up 8% and bookings up
9%.
o As expected, demand for Turkish destinations remains subdued;
excluding Turkey, Source Market bookings are up 8%.
o Remix of capacity to alternative popular destinations has
driven growth in Spanish bookings with medium-haul and long-haul
destinations also seeing good demand.
o Bookings online continue to grow; now accounting for 38% of
bookings, up three percentage points on the prior year.
Hotels & Resorts are performing well
-- Improved occupancy and performance outside Turkey and North
Africa driven by the popularity of alternative destinations and new
hotel openings.
Continued growth in Cruise bookings driven by introduction of
Mein Schiff 5 this summer
-- Strong Cruise bookings performance for Summer 2016 driven by
demand for Mein Schiff 5 which is due to be launched this July.
Post carve-out, Hotelbeds Group continues to see growth
momentum
-- The bedbank business continues to see double-digit growth,
with TTV up 17% and room nights up 11% for Winter 2015/16.
Outlook
-- Based on current trading and the resilience of our integrated
business model, we remain well positioned to deliver full year
underlying EBITA growth of at least 10%(1) .
(1) Assuming constant foreign exchange rates are applied to the
result in the current and prior year and based on current Group
structure
CURRENT TRADING
Winter 2015/16
The Winter 2015/16 season is closing out as expected. 95% of our
Source Market programme has been sold, in line with last year, with
revenue up 3% driven by higher average selling prices up 3%.
Bookings overall are flat on last year with the UK continuing to
perform well, up 2%.
Travel restrictions remain in place for flights to and from
Sharm El Sheikh and our ability to rapidly remix our capacity to
alternative popular and profitable destinations such as the
Canaries and other medium-haul, and expansion of capacity to
long-haul destinations has successfully offset the impact of the
restrictions. The online channel continues to drive growth in
sales, accounting for 44% of total bookings, up two percentage
points on the prior year.
Trading by Hotels & Resorts largely mirrors Source Market
customer numbers, as a high proportion of Group-owned hotel beds
are taken up by the Source Markets. In Cruises, the positive
bookings performance continues to be driven by the expansion of the
TUI Cruises fleet, following the launch of Mein Schiff 4 last
Summer and improved fleet performance by Hapag-Lloyd Cruises.
Current Trading(1) Winter 2015/16
YoY variation% Total Total Total Programme sold (%)
Revenue(2) Customers(2) ASP(2)
Northern Region +4 +1 +3 95
UK +3 +2 +1 93
Nordics +7 Flat +6 100
Central Region +2 -3 +6 97
Germany +2 -3 +5 97
Western Region +1 +2 -2 92
Benelux +3 +4 -1 92
Total Source Markets +3 Flat +3 95
Hotelbeds Group - Bedbank(3) +17 +11 +5 n/a
(1) These statistics are up to 20 March 2016 and are shown on a
constant currency basis
(2) These statistics relate to all customers whether risk or
non-risk
(3) Sales refer to total transaction value (TTV) and customers
refers to roomnights
In the UK, bookings are up 2% and average selling prices are up
1%. To date, 93% of the Winter programme has been sold, 1% point
ahead of prior year. The growth in bookings has been driven by
expansion in long-haul with bookings up 12% and strong demand in
particular for Mexico, Dominican Republic and Jamaica. Short and
medium-haul bookings are up 1% on last year with the Canaries,
Spanish Mainland and Cape Verde performing well.
In the Nordics, revenue is up 7% and average selling prices up
6%. Bookings are flat, continuing the same trend of performance
since our Q1 update. To date, 100% of the Winter programme has been
sold. The roll-out of our Riu hotels to the Nordics source markets
continues to prove successful with increased bookings to the
Caribbean.
In Germany, revenue is up 2% and average selling prices up 5%
which reflects the higher proportion of long-haul bookings with
growth in particular to Thailand and Asia. To date, 97% of the
Winter programme has been sold, broadly in line with prior year.
Consumer sentiment continues to be adversely impacted by
geopolitical events in Egypt and Turkey and performance has been
negatively impacted by the increase of third party flight capacity
to sun and beach destinations.
In Benelux, revenue is up 3% and bookings are up 4% with average
selling prices marginally weaker. Bookings in the Netherlands are
up 7%, as a result of the increased marketing activity following
the TUI rebrand and increase in capacity. Bookings in Belgium have
improved since our last update and are currently up 2%.
The Hotelbeds Group bedbank is continuing to deliver a
significant increase in both TTV and roomnights for Winter, up 17%
and 11% respectively. The disposal process for this business remain
on track.
Summer 2016
We remain pleased with trading to date for Summer 2016. Within
the Source Markets, we have sold approximately 47% of the
programme, broadly in line with prior year. Revenue is up 3%,
driven by customer bookings up 2% and higher average selling prices
up 1%. The UK is delivering a strong performance, with revenue up
8% and bookings up 9%. As expected, demand for Turkish destinations
remains subdued. Capacity has been remixed away to profitable
alternative destinations, with Mainland Spain, the Balearics and
the Canaries seeing the most significant growth, where we are well
placed to benefit through our own hotel content. We continue to
grow our long-haul programme, with Mexico, Dominican Republic and
Jamaica remaining our most popular destinations and Costa Rica
being added to the summer programme this year. Bookings through our
controlled channels account for 70% of Summer 2016 bookings, up two
percentage points, with the online channel accounting for 38% of
bookings, up three percentage points.
As for Winter, trading by Hotels & Resorts largely mirrors
customer numbers in our Source Markets, with higher demand and
occupancy rates outside Turkey and North Africa mitigating the
impact of lower demand in those destinations. We plan on opening
two new Riu hotels in Sri Lanka and Dominican Republic this Summer
and there will be further openings in our other hotel brands. In
Cruises, the growth in bookings is driven by the launch of Mein
Schiff 5 by TUI Cruises this July and improved fleet performance by
Hapag-Lloyd Cruises.
FUEL/FOREIGN EXCHANGE
(MORE TO FOLLOW) Dow Jones Newswires
March 31, 2016 02:00 ET (06:00 GMT)
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 former TUI Travel businesses, which
account for over 90% of our Group currency and fuel exposure.
Travel Winter 2015/16 Summer 2016 Winter 2016/17
Euro 97% 86% 55%
US Dollars 96% 88% 62%
Jet Fuel 98% 92% 80%
As at 24 March 2016
--------------------- --------------- ------------ ---------------
OUTLOOK
We remain pleased with the development of Summer 2016 trading
since our last update with Source Markets revenues currently up 3%.
Our customers are continuing to make plans to travel particularly
to traditional destinations such as Spain and the Canaries, and
increasingly to long-haul locations, benefitting our strong Hotels
& Resorts brands in those parts of the world. This demonstrates
once again the resilience of our business and our strong
competitive position. Cruise continues to grow, with the launch of
Mein Schiff 5 in July and a good performance by Hapag-Lloyd
Cruises. Hotelbeds is delivering further TTV growth and the
disposal process remains on track. Based on current trading and the
resilience of our integrated business model we remain confident of
delivering underlying EBITA growth of at least 10% in financial
year 2015/16(1) .
HALF-YEAR FINANCIAL REPORT 2015/16
TUI Group will issue its H1 interim results on Wednesday 11 May
2016 and hold a presentation for investors and analysts on the same
day. Further details will follow.
ANALYST & INVESTOR ENQUIRIES
Andy Long, Director of Investor Relations Tel: +44 (0)1293 645 831
Contacts for Analysts and Investors in UK, Ireland and Americas
Sarah Coomes, Head of Investor Relations Tel: +44 (0)1293 645 827
Hazel Newell, Investor Relations Manager Tel: +44 (0)1293 645 823
Jacqui Smith, PA to Andy Long Tel: +44 (0)1293 645 831
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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March 31, 2016 02:00 ET (06:00 GMT)
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