TUI Group Annual Report: Successful restart in summer and almost complete in the first quarter of winter 2022

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The trend towards higher value-added travel leads to a significant increase in prices and average income / € 1.4 billion in cash flow in the fourth quarter of 2021 – second consecutive positive quarter

  • The unit of the high-income group TUI Hotels & Resorts and the TUI tour operators in the Central (Germany, Austria, Switzerland, Poland) and Western (Belgium, Netherlands, France) regions report positive quarterly results for the first time since the start of the pandemic
  • Underlying Group EBIT close to breakeven in Q4 based on reduced capacity
  • Significantly stronger cash flow: cash flow before financing activities positive for the second consecutive quarter at 1.4 billion euros from July to September
  • Q1 2022 program with 93% almost fully sold – currently 69% of pre-crisis level capacity reached (Q1 2019)
  • Successful transformation: Global Efficiency Agenda takes effect – around 60% of annual cost savings of € 400 million announced from 2023 already achieved in 2021
  • CEO Joussen: “We had a successful summer season after the relaunch. The overall trends are intact. TUI’s operational activity is back and has recovered considerably in the last quarter of 2021. The first quarter of 2022 is already almost fully booked at 93 This means that we are currently at 69% of pre-launch capacity. crisis during the current quarter. We expect summer 2022 and peak travel season to return to similar booking levels to pre-Corona 2019. “

TUI has taken a new step in coming out of the crisis with an almost balanced fourth quarter of 2021. Thanks to the successful upturn in tourism activity, TUI is close to breaking even in terms of underlying EBIT of -97 million euros in Q4 2021 TUI Hotels & Resorts, a large, high-income division for the group, as well as TUI tour operators in the central and western regions, released positive underlying quarterly results for the first time since the start of the pandemic. Cash flow before financing activities was also positive for the second consecutive quarter. Fritz Joussen, CEO of TUI Group: “Operational activity is back. We generate significant cash inflows and again achieve positive results in many markets and with our TUI hotels and hotel brands. The program for the first financial quarter of 2022 is already almost entirely sold. This means that we are currently reaching 69% of the pre-crisis level. We expect summer 2022 to reach a largely normalized booking level. Structurally, we also did our homework. The transformation of the Group and the overall efficiency program are In 2021, we have already achieved approximately 60% of the annual cost savings of 400 million euros announced for 2023. In addition, we have reduced our debt thanks to measures of successful refinancing, strengthened balance sheet and have very strong liquidity. I would like to thank our guests for their trust, all colleagues for their commitment and our partners in markets and destinations for their dedicated support with the successful revival of tourism in 2021. ”

Q4 2021: Underlying EBIT close to breakeven – The high-yield TUI Hotels & Resorts division and tour operators in the Center and West regions post positive profits – € 1.4 billion in positive cash flow
In the fourth quarter of fiscal 2021, TUI generated clearly positive cash inflows and nearly tripled year-on-year revenue to € 3.5 billion (Q4 2020: € 1.2 billion) . Nearly break-even result: Underlying EBIT improved by 570 million euros to -97 million euros compared to the previous quarter on the basis of reduced capacity – including one-off effects of -60 million euros (Q4 2020: -1.03 billion euros). A positive underlying EBIT was achieved for the first time since the start of the pandemic by TUI Hotels & Resorts (116 million euros), traditionally an important segment for the Group’s results, and by the central region with the markets German, Austrian, Swiss and Polish (49 million euros) and the Western Region with the Dutch, Belgian and French markets (71 million euros). Thanks to the successful resumption of operational activity in the fourth financial quarter, TUI recorded significant cash inflows so that cash flow before financing activities was positive for the second consecutive quarter at 1.4 billion euros. As of December 6, TUI had 3.5 billion euros in financial resources.

Reservations for 2022 at a high level – average prices + 15% (winter) and + 23% (summer)
Over 1.4 million additional bookings have been made since the last booking update in early October 2021. TUI currently has 4.1 million bookings for winter 2021/22 and summer 2022. The Group is currently planning capacities in winter 2021/22 with a corridor of 60 to 80% of the pre-Corona 2019 year. 69% have already been achieved in the first financial quarter of 2022, with 93% of the program for the first quarter of 2022 already sold. There will be flexibility in deciding whether or not to offer winter program capability at the lower end of the range depending on the Fourth Corona Wave and possible policy decisions regarding the Omicron variant. The capacity plans are regularly reviewed and adjusted. For the winter and the year to come, it is clear that vacationers are choosing more advantageous offers, more package tours and are also ready to budget more for their vacations. Average prices are around 15% higher than the year before the crisis. For the relatively well booked summer of 2022, average prices are even 23% higher.

The long-term trend is intact: people want to travel
In the full year 2021, 5.4 million customers traveled with TUI. The level of reservations for fiscal year 2022 is already encouraging with 4.1 million reservations. Tourism remains a strong growth market in the long term. It benefits from global social trends that will continue to intensify in the years to come: people are living longer, they are healthier and more aware. Many have the financial means to make a conscious decision to travel. Experiences and encounters become more important to many people than possessions and possessions. Whenever the restrictions are lifted, demand resumes immediately. Currently, however, customers are booking later and on a short-term basis. Joussen: “The benefits of our integrated and diverse business model are particularly evident now that we can react quickly to changing market conditions. Great flexibility was required when we restarted. TUI can do it like no one else in our industry, as we have all stages of a tour operator’s value chain in-house, allowing us to make quick and coordinated decisions: when reopening our hotels in a region, we schedule the flights, have the plane to get to our destination and the teams on the ground to take care of our customers. Everything takes place at TUI. This is important for our customers’ vacation experience – and economically efficient for the Group. ”

About the TUI group

TUI Group is a leading global tourism group and operates worldwide. The Group is headquartered in Germany. TUI shares are listed on the FTSE 250, an index of the London Stock Exchange, on the regulated market of the Hanover Stock Exchange and on the Open Market segment of the Frankfurt Stock Exchange. The TUI Group offers integrated services from a single source to its 28 million customers, including 21 million in European national companies.

The entire tourism value chain is covered under one roof. This includes over 400 hotels and resorts with premium brands such as RIU, TUI Blue and Robinson and 16 cruise ships, MS Europa and MS Europa 2 in the luxury class and expedition ships in the fleet. Mein Schiff of TUI Cruises and Cruise Ships. at Marella Cruises in Great Britain. The Group also includes leading tour operator brands and online marketing platforms across Europe, five airlines with more than 100 modern medium and long-haul aircraft and more than 1,000 travel agencies. In addition to expanding its core business with hotels, cruises through successful joint ventures and activities in vacation destinations, TUI is increasingly focusing on expanding digital platforms. The Group is transforming into a digital company.

Global responsibility for sustainable economic, ecological and social action is at the heart of our corporate culture. The TUI Care Foundation, initiated by TUI, focuses on the positive effects of tourism, on education and training and on strengthening environmental and social standards with projects in 25 countries. It thus supports holiday destinations in their development.

Kuzey Esener

Head of Media Relations
Business

Contact details

+49 (0) 511 566 6024

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TUI SA published this content on 08 December 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 08 December 2021 07:11:07 UTC.

Public now 2021

Analyst Recommendations on TUI AG
Sales 2021 5,501 million
6 234 million
6 234 million
Net income 2021 -2 226 million
-2,523 million
-2,523 million
Net debt 2021 6 316 million
7,158 million
7,158 million
PER 2021 ratio -1.44x
Yield 2021
Capitalization 2,857 million
3,238 million
3,238 million
VE / Sales 2021 1.67x
VE / Sales 2022 0.49x
Number of employees 46,518
Free float 62.2%

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