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  7. First Quarter Results

First Quarter Results

06 Feb 2014

Download full statement here.

First Quarter Results ended 31 December 2013 and Interim Management Statement

  • Q1 underlying operating loss reduced by £8m to £108m1
  • Robust current trading with a strong performance in the key January booking period
  • Demand for our unique holidays continues to grow
  • Strong growth in online bookings
  • Confident of delivering full year underlying operating profit growth of between 7% to 10%2

Peter Long, Chief Executive of TUI Travel PLC, commented:

“We are very pleased with our current position having reduced the operating loss in the first quarter against a strong prior year performance. We have delivered further efficiency savings in France and an improved result in Specialist & Activity. Our digital transformation continues to gather pace, with a very successful online performance across Mainstream throughout the key January booking period. We also continue to see strong growth in our Accommodation Wholesaler business. Our strategy is delivering sustainable growth, with a robust business model focused on growing unique holidays and online distribution. Overall, trading remains in line with our expectations and we are confident of delivering 7% to 10% growth in underlying operating profit during the year.2

Highlights

  • Q1 Results
    • Underlying operating loss reduced by £8m to £108m (Q1 2013: loss of £116m) against a strong prior year performance.
    • France restructuring and capacity management helping to drive a reduction in operating loss.
    • Strong trading in Accommodation Wholesaler continues, while Specialist & Activity has delivered an improved performance.
       
  • Robust current trading - strong performance in key January booking period
    • Winter 2013/14 is closing out in line with our expectations – 85% of the programme sold, with higher average selling prices in most source markets.
    • Pleased with Summer 2014 trading, in particular our performance in the key January booking period, with higher average selling prices and Mainstream volumes up by 1% against tough comparatives.
    • Excellent online performance with Mainstream Summer 2014 online bookings up by 8%.
    • Continued growth in sales of unique holidays which account for 74% of Mainstream Summer 2014 bookings, up two percentage points on prior year.
  • Accommodation Wholesaler growth
    • Continues to build on its global leadership position.
    • TTV up by 45% in early Summer 2014 trading.
  • Growth roadmap
    • In the second year of our five-year growth roadmap our strategy continues to deliver and we remain confident of achieving our growth targets.

1 Underlying operating loss excludes separately disclosed items, acquisition related expenses, impairment of goodwill and interest and taxation of results of the Group’s joint ventures and associates

2 Constant currency basis assumes that constant foreign exchange translation rates are applied to the underlying operating result in the current and prior year

 

Full announcement attached.

 

Investor and Analyst Conference Call

A conference call for investors and analysts will take place today at 8.15am (GMT). The dial-in arrangements for the call are as follows:

Telephone: +44 (0)1452 555 566
Participant Code: 32894378

A presentation to accompany the conference call is available here

A recording of the conference call will be available for 30 days on:

Telephone: +44 (0)1452 550 000
Participant Code: 32894378

 

Pre-close Trading Update

TUI Travel will issue a pre-close trading update on Wednesday 26th March 2014.

 

Enquiries:

Analysts & Investors
Andy Long, Director of Strategy & Investor Relations
Tel: +44 (0)1293 645 795

Tej Randhawa, Investor Relations Manager
Tel: +44 (0)1293 645 829

Sarah Coomes, Investor Relations Manager
Tel: +44 (0)1293 645 827

Press
Lesley Allan, Corporate Communications Director
Tel: +44 (0)1293 645 790

Mike Ward, External Communications Manager
Tel: +44 (0)1293 645 776

Michael Sandler / Katie Matthews (Hudson Sandler)
Tel: +44 (0)20 710 8911

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