In the period under review, the TUI Group increased its turnover by 7.2% to €6.81 bill in the first half of its financial year (1st October, 2017 to 31st March, 2018) from €6.35 bill.
On a constant currency basis, the Group posted growth of 8.5% to €6.89 bill. The seasonal underlying EBITA loss was improved by 26% to € -158.6 mill, including several one-off effects (previous year €-214.3 mill).
On a constant currency basis, underlying EBITA improved by 29.8% to €-150.5 mill.
“We continue to deliver growth, all trends remain intact, and our very good trading performance for summer 2018 fully matches our expectations. At growth of 26% in our operating result and 7% in turnover, TUI Group concludes the first half of financial year 2018 with a very strong set of results, and we reiterate our full-year guidance,” said TUI Group CEO, Fritz Joussen (pictured) at the presentation of the Group’s 1H18 results on board the new ‘Mein Schiff 1’ in Hamburg.
He added: “The very good earnings growth of 26% in 1H18 is driven by the continued strong demand for our holiday experiences. We offer the right products in the market: TUI hotel brands such as RIU, Robinson and TUI Blue and in particular TUI Cruises’ Mein Schiff fleet are setting standards around the globe.
“Forecasts for cruising are excellent. German and European holidaymakers are beginning to embrace this way to travel. Due to demographic change, traditional target groups are growing. At the same time, sea voyages are becoming increasingly popular among families and younger people. The convergence of these two very promising trends will further accelerate growth over the next five to 10 years. And we are only at the beginning of this trend.”
Additional new vessels will be delivered to TUI Group’s cruise subsidiaries in 2018, 2019 and 2023 in order to further expand their market position. Moreover, TUI Group’s Supervisory and Executive Boards gave the green light for the construction of a third ‘Hanseatic’ expedition cruise ship for Hapag-Lloyd Cruises.
“This market is growing strongly. Thanks to its experience, competence and high quality standards, Hapag-Lloyd Cruises offers great potential to attract new international customer groups and deliver stronger growth in the expedition cruise segment,” said Joussen.
The Cruises segment remains on a growth path. The positive trends and forecasts for the next few years have also been confirmed by current growth rates. In the period under review, the segment delivered strong growth in underlying EBITA:
- Underlying EBITA: +23.2% to €92.4 mill (previous year €75 mill).
- Underlying EBITA at constant currency rates: +24% to €93 mill.
- Average rate per passenger per day:
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- TUI Cruises €148 (previous year €147).
- Marella Cruises £136 (previous year £127).
- Hapag-Lloyd Cruises €600 (previous year €595).
- Average occupancy:
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- TUI Cruises 98.9% (previous year 99.7%).
- Marella Cruises 99.6% (previous year 99.6%).
- Hapag-Lloyd Cruises %76.4 (previous year 73.8%).
Due to the continued rise in demand, TUI said that it is planning to expand the segment through additional new builds.
