DJ TUI Group Half-Year Financial Report 1 October 2023 - 31 March 2024
TUI AG (TUI)
TUI Group Half-Year Financial Report 1 October 2023 - 31 March 2024
15-May-2024 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
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Half-Year
Financial Report
1 October 2023 - 31 March 2024
Content
Interim Management Report
Summary
Report on changes in expected development
Consolidated earnings
Segmental performance
Financial position and net assets
Comments on the consolidated income statement
Alternative performance measures
Other segment indicators
Corporate Governance
Risk and Opportunity Report
Related parties
Unaudited condensed consolidated Interim Financial Statements
Notes
General
Accounting principles
Group of consolidated companies
Acquisitions - Divestments
Notes to the unaudited condensed consolidated Income Statement
Notes to the unaudited condensed consolidated Statement of Financial Position
Responsibility Statement
Review Report
Cautionary statement regarding forward-looking statements
Financial calendar
Contacts
This Half Year Financial Report of TUI Group was prepared for the reporting period from 1 October 2023 to 31 March
2024.
TUI AG
Karl-Wiechert-Allee 23
30625 Hannover
Germany
Interim Management Report
Summary
Record Q2 2024 performance, delivering highest ever revenues of EUR3.6bn and strong improvement in Q2 underlying EBIT by
EUR53.6m to EUR-188.7m[1]. Following our strong performance in H1 and as we see the positive trends in our business
continuing in H2, we reconfirm our FY24 guidance to increase our underlying EBIT by at least 25%.
-- Q2 Group revenue of EUR3.6bn was a record for the period1 with strong growth of +16% versus prior year (Q2
2023: EUR3.2bn). It underlined the strength of demand for our product portfolio at improved prices across our
businesses.
-- As a result, the Group's underlying EBIT for Q2 improved strongly by +EUR53.6m to EUR-188.7m. This emphasises
the progress we have made as a business in executing and advancing our strategy for the Group.
- Hotels & Resorts achieved a record performance in the quarter1, reflecting significant operational
growth driven by higher bed nights at improved rates.
- Similarly, our Cruises segment also delivered a record result for Q21, buoyed by significant growth.
This achievement was marked by higher occupancies and improved rates within a strong trading environment.
- TUI Musement continues to drive forward digitalisation and differentiated product innovation,
reporting higher customer volumes.
- In Markets & Airlines demand remained resilient with customer volumes ahead for all Regions and
prices continuing to track higher. Results were however influenced by the absence of the prior year's positive
contribution from Canada, following the sale of the tour operator business.
-- A total of 2.8m customers travelled with TUI during the quarter, +14% more than in the prior year.
Average load factor of 93% for Q2 2024 again achieved the high levels of the prior year.
-- Our net debt position further improved year-on-year by +EUR1.1bn to EUR3.1bn at 31 March 2024 (31 March 2023:
EUR4.2bn). This improvement reflects foremost net proceeds (following repayment of the final WSF obligations) from
our capital increase in April 2023 and a positive operational cash flow in the last twelve months since 31 March
2023.
-- We remain committed to improving our cash flow position and maintaining strict cost and investment
discipline, with the target to restore our balance sheet strength and improve our credit metrics.
-- During the quarter, we successfully issued EUR500 million sustainability-linked senior notes, as part of
our target to fully return and debt-finance the remaining KfW Revolving Credit Facility (RCF).
-- In February 2024, we saw a further improvement in our credit rating, which was upgraded to B+ by S&P and
B1 by Moody's, with both noting a positive outlook. These upgrades reflect the operational and financial progress
made by the business to date.
-- Bookings in Markets & Airlines[2] continue to be well ahead year-on-year, highlighting the resilience of
demand for our product offering. The Winter 2023/24 season closed with a strong lates market. Bookings were at +9%
with average selling price (ASP) holding up well at +3%. Bookings for the Summer 2024 season continue to be
promising, with 60% of the season sold. Bookings taken to date are +5% higher, supported by increased prices, up
+4%.
-- Holiday Experiences trading[3] remains well on track to deliver in line with expectations. Both our
Hotels & Resorts and Cruises segments in particular, continue to benefit from strong demand.
-- Our hedging levels for the coming Summer and Winter seasons remain in line with our normal hedging
policy.
FY 2024 guidance[4]
Our focus is on operational excellence and execution as well as the continued transformation. Our strategic roadmap,
the strong operational recovery and the measures taken to strengthen our balance sheet, lay the foundations for future
profitable growth. Our guidance for FY 2024 is based on the strong performance in H1 with underlying EBIT up +EUR232m[5]
supported by a significant improvement in Hotels and Cruises and by the return to our normal hedging policy in our
Markets & Airlines. We see the positive trends in our business continuing in H2, but also recognise the current
macroeconomic as well as geopolitical uncertainties especially in the Middle East, with 40% of the Summer 2024 left to
sell. We therefore reconfirm our guidance for FY 2024 as published in our Annual Report 2023:
- We expect revenue to increase by at least +10% year-on-year
- We expect underlying EBIT to increase by at least +25% year-on-year
Mid-Term Ambitions
We have a clear strategy to accelerate profitable growth by increasing the customer lifetime value, creating a business
which is more agile, more cost-efficient and achieving a higher speed to market with the aim to create additional
shareholder value. Our mid-term ambitions are as follows:
- Generate underlying EBIT growth of c. +7-10% CAGR
- Target net leverage[6] strongly below 1.0x
- Return to a credit rating territory in line with our pre-pandemic rating BB/Ba (S&P/Moody's)
Sustainability (ESG) as an opportunity[7]
-- As an industry leader, we want to set the standard for sustainability in the market. We believe that
sustainable transformation should not be viewed solely as a cost factor, but that sustainability pays off - for
society, for the environment, and for economic development. We continue to make progress to reduce relative
emissions and to achieve our targets. These include:
- The launch of a new Group Policy on Diverse, Sustainable and Ethical Sourcing. This policy sets targets
and gives guidance for all procurement regarding emission reduction, energy usage, circular economy, plastic use,
water conservation and design for re-use. It encompasses a broader ESG agenda, where diversity, equality, inclusion
and ethical conduct are paramount. The policy will support our goal to be a catalyst for positive change.
- TUI Blue is working with tech company KITRO to reduce food waste through technology. Leftover food is
weighed and analysed with the help of artificial intelligence. This year, the new process will be rolled out to 12
hotels in Germany, Austria, Turkey, Tunisia, Morocco and Croatia. The aim is to reduce food waste in hotels by 25
percent by 2030.
- TUI fosters socially responsible tourism, addressing concerns about scarce living space and environmental
impact. We operate organised packaged tourism that impacts local living space less, whilst we feel the current
critism is directed at the unregulated individual tourism on the Canaries. TUI is also committed to minimising
hotel emissions, reduce water consumption significantly, and investing in solar systems, within the next decade.
Despite protests highlighting issues such as rising housing prices and resource consumption, the general sentiment
towards tourists remains positive. We continue our efforts to balance tourism benefits with community well-being.
TUI Group - financial highlights
EUR million Q2 2024 Q2 2023 Var. % H1 2024 H1 2023 Var. % Var. % at constant
adjusted adjusted currency
Revenue 3,650.0 3,152.9 + 15.8 7,952.5 6,903.4 + 15.2 + 14.5
Underlying EBIT1
Hotels & Resorts 117.4 78.0 + 50.4 208.1 149.7 + 39.0 + 45.2
Cruises 70.1 14.8 + 373.5 104.5 15.0 + 598.6 + 592.5
TUI Musement - 16.5 - 12.7 - 29.4 - 27.1 - 26.2 - 3.5 + 5.9
Holiday Experiences 171.0 80.1 + 113.5 285.5 138.4 + 106.2 + 114.1
Northern Region - 164.9 - 147.5 - 11.8 - 215.3 - 269.5 + 20.1 + 22.7
Central Region - 89.1 - 102.1 + 12.7 - 87.8 - 131.1 + 33.0 + 33.6
Western Region - 72.1 - 59.2 - 21.7 - 118.4 - 102.1 - 15.9 - 15.2
Markets & Airlines - 326.1 - 308.5 - 5.7 - 421.5 - 502.4 + 16.1 + 17.8
All other segments - 33.6 - 13.9 - 141.3 - 46.7 - 31.3 - 48.9 - 49.2
Underlying EBIT1 TUI Group - 188.7 - 242.4 + 22.1 - 182.7 - 395.3 + 53.8 + 58.7
TUI Group - 177.3 - 242.4 + 26.8 - 163.3 - 395.3 + 58.7
(at constant currency)
EBIT1 - 194.9 - 247.6 + 21.3 - 194.7 - 406.3 + 52.1
Underlying EBITDA 15.6 - 42.9 n. a. 224.2 15.3 n. a.
EBITDA2 14.7 - 42.7 n. a. 222.7 15.3 n. a.
Group loss - 247.0 - 326.2 + 24.3 - 330.5 - 558.0 + 40.8
Earnings per share EUR - 0.58 - 1.26 + 54.0 - 0.82 - 2.15 + 61.9
Net capex and investment 276.2 68.9 + 301.1 320.1 217.8 + 46.9
Equity ratio (31 Mar)3 % - - 7.7 - 6.1 + 13.8
Net debt (31 Mar) 3,090.7 4,196.4 - 26.3
Employee (31 Mar) 56,370 53,961 + 4.5
Due to rounding, some of the figures may not add up precisely to the stated totals, and percentages may not precisely reflect the absolute figures. All change figures refer to the previous year, unless otherwise stated.
1 We define the EBIT in underlying EBIT as earnings before interest, income taxes and result of the measurement of the Group's interest hedges. For further details please see page 43.
2 EBITDA is defined as earnings before interest, income taxes and result of the measurement of the Group's interest hedges, goodwill impairment and amortisation and write-ups of other intangible assets, depreciation and write-ups of property, plant and equipment, investments and current assets.
3 Equity divided by balance sheet total in %, variance is given in percentage points.
The present Half Year Financial Report 2024 is based on TUI Group's reporting structure set out in the Consolidated Financial Statements of TUI AG as at 30 September 2023. See TUI Group Annual Report 2023 from page 28.
Due to the re-segmentation of an IT company from Western Region to All other segments in the current year the previous periods have been adjusted by EUR0.8m.
-- H1 2024 Group revenue was EUR8.0bn, up +15.2% (H1 2023: EUR6.9bn). The Group's H1 2024 seasonal operatingloss (underlying EBIT) declined by 53.8% to EUR-182.7m (H1 2023: EUR-395.3m).
Trading update Markets & Airlines[8] - Customer demand is proving to be resilient. Strong lates market for Winter season, with both bookings and ASP well ahead year-on-year, Summer season continues to be promising reflected by increased bookings and ASP
-- The Winter 2023/24 season closed with bookings up +9%. Notably, ASP also held up well at +3% in a stronglates market.
-- A total of 5.1m bookings were taken across our source markets for the season, with +0.7m added since ourQ1 2024 update in February 2024.
-- Short- and medium destinations proved to be most popular with our customers, with the Canaries and Egyptonce again key destinations and demand for Cape Verde continuing to grow.
-- Bookings across all our source markets were higher and notably both our key markets in UK and Germanyreported increased bookings levels compared to our last update as the season ended with ASP ahead of Winter 2022/23. In UK bookings closed up +11%, whilst bookings in Germany finished +10% higher.
Summer 2024 vs. Summer 2023 Variation in % Bookings + 5 ASP + 4
-- We are pleased to report, that current indications for Summer 2024[9] continue to be promising, with 60%of the programme sold, which is in line with Summer 2023.
-- With +3.9m bookings added since our last update in February, we have now taken a total of 9.0m bookingsfor the season to date. This is an increase of +5%, with our key markets ahead of prior year.
-- ASP of +4% continues to be ahead and holding the level reported in February 2024.
-- Demand for medium- and short-haul destinations continues to drive bookings, with all destinationsreporting higher sales against Summer 2023. Greece, Turkey and the Balearics are once again proving to be the mostsought-after destinations for the summer break.
-- UK sales are +3% ahead with 65% of the season sold to date. In our other key market Germany sales arewell ahead at +7% with 60% of the season sold.
-- We continue to closely monitor geopolitical events as they unfold, especially concerning the Middle Eastand around the Arabian Peninsula. Our flexible business model allows us the option to adjust capacity from theeastern to western Mediterranean should there be a further escalation of the conflict in this region which has asignificant and prolonged effect on customer demand.
Trading update Holiday Experiences[10] - Trading remains well on track to deliver in line with expectations
Trading H2 2024 Variation in % versus previous year Hotels & Resorts Available bed nights + 1 Occupancy + 1 Average daily rate + 9 Cruises Available passenger cruise days + 6 Occupancy + 7 Average daily rate + 2 TUI Musement Experiences sold + high single-digit Transfers in line with Markets & Airlines
-- Hotels & Resorts - Number of available bed nights[11] for H2 is up +1%, supported by an earlier start tothe season. Booked occupancy[12] to date is +1%pt ahead as the strong demand for our hotel portfolio witnessed inthe prior year continues. Average daily rates[13] are well ahead across our key brands, with overall rates up +9%for H2. Key destinations for the half-year are expected to be Turkey, Greece and the Balearics.
-- Cruises - Our three brands will continue to operate a full fleet of initially sixteen ships over thesummer period, with Mein Schiff 7 joining the TUI Cruises fleet in June. Available passenger cruise days[14] onoffer in H2 are +6% supported by the additional ship for TUI Cruises and despite the cancellation of someitineraries around the Arabian Peninsula impacting our operational improvement in the second half of the financialyear. Booked occupancy[15] rates are up +7%pts across both businesses, supported by stronger demand for theitineraries on sale. As a result, average daily rates[16] for H2 are ahead by between +3% and +5% across theindividual cruise lines and at +2% overall, due to a change in the brand mix with the additional new ship for MeinSchiff and transfer of Marella Voyager within the segment. For the summer season Cruises offers a broad range ofroutes. Mein Schiff, with its fleet of seven ships, will sail to the Mediterranean, Northern Europe, Baltic Sea andNorth America, with the Hapag-Lloyd Cruises programme focusing on Europe, North America, Asia as well as voyages tothe Arctic, based on a fleet of five vessels. Marella, with its fleet of five ships will operate itineraries acrossthe Mediterranean.
-- TUI Musement - We are continuing the expansion of our Tours and Activities business, increasing our rangeof B2C experiences as well as growing our B2B business with partners and anticipate a higher volume of transfersand experiences sales supported by our Markets & Airlines business. Bookings for our experiences business,providing excursions, activities and tickets are expected to increase by a high single digit percentage for H2. Thetransfer business providing support and services to our guests in their destination, is expected to develop in linewith our Markets & Airlines capacity assumptions.
Strategic priorities
We continue to drive forward our TUI Group strategy as outlined in the Annual Report 2023[17]. Our aim is to grow a scalable and global tourism business and we have ambitious profitability targets.
Within this framework we are transforming the business and have recently achieved further milestones. These include the following: - The growth of our hotel portfolio is driven by a strong pipeline of hotels. Our target is to sign aroundten new hotels per quarter. By the end of the financial year, we aim to add around 20 new hotels to the business inline with our asset right growth strategy. As part of this strategy, we recently announced the opening of our firstRobinson Club in the trend destination Vietnam. In addition, we are strengthening our presence across Sub-SaharanAfrica. After launching our new luxury brand "The Mora" on Zanzibar, a further project is planned in East Africawhere we have signed for our first TUI Blue hotel in Kenya. - In Cruises our product growth is driven by investment into new build ships by our TUI Cruises jointventure. In June the first of three new ships sets sail. The Mein Schiff 7 adds almost three thousand berths to thefleet. It will be powered by marine diesel and in the future is planned to run on green methanol. Itinerariesduring the first summer season will focus on Northern Europe and Baltic Sea voyages, whilst in the upcoming winterseason routes will be around the Canaries. - Through TUI Musement, the Group has a scalable platform in the tours and activities market. Recently, weannounced that the business will be the new partner for online travel agent loveholidays. TUI Musement will power adigital platform with a curated portfolio of thousands of excursions, activities and attraction tickets, whichcustomers of the OTA can now directly access. The offering to loveholidays customers includes options from the TUICollection range developed by the TUI team. Furthermore, loveholidays customers can book National Geographic DayTours, which have been created by TUI in collaboration with National Geographic Expeditions. - In Markets & Airlines we have delivered further progress in increasing the volume and proportion ofdynamic packaging and supply, to deliver choice, flexibility and hence growth, without increasing operationalleverage. A key example of this is our co-operation with Ryanair, announced in February 2024, which means TUIcustomers will be able to choose from an even wider range of flights when booking their trip. We have also furtherexpanded the dynamic supply of accommodation and flights with multiple other suppliers. In addition, we have madefurther progress on quality, delivering a net promoter score of 52 in April year to date.
We also aim to further improve our net leverage, focusing on optimising working capital and cash from operations and maintaining disciplined capital expenditure through asset right and joint venture growth. This will support improving the structure of our balance sheet with the aim to bring our net leverage[18] down well below 1.0x in the mid-term. In this context, we successfully issued EUR500 million sustainability-linked senior notes during the quarter with a coupon of 5.875%. This issuance is part of our target to fully return and debt-finance the remaining KfW Revolving Credit Facility (RCF). The issue proceeds have been used to repay existing liabilities, reduce the KfW credit line and cover expenses associated with the bond. The coupon of the notes is linked to the achievement of a specific sustainability target, which is to reduce TUI Group's Airlines CO2e-emissions per Revenue Passenger Kilometer[19] by at least 11% by the end of the financial year ending on 30 September 2026 (compared to the financial year that ended 30 September 2019). In February 2024, we saw a further improvement in our credit rating, which was upgraded to B+ by S&P and B1 by Moody's, with both noting a positive outlook. These upgrades reflect the operational and financial progress made by the business to date.
Report on changes in expected development
We re-confirm all our expectations for financial year 2024 set out in the Annual Report 2023. See TUI Group Annual Report 2023 from page 56 onwards.
Consolidated earnings
Revenue
EUR million Q2 2024 Q2 2023 Var. % H1 2024 H1 2023 Var. %
Hotels & Resorts 247.3 218.3 + 13.3 499.0 429.2 + 16.3
Cruises 216.9 141.9 + 52.9 383.8 257.1 + 49.3
TUI Musement 149.5 130.3 + 14.7 344.4 290.0 + 18.8
Holiday Experiences 613.8 490.5 + 25.1 1,227.2 976.4 + 25.7
Northern Region 1,348.5 1,191.5 + 13.2 2,790.0 2,534.6 + 10.1
Central Region 1,158.1 990.8 + 16.9 2,791.5 2,375.9 + 17.5
Western Region 527.4 477.6 * + 10.4 1,140.0 1,012.6 + 12.6
Markets & Airlines 3,034.1 2,660.0 * + 14.1 6,721.6 5,923.2 + 13.5
All other segments 2.1 2.4 * - 9.5 3.7 3.9 - 3.2
TUI Group 3,650.0 3,152.9 + 15.8 7,952.5 6,903.4 + 15.2
TUI Group (at constant currency) 3,602.4 3,152.9 + 14.3 7,906.3 6,903.4 + 14.5
Underlying EBIT
EUR million Q2 2024 Q2 2023 Var. % H1 2024 H1 2023 Var. %
adjusted adjusted
Hotels & Resorts 117.4 78.0 + 50.4 208.1 149.7 + 39.0
Cruises 70.1 14.8 + 373.5 104.5 15.0 + 598.6
TUI Musement - 16.5 - 12.7 - 29.4 - 27.1 - 26.2 - 3.5
Holiday Experiences 171.0 80.1 + 113.5 285.5 138.4 + 106.2
Northern Region - 164.9 - 147.5 - 11.8 - 215.3 - 269.5 + 20.1
Central Region - 89.1 - 102.1 + 12.7 - 87.8 - 131.1 + 33.0
Western Region - 72.1 - 59.2 * - 21.7 - 118.4 - 102.1 * - 15.9
Markets & Airlines - 326.1 - 308.5 * - 5.7 - 421.5 - 502.4 * + 16.1
All other segments - 33.6 - 13.9 * - 141.3 - 46.7 - 31.3 * - 48.9
TUI Group - 188.7 - 242.4 + 22.1 - 182.7 - 395.3 + 53.8
TUI Group (at constant currency) - 177.3 - 242.4 + 26.8 - 163.3 - 395.3 + 58.7
EBIT
EUR million Q2 2024 Q2 2023 Var. % H1 2024 H1 2023 Var. %
adjusted adjusted
Hotels & Resorts 117.4 78.2 + 50.1 209.2 149.2 + 40.2
Cruises 70.1 14.8 + 373.5 104.5 15.0 + 598.6
TUI Musement - 17.9 - 14.5 - 23.3 - 30.0 - 28.5 - 5.5
Holiday Experiences 169.5 78.5 + 116.0 283.7 135.7 + 109.0
Northern Region - 168.7 - 148.6 - 13.5 - 220.4 - 274.4 + 19.7
Central Region - 89.5 - 102.5 + 12.7 - 89.4 - 131.5 + 32.0
Western Region - 72.7 - 60.1 * - 21.0 - 116.9 - 102.0 * - 14.7
Markets & Airlines - 331.0 - 310.9 * - 6.4 - 426.8 - 507.5 * + 15.9
All other segments - 33.5 - 15.1 * - 121.3 - 51.6 - 34.5 * - 49.5
TUI Group - 194.9 - 247.6 + 21.3 - 194.7 - 406.3 + 52.1
* Due to the re-segmentation of an IT company from Western Region to All other segments in the current year the previous periods have been adjusted.
Segmental performance
Holiday Experiences
EUR million Q2 2024 Q2 2023 Var. % H1 2024 H1 2023 Var. %
Revenue 613.8 490.5 + 25.1 1,227.2 976.4 + 25.7
Underlying EBIT 171.0 80.1 + 113.5 285.5 138.4 + 106.2
Underlying EBIT at constant currency 176.5 80.1 + 120.3 296.4 138.4 + 114.1
Hotels & Resorts
EUR million Q2 2024 Q2 2023 Var. % H1 2024 H1 2023 Var. %
Total revenue1 416.7 358.2 + 16.3 865.1 742.9 + 16.4
Revenue 247.3 218.3 + 13.3 499.0 429.2 + 16.3
Underlying EBIT 117.4 78.0 + 50.4 208.1 149.7 + 39.0
Underlying EBIT at constant currency 123.0 78.0 + 57.6 217.4 149.7 + 45.2
Available bed nights2 ('000) 7,642 7,018 + 8.9 16,456 15,565 + 5.7
Riu 3,379 3,188 + 6.0 6,897 6,412 + 7.6
Robinson 604 647 - 6.6 1,385 1,471 - 5.9
Blue Diamond 1,564 1,601 - 2.3 3,083 2,963 + 4.0
Occupancy3 (%, variance in % points) 81 83 - 2 79 79 -
Riu 93 93 - 91 89 + 2
Robinson 70 67 + 3 71 68 + 3
Blue Diamond 95 87 + 8 89 86 + 3
Average daily rate4 (EUR) 109 100 + 9.1 99 92 + 7.0
Riu 91 83 + 10.5 87 80 + 8.6
Robinson 123 112 + 9.7 114 106 + 7.7
Blue Diamond 181 165 + 9.2 167 159 + 4.8
Revenue includes fully consolidated companies, all other KPIs incl. companies measured at equity
1 Total revenue includes intra-Group revenue
2 Number of hotel days open multiplied by beds available (Group owned and leased hotels)
3 Occupied beds divided by available beds (Group owned and leased hotels)
4 Board and lodging revenue divided by occupied bed nights (Group owned and leased hotels)
The Hotels & Resorts portfolio is well-diversified in terms of product offer, destination mix and ownership models, and benefits from multi-channel and multi-source market distribution via Markets & Airlines, direct to customer,
and via third parties such as Online Travel Agents (OTAs) and tour operators mainly outside our own source markets.
H1 2024 total revenue grew to EUR865.1m, an improvement of +16.4% (H1 2023: EUR742.9m). As a result, H1 2024 underlying EBIT of EUR208.1m was up +EUR58.4m (H1 2023: EUR149.7m) continuing the strong development of the segment post pandemic.
In Q2 2024 the segment achieved the highest ever total revenue of EUR416.7m1, an increase of +16.3% (Q2 2023: EUR358.2m), predominantly due to higher bed nights and increased rates. As a result, the business contributed a record Q2 underlying EBIT of EUR117.4m[20], up +EUR39.4m (Q2 2023: EUR78.0m). Results were driven in particular by a stronger operational performance across our key hotel brands and in particular for Riu. The Canaries, Cape Verde and Mexico continue to be popular destinations with our guests during this winter period, achieving high volumes at improved rates.
In the quarter a total of 7.6m available bed nights (capacity) were on offer equating to an increase of +9% and reflecting higher capacities in particular for Riu, as a result of fewer hotel renovations. Occupancy rates for the segment continue to maintain their high levels especially for our key brands. Overall occupancy was at 81%, which was
-2%pts, due to higher available bed nights and the earlier opening in some of the Other hotels. Our hotels in the Caribbean achieved the highest occupancies, rising +4%pts to 96%.
Q2 2024 average daily rate rose by +9% to EUR109 supported by an improvement across our key brands.
Cruises
EUR million Q2 2024 Q2 2023 Var. % H1 2024 H1 2023 Var. %
Revenue1 216.9 141.9 + 52.9 383.8 257.1 + 49.3
Underlying EBIT 70.1 14.8 + 373.5 104.5 15.0 + 598.6
Underlying EBIT at constant currency 69.2 14.8 + 367.9 103.6 15.0 + 592.5
Available passenger cruise days2 ('000) 2,327 2,391 - 2.6 4,663 4,775 - 2.3
Mein Schiff 1,346 1,600 - 15.9 2,775 3,223 - 13.9
Hapag-Lloyd Cruises 147 145 + 1.1 293 294 - 0.2
Marella Cruises 835 645 + 29.4 1,595 1,258 + 26.8
Occupancy3 (%, variance in % points) 98 92 + 6 97 90 + 7
Mein Schiff 100 93 + 7 100 91 + 9
Hapag-Lloyd Cruises 77 67 + 10 75 66 + 9
Marella Cruises 99 95 + 4 96 93 + 3
Average daily rate (EUR) 221 184 + 20.2 213.0 179.6 + 18.6
Mein Schiff4 169 136 + 24.9 169 137 + 23.5
Hapag-Lloyd Cruises4 772 780 - 1.0 726 725 + 0.2
Marella Cruises5 (in GBP) 197 181 + 8.7 188 170 + 10.2
1 Revenue is not included for Mein Schiff and Hapag-Lloyd Cruises as the joint venture TUI Cruises is consolidated at
equity
2 Number of operating days multiplied by berths available on the operated ships.
3 Achieved passenger cruise days divided by available passenger cruise days
4 Ticket revenue divided by achieved passenger cruise days
5 Revenue (stay on ship inclusive of transfers, flights and hotels due to the integrated nature of Marella Cruises)
divided by achieved passenger cruise days
The Cruises segment comprises the joint venture TUI Cruises in Germany, which operates cruise ships under the brands Mein Schiff and Hapag-Lloyd Cruises, and Marella Cruises in UK. These three brands cover the cruises sector from premium all-inclusive to luxury and expeditions, with leading positions in the German-speaking and UK markets and benefitting from multi-channel distribution via Markets & Airlines, direct to customer as well as via third parties. As in the previous year, the segment operated a full fleet of 16 ships during the quarter.
Cruises revenue only includes Marella Cruises, as TUI Cruises is reported at equity. Revenue in H1 2024 increased by +49.3% to EUR383.8m (H1 2023: EUR257.1m). H1 2024 underlying EBIT for the segment (including the equity result of TUI Cruises) improved to EUR104.5m, an increase of +EUR89.6m (H1 2023: EUR15.0m).
Q2 2024 revenue reflecting Marella Cruises only, rose to EUR216.9m, up +52.9% (Q2 2023: EUR141.9m). Q2 2024 underlying EBIT (including the equity result of TUI Cruises), was a record EUR70.1m[21], increasing +EUR55.3m (Q2 2023: EUR14.8m), as both TUI Cruises and Marella Cruises maintained their positive development. TUI Cruises achieved an EAT (Earning after Tax) of EUR43.6m, +EUR25.2m higher (Q2 2023: EUR18.4m). Key contributors to this improvement were foremost higher occupancies and rates. Available passenger cruise days for the segment of 2.3m were -3% overall (Q2 2023: 2.4m), due to a change in itineraries.
Mein Schiff - Mein Schiff operated their full fleet of six ships during the quarter compared to a fleet of seven vessels in the prior year following the transfer of Mein Schiff Herz to Marella Cruises in the prior year. The brand offered itineraries to the Canaries, the Orient, the Caribbean, Central America, Asia and Northern Europe. Occupancy of the operated fleet continued to improve, reaching 100% in the period under review (Q2 2023: 93%), which was above pre-pandemic levels. At EUR169, the average daily rate was +25% higher (Q2 2023: EUR136). Both performance indicators emphasis the strong demand for our German language, premium all-inclusive product.
Hapag-Lloyd Cruises - The brand is a leading provider of luxury and expeditions cruises in German speaking markets. As in the prior year, the fleet comprised two luxury liners and three expedition cruise ships. During the quarter itineraries were focused on Europe, the Americas, the Caribbean, South Pacific as well as voyages to Antarctica. Q2 occupancy of the fleet was 77% (Q2 2023: 67%), underlining the growth in demand for these cruises. Q2 average daily rate was EUR772, -1% year-on-year (Q2 2023: EUR780) as a result of increased occupancy.
Marella Cruises - Our UK brand offers a range of cruise experiences, with a fully all-inclusive fleet. Following the commissioning of the Marella Voyager, formerly Mein Schiff Herz, which complimented the fleet last year in time for the Summer 2023 season, the brand is now made up of five vessels. During the quarter, Marella Cruises operated itineraries to the Canaries, the Caribbean, as well as Asia. The Q2 average daily rate for the business of GBP197 was up +9% (Q2 2023: GBP181), whilst occupancy rose by 4%pts. to 99%, versus a prior year Q2 of 95%, emphasising the growing popularity of this product.
TUI Musement EUR million Q2 2024 Q2 2023 Var. % H1 2024 H1 2023 Var. % Total revenue1 207.9 176.1 + 18.0 476.4 400.3 + 19.0 Revenue 149.5 130.3 + 14.7 344.4 290.0 + 18.8 Underlying EBIT - 16.5 - 12.7 - 29.4 - 27.1 - 26.2 - 3.5 Underlying EBIT at constant currency - 15.8 - 12.7 - 23.9 - 24.7 - 26.2 + 5.9 1 Total revenue includes intra-Group revenue
TUI Musement is a leading Tours & Activities business that combines a highly curated product portfolio, scalable digital platforms and in-destination service, to provide experiences (excursions, activities and attraction tickets), transfers, and multi-day tours.
H1 2024 revenue of EUR344.4m, was up +18.8% (H1 2023: EUR290.0m). H1 2024 underlying EBIT was EUR-0.9m at
EUR-27.1m (H1 2023: EUR-26.2m).
Q2 2024 revenue increased by +14.7% to EUR149.5m (Q2 2023: EUR130.3m) underlining the growth in this segment and the advantage of our integrated model as well as growth of third-party sales via B2B partners utilising the TUI Musement platform technology. Underlying EBIT of EUR-16.5m was EUR-3.7m (Q2 2023: EUR-12.7m), as the business continues to focus on the expansion of its B2C experiences offering, while also increasing B2B partnerships and higher transfer and experiences volumes to our Markets & Airlines business, as well as the growth of its differentiated own product portfolio globally.
The number of guest transfers in the destinations rose by +14% to 3.9m (Q2 2023: 3.4m). Additionally, 1.5m experiences were sold in the quarter, up +9% (Q2 2023: 1.3m), as the business continues to grow. Experiences include the expansion of our own portfolio of experiences which rose +11% to 0.7m in Q2 year-on-year, and also encompass our flagship TUI Collection products. These products have been developed by the TUI team in conjunction with local operators. Top sellers during the period included the Chichen Itza ruins and Maya Village Tour in Mexico as well as the Timanfaya Volcanic Tour on Lanzarote.
Markets & Airlines
EUR million Q2 2024 Q2 2023 Var. % H1 2024 H1 2023 Var. %
adjusted adjusted
Revenue 3,034.1 2,660.0 + 14.1 6,721.6 5,923.2 + 13.5
Underlying EBIT - 326.1 - 308.5 - 5.7 - 421.5 - 502.4 + 16.1
Underlying EBIT at constant currency - 320.2 - 308.5 - 3.8 - 412.9 - 502.4 + 17.8
Direct distribution mix1 75 76 - 1 74 75 - 1
(in %, variance in % points)
Online mix2 52 52 - 51 52 - 1
(in %, variance in % points)
Customers ('000) 2,778 2,439 + 13.9 6,293 5,743 + 9.6
1 Share of sales via own channels (retail and online)
2 Share of online sales
Our Markets & Airlines business covers the whole customer journey. We differentiate ourselves from the competition (such as tour operators, OTAs, hotels and airlines) based on our products, services, customer care and trust, and by following a customer-centric approach.
H1 2024 revenue of EUR6,721.6m was 13.5% higher (H1 2023: EUR5,923.2m). H1 2024 underlying EBIT was EUR-421.5m, reflecting the usual winter season loss for the sector and was an improvement of EUR80.9m (H1 2023: EUR-502.4m).
Q2 2024 revenue of EUR3,034.1m, the highest ever for the quarter[22], rose by +14.1% (Q2 2023: EUR2,660.0m). Demand remains resilient, with volumes +14% ahead for all Regions and prices continuing to track higher across our product offering and up +3% for the quarter. As expected, whilst results benefitted from a return to normal hedging conditions, results in Q2 were also impacted by prior year still being supported by positive results from our tour operator venture in Canada, which was sold in May 2023. As a consequence Q2 2024 underlying EBIT was EUR-17.6m lower at EUR-326.1m (Q2 2023: EUR-308.5m).
In particular the Canaries, Mainland Spain, Egypt and Cape Verde proved to be highly sought after destinations from our short- and medium-haul programme. Mexico, Thailand, and the Dominican Republic again underlined their popularity as long-haul destinations with our customer.
In the quarter, customer volumes increased by 339k to 2,778k. Average load factor of 93% for Q2 2024, again achieved the high levels of the prior year quarter (Q2 2023: 93%).
Our strategic initiative to accelerate the Group's transformation into a digital platform business continues to take shape. We remain focused on enhancing our app, and in particular our native book flows, targeting further growth in the proportion of digital sales made in-app. During the reported period, TUI app sales made up 6.8% of total sales, increasing across all markets and rising significantly overall by a total of 55%. Demand for our dynamically packaged products, providing our customers with greater choice and flexibility, also continues to grow, supported by the roll-out of our group-wide platforms. In total, 0.4m of our customers chose to enjoy a dynamically packaged product in the quarter, up 30% (Q2 2023: 0.3m).
Northern Region
EUR million Q2 2024 Q2 2023 Var. % H1 2024 H1 2023 Var. %
Revenue 1,348.5 1,191.5 + 13.2 2,790.0 2,534.6 + 10.1
Underlying EBIT - 164.9 - 147.5 - 11.8 - 215.3 - 269.5 + 20.1
Underlying EBIT at constant currency - 159.2 - 147.5 - 7.9 - 208.2 - 269.5 + 22.7
Direct distribution mix1 92 92 - 93 93 -
(in %, variance in % points)
Online mix2 69 67 + 2 68 68 -
(in %, variance in % points)
Customers ('000) 1,074 945 + 13.6 2,314 2,153 + 7.5
1 Share of sales via own channels (retail and online)
2 Share of online sales
Northern Region is made up of the source markets UK and Nordics after we sold our tour operator venture in Canada in May 2023.
H1 2024 revenue of EUR2,790.0m was +10.1% higher (H1 2023: EUR2,534.6m). Underlying EBIT of EUR-215.3m improved by +EUR54.2m for the same period (H1 2023: EUR-269.5m).
In Q2 2024 revenue was up by +13.2% to EUR1,348.5m (Q2 2023: EUR1,191.5m). The underlying EBIT for the quarter was EUR-164.9m, reflecting a year-on-year change of EUR-17.4m (Q2 2023: EUR-147.5m). Results were impacted by prior year still being supported by positive results from our tour operator venture in Canada, which was sold in May 2023. Both our ongoing operations in UK and Nordic reported higher results supported by increased volumes at higher prices.
Q2 2024 customer volumes increased by +13.6% to 1,074k (Q2 2023: 945k) which was +6% above pre-pandemic levels. Online distribution rose +2%pts to 69% (Q2 2023: 67%) and remained particularly high in the Nordic region. Direct distribution was at 92% maintaining the high rate of the prior year (Q2 2023: 92%) and pre-pandemic levels.
Central Region
EUR million Q2 2024 Q2 2023 Var. % H1 2024 H1 2023 Var. %
Revenue 1,158.1 990.8 + 16.9 2,791.5 2,375.9 + 17.5
Underlying EBIT - 89.1 - 102.1 + 12.7 - 87.8 - 131.1 + 33.0
Underlying EBIT at constant currency - 89.0 - 102.1 + 12.9 - 87.0 - 131.1 + 33.6
Direct distribution mix1 54 55 - 1 53 54 - 1
(in %, variance in % points)
Online mix2 29 30 - 1 28 29 - 1
(in %, variance in % points)
Customers ('000) 975 829 + 17.5 2,358 2,061 + 14.4
1 Share of sales via own channels (retail and online)
2 Share of online sales
Central Region is made up of the source markets Germany, Austria, Switzerland and Poland.
H1 2024 revenue of EUR2,791.5m was up +17.5% (H1 2023: EUR2,375.9m). During the same period, underlying EBIT was EUR-87.8m, an increase of +EUR43.3m (H1 2023: EUR-131.1m).
Q2 2024 revenue of EUR1,158.1m, improved by +16.9% (Q2 2023: EUR990.8m). Underlying EBIT increased by +EUR13.0m to EUR-89.1m (Q2 2023: EUR-102.1m), supported in particular by a stronger performance in Germany as a result of increased customer volumes and prices.
Customer volumes increased in total by +17.5% to 975k guests (Q2 2023: 829k). All markets contributed to this growth, with the increase driven by our key German source market and further expansion in Poland. Online distribution was 1%pt lower at 29%. Direct distribution was also just shy of the previous year at 54% (Q2 2023 of 55%).
Western Region
EUR million Q2 2024 Q2 2023 Var. % H1 2024 H1 2023 Var. %
adjusted adjusted
Revenue 527.4 477.6 + 10.4 1,140.0 1,012.6 + 12.6
Underlying EBIT - 72.1 - 59.2 - 21.7 - 118.4 - 102.1 - 15.9
Underlying EBIT at constant currency - 72.0 - 59.2 - 21.5 - 117.6 - 102.1 - 15.2
Direct distribution mix1 76 77 - 1 76 78 - 2
(in %, variance in % points)
Online mix2 59 59 - 59 61 - 2
(in %, variance in % points)
Customers ('000) 729 665 + 9.7 1,621 1,528 + 6.1
1 Share of sales via own channels (retail and online)
2 Share of online sales
Western Region is made up of the source markets Belgium, Netherlands and France.
H1 2024 revenue rose by +12.6% to EUR1,140.0m (H1 2023: EUR1,012.6m). H1 2024 underlying EBIT of EUR-118.4m was EUR16.2m lower (H1 2023: EUR-102.1m).
The segment reported Q2 2024 revenue of EUR527.4m, up +10.4% (Q2 2023: EUR477.6m). Q2 underlying EBIT of EUR-72.1m, decreased by EUR12.9m (Q2 2023: EUR-59.2m). Improved volumes and prices for the Region were offset by costs relating to the transformational development of the business, including higher investment in IT.
Customer volumes increased by +9.7% to 729k guests (Q2 2023: 665k). Online distribution for the region stood at 59%, on a par with the prior year. Direct distribution was down 1%pts to 76% (Q2 2023: 77%).
All other segments
EUR million Q2 2024 Q2 2023 Var. % H1 2024 H1 2023 Var. %
adjusted adjusted
Revenue 2.1 2.4 - 9.5 3.7 3.9 - 3.2
Underlying EBIT - 33.6 - 13.9 - 141.3 - 46.7 - 31.3 - 48.9
Underlying EBIT at constant currency) - 33.6 - 13.9 - 141.5 - 46.8 - 31.3 - 49.2
All other segments includes the corporate centre functions of TUI AG and the interim holdings, the Group's real estate companies and the Group's key tourism functions.
H1 2024 underlying EBIT stood at EUR-46.7m (H1 2023: EUR-31.3m). Q2 2024 underlying EBIT of EUR-33.6m, increased by EUR-19.7m (Q2 2023: EUR-13.9m), primarily due to valuation effects.
Financial position and net assets
Cash Flow / Net capex and investments / Net debt
TUI Group's operating cash outflow in H1 2024 of EUR268.5m decreased by 5.6% year-on-year This reflects the lower Group loss, which was partly offset by a higher cash outflow for prepayments for touristic services.
Net debt as at 31 March 2024 of EUR3.1bn decreased by EUR1.1bn compared to previous year level (31 March 2024: EUR4.2bn). This improvement was mainly driven by net proceeds (following repayment of the final WSF obligations) from our capital increase in April 2023 and the positive cash flow from operating activities in the last twelve months since 31 March 2023.
Net debt
EUR million 31 Mar 2024 31 Mar 2023 Var. %
Financial debt 2,074.1 2,994.1 - 30.7
Lease liabilities 2,718.0 2,834.5 - 4.1
Cash and cash equivalents 1,648.2 1,575.9 + 4.6
Short-term interest-bearing investments 53.2 56.3 - 5.5
Net debt 3,090.7 4,196.4 - 26.3
Net capex and investments
EUR million Q2 2024 Q2 2023 Var. % H1 2024 H1 2023 Var. %
adjusted adjusted
Cash gross capex
Hotels & Resorts 126.2 62.0 + 103.5 153.5 133.4 + 15.1
Cruises 7.7 15.7 - 51.0 29.5 43.7 - 32.5
TUI Musement 5.9 7.7 - 23.4 11.2 13.0 - 13.8
Holiday Experiences 139.8 85.4 + 63.7 194.1 190.1 + 2.1
Northern Region 6.3 5.5 + 14.5 11.3 11.1 + 1.8
Central Region 3.6 4.2 - 14.3 8.0 6.2 + 29.0
Western Region 6.1 6.6 - 7.6 13.5 10.5 + 28.6
Markets & Airlines1 21.4 15.5 + 38.1 38.7 48.4 - 20.0
All other segments 31.3 34.6 - 9.5 65.0 66.4 - 2.1
TUI Group 192.5 135.5 + 42.1 297.7 305.0 - 2.4
Net pre delivery payments on aircraft 5.0 - 24.0 n. a. 66.2 35.0 + 89.1
Financial investments2 77.4 - n. a. 78.8 0.3 n. a.
Divestments 1.3 - 42.6 n. a. - 122.6 - 122.4 - 0.2
Net capex and investments 276.2 68.9 + 300.9 320.1 217.8 + 47.0
1 Including EUR5.4m for Q2 2024 (Q2 2023: - EUR0.8m) and EUR5.9m for H1 2024 (H1 2023: EUR20.6m) cash gross capex of the aircraft leasing companies, which are allocated to Markets & Airlines as a whole, but not to the individual segments Northern Region, Central Region and Western Region. 2 Thereof EUR73.5m related to the pro rata capital injection into Pep Toni Hotels S.A. in Q2 2024
Cash gross capex in H1 2024 of EUR297.7m was EUR7.3m lower year-on-year. The increase in the Hotel & Resorts segment was mainly due to higher investments at Riu. In the period under review, financial investments of EUR73.5m related to the pro rata capital injection into Pep Toni Hotels S. A. Net capex and investments totaling EUR320.1m in H1 2024 increased by EUR102.3m compared to the previous year.
Foreign exchange/Fuel
We have a strategy of hedging the majority of our jet fuel and currency requirements for future seasons in place. Our hedging policy 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 Markets & Airlines.
Foreign Exchange/Fuel % Summer 2024 Winter 2024/25 Summer 2025 Euro 94 63 20 US Dollar 94 77 40 Jet Fuel 93 77 52 As at 5 May 2024 Assets and liabilities EUR million 31 Mar 2024 30 Sep 2023 Var. % Non-current assets 11,899.9 11,605.9 + 2.5 Current assets 4,328.2 4,546.5 - 4.8 Total assets 16,228.1 16,152.4 + 0.5 Equity 1,248.2 1,947.2 - 35.9 Provisions 1,876.5 1,852.4 + 1.3 Financial liabilities 2,074.1 1,297.0 + 59.9 Other liabilities 11,029.2 11,055.8 - 0.2 Total equity, liabilities and provisions 16,228.1 16,152.4 + 0.5
Non-current financial liabilities increased from EUR580.7m at 30 September 2023 to EUR1,779.2m at 31 March 2024. This increase primarily results from an increase in liabilities to banks and from the issuance of a sustainability-linked bond in March 2024.
For more details refer to the section Financial liabilities in the Notes of this Half Year Financial Report.
Comments on the consolidated income statement
In the first six months of financial year 2024, TUI Group's revenue was strongly higher than in H1 2023, due to a year-on-year increase in pax numbers and higher average prices, in particular in Markets & Airlines. TUI Group's results generally also reflect the significant seasonal swing in tourism between the winter and summer travel months.
In H1 2024, consolidated revenue increased by EUR1.0bn year-on-year to EUR8.0bn.
Unaudited condensed consolidated Income Statement of TUI AG for the period from 1 Oct 2023 to 31 Mar 2024
EUR million Q2 2024 Q2 2023 Var. H1 2024 H1 2023 Var. %
%
Revenue 3,650.0 3,152.9 +15.8 7,952.5 6,903.4 +15.2
Cost of sales 3,651.3 3,228.5 +13.1 7,757.7 6,889.8 +12.6
Gross profit - 1.3 - 75.6 +98.3 194.8 13.7 n. a.
Administrative expenses 283.2 250.7 +13.0 528.6 493.4 +7.1
Other income 1.2 5.7 - 8.5 11.7 - 27.4
78.9
Other expenses 1.8 - 1.1 n. a. 10.1 4.7 +114.9
Impairment (+) / Reversal of impairment (-) of financial assets - 2.7 n. a. - 7.2 3.5 n. a.
Financial income 20.8 19.9 +4.5 39.5 38.3 +3.1
Financial expense 126.0 152.4 - 247.8 284.9 - 13.0
17.3
Share of result of investments accounted for using the equity 90.3 78.4 +15.2 133.4 74.0 +80.3
method
Earnings before income taxes - 300.0 - 376.3 +20.3 - 403.1 - 648.8 +37.9
Income taxes (expense (+), income (-)) - 53.0 - 50.0 - 6.0 - 72.6 - 90.8 +20.0
Group loss - 247.0 - 326.2 +24.3 - 330.5 - 558.0 +40.8
Group loss attributable to shareholders of TUI AG - 294.2 - 364.3 +19.2 - 416.8 - 620.4 +32.8
Group profit attributable to non-controlling interest 47.2 38.1 +23.9 86.3 62.4 +38.3
Alternative performance measures
The Group's main financial KPI is underlying EBIT. We define the EBIT in underlying EBIT as earnings before interest, income taxes and the result from the measurement of the Group's interest hedges. EBIT by definition includes goodwill impairments.
In calculating Underlying EBIT from EBIT, we adjust for separately disclosed items (including any goodwill impair-ment) and expenses from purchase price allocations. Separately disclosed items include adjustments for income and expense items that reflect amounts and frequencies of occurrence rendering an evaluation of the operating profitability of the segments and Group more difficult or causing distortions. These items include gains on disposal of financial investments, significant gains and losses from the sale of assets as well as significant restructuring and integration expenses and any goodwill impairments. Effects from purchase price allocations, ancillary acquisition costs and conditional purchase price payments are adjusted. Expenses from purchase price allocations relate to the amortisation of intangible assets from acquisitions made in previous years.
Reconciliation to underlying EBIT
EUR million Q2 Q2 Var. H1 H1 Var.
2024 2023 % 2024 2023 %
Earnings before income taxes - - +20.3 - - +37.9
300.0 376.3 403.1 648.8
plus: Net interest expenses (excluding expense / income from 104.5 122.6 - 207.3 233.1 -
measurement of interest hedges) 14.8 11.1
plus: Expense/less income from measurement of interest hedges 0.6 6.0 - 1.1 9.5 -
90.0 88.4
EBIT - - +21.3 - - +52.1
194.9 247.6 194.7 406.3
Adjustments:
less / plus: Separately disclosed items 0.9 - 1.0 1.5 - 1.7
plus: Expense from purchase price allocation 5.3 6.3 10.5 12.7
Underlying EBIT - - +22.2 - - +53.8
188.7 242.4 182.7 395.3
The TUI Group's operating result adjusted for special items (underlying EBIT) improved by EUR212.6m to EUR-182.7m in Q2 2024.
-- For further details on the separately disclosed items see page 42 in the Notes of this Interim FinancialReport.
Key figures of income statement
EUR million Q2 Q2 Var. H1 H1 Var. %
2024 2023 % 2024 2023
EBITDAR 18.9 - 29.1 n. a. 231.1 28.7 +
706.3
Operating rental expenses - 4.2 - 13.6 + - 8.4 - 13.4 + 37.5
69.2
EBITDA 14.7 - 42.7 n. a. 222.7 15.3 n. a.
Depreciation/amortisation less reversals of depreciation* - - - 2.4 - - + 1.0
209.7 204.8 417.4 421.5
EBIT - - + - - + 52.1
194.9 247.6 21.3 194.7 406.3
Income/Expense from the measurement of interest hedges 0.6 6.0 - 1.1 9.5 - 88.4
90.0
Net interest expense (excluding expense/income from measurement of 104.5 122.6 - 207.3 233.1 - 11.1
interest hedges) 14.8
EBT - - + - - + 37.9
300.0 376.3 20.3 403.1 648.8
* on property, plant and equipment, intangible assets, right of use assets and other assets
Other segment indicators
Underlying EBITDA
EUR million Q2 2024 Q2 2023 Var. % H1 2024 H1 2023 Var. %
adjusted adjusted
Hotels & Resorts 161.7 123.6 + 30.8 297.9 245.3 + 21.4
Cruises 92.8 33.0 + 181.2 149.5 50.9 + 193.6
TUI Musement - 8.8 - 6.5 - 36.4 - 12.5 - 13.9 + 9.9
Holiday Experiences 245.6 150.1 + 63.7 434.9 282.3 + 54.0
Northern Region - 90.4 - 73.6 - 22.7 - 67.5 - 116.9 + 42.2
Central Region - 62.8 - 77.9 + 19.3 - 36.4 - 81.3 + 55.3
Western Region - 37.0 - 29.0 - 27.7 - 49.1 - 38.0 - 29.0
Markets & Airlines - 190.2 - 180.2 - 5.6 - 152.9 - 235.7 + 35.1
All other segments - 39.8 - 12.9 - 209.2 - 57.8 - 31.2 - 85.0
TUI Group 15.6 - 42.9 n. a. 224.2 15.3 n. a.
EBITDA
EUR million Q2 2024 Q2 2023 Var. % H1 2024 H1 2023 Var. %
adjusted adjusted
Hotels & Resorts 161.7 123.8 + 30.6 299.0 244.8 + 22.1
Cruises 92.8 33.0 + 181.2 149.5 50.9 + 193.6
TUI Musement - 8.8 - 6.5 - 36.0 - 12.5 - 12.6 + 0.2
Holiday Experiences 245.6 150.3 + 63.5 436.0 283.2 + 54.0
Northern Region - 91.3 - 71.9 - 27.0 - 66.9 - 116.0 + 42.4
Central Region - 62.9 - 78.2 + 19.6 - 37.5 - 81.5 + 54.0
Western Region - 37.0 - 29.2 - 26.8 - 46.3 - 36.5 - 26.9
Markets & Airlines - 191.2 - 178.9 - 6.9 - 150.5 - 233.5 + 35.5
All other segments - 39.7 - 14.1 - 181.8 - 62.8 - 34.4 - 82.3
TUI Group 14.7 - 42.7 n. a. 222.7 15.3 n. a.
Employees
31 Mar 2024 31 Mar 2023 Var. %
adjusted
Hotels & Resorts 22,014 21,425 + 2.7
Cruises* 77 77 -
TUI Musement 8,295 7,906 + 4.9
Holiday Experiences 30,386 29,408 + 3.3
Northern Region 10,833 10,127 + 7.0
Central Region 7,337 7,086 + 3.5
Western Region 5,089 4,957 + 2.7
Markets & Airlines 23,259 22,170 + 4.9
All other segments 2,725 2,383 + 14.4
Total 56,370 53,961 + 4.5
* Excludes TUI Cruises (JV) employees. Cruises employees are primarily hired by external crew management agencies.
Corporate Governance
Composition of the Boards
In H1 2024 and until 13 May 2024 the composition of the Boards of TUI AG changed as follows:
Executive Board
With effect from the end of 5 January 2024, David Burling resigned from his position as a member of the Executive Board. He was succeeded as of 1 January 2024 by David Schelp as CEO Markets & Airlines.
Supervisory Board
The term of office of the Supervisory Board members Ingrid-Helen Arnold, María Garaña Corces, Coline Lucille McConville and Joan Trían Riu ended at the close of the Annual General Meeting on 13 February 2024.
Based on corresponding proposals of the nomination committee and taking into account the Supervisory Board's aims published in the Declaration on Corporate Governance regarding its composition, the profile of required skills and expertise as well as the diversity concept, the Supervisory Board proposed that these members be re-elected to the Supervisory Board as shareholder representatives. All four election proposals were accepted by the Annual General Meeting held on 13 February 2024 in individual elections.
As a result, there were no changes to the Supervisory Board in the reporting period.
The current, complete composition of the Executive Board and Supervisory Board is published on our website, where it is permanently accessible to the public.
-- www.tuigroup.com/en-en/investors/corporate-governance
Risk and Opportunity Report
Successful management of existing and emerging risks is critical to the long-term success of our business and to the achievement of our strategic objectives. In order to seize market opportunities and leverage the potential for success, risk must be accepted to a reasonable degree. Risk management is therefore an integral component of the Group's Corporate Governance. Full details of our risk governance framework, principal risks and opportunities can be found in the Annual Report. There were no changes in H1 2024 and until 13 May 2024 compared to the risks and opportunities described in detail in our Annual Report 2023.
-- For details of risks and opportunities, see our Annual Report 2023, from page 35 and page 58
Related parties
Apart from the subsidiaries included in the Interim Financial Statements, TUI AG, in carrying out its business activities, maintains direct and indirect relationships with related parties. All transactions with related parties were executed on an arm's length basis.
Detailed information on related parties is provided under section 51 in the Notes to the consolidated financial statements 2023.
In order to strengthen the equity, the shareholders of Pep Toni Hotels S.A. have decided to make additional funds available to the company. In January 2024, TUI paid EUR73.5m into the capital reserve.
On 31 October 2023 the subsidiary Club Hotel CV, S.A. (Robinson Club Cabo Verde) was sold to the associated company TUI Global Hospitality Fund S.C.S. For further details please refer to the section 'Divestments'.
Unaudited condensed consolidated Interim Financial Statements
Unaudited condensed consolidated Income Statement of TUI AG for the period from 1 Oct 2023 to 31 Mar 2024
EUR million Notes Q2 2024 Q2 2023 H1 2024 H1 2023
Revenue (1) 3,650.0 3,152.9 7,952.5 6,903.4
Cost of sales (2) 3,651.3 3,228.5 7,757.7 6,889.8
Gross profit - 1.3 - 75.6 194.8 13.7
Administrative expenses (2) 283.2 250.7 528.6 493.4
Other income (3) 1.2 5.7 8.5 11.7
Other expenses (4) 1.8 - 1.1 10.1 4.7
Impairment (+) / Reversal of impairment (-) of financial assets (18) - 2.7 - 7.2 3.5
Financial income (5) 20.8 19.9 39.5 38.3
Financial expense (5) 126.0 152.4 247.8 284.9
Share of result of investments accounted for using the equity method (6) 90.3 78.4 133.4 74.0
Earnings before income taxes - 300.0 - 376.3 - 403.1 - 648.8
Income taxes (expense (+), income (-)) (7) - 53.0 - 50.0 - 72.6 - 90.8
Group loss - 247.0 - 326.2 - 330.5 - 558.0
Group loss attributable to shareholders of TUI AG - 294.2 - 364.3 - 416.8 - 620.4
Group profit attributable to non-controlling interest (8) 47.2 38.1 86.3 62.4
Earnings per share
EUR Q2 2024 Q2 2023 H1 2024 H1 2023
Basic and diluted loss / earnings per share - 0.58 - 1.26 - 0.82 - 2.15
Unaudited condensed consolidated Statement of Comprehensive Income of TUI AG for the period from 1 Oct 2023 to 31 Mar
2024
EUR million Q2 Q2 H1 H1
2024 2023 2024 2023
Group loss - - - -
247.0 326.2 330.5 558.0
Remeasurements of defined benefit obligations and related fund assets - 8.9 - 5.7 - -
103.8 129.4
Other comprehensive income of investments accounted for using the equity method that 2.1 - 2.1 -
will not be reclassified
Fair value profit / loss on investments in equity instruments designated as at FVTOCI 0.1 22.6 0.1 23.7
Income tax related to items that will not be reclassified (expense (-), income (+)) 1.4 2.0 29.5 32.9
Items that will not be reclassified to profit or loss - 5.2 18.8 - -
72.0 72.9
Foreign exchange differences 9.1 - 2.1 - -
42.6 103.4
Foreign exchange differences outside profit or loss 9.1 - 2.1 - -
42.7 103.4
Reclassification - - 0.1 -
Cash flow hedges 119.6 - - -
39.9 224.3 176.2
Changes in the fair value 129.6 - - -
53.4 218.9 169.7
Reclassification - 13.5 - 5.4 - 6.5
10.0
Other comprehensive income of investments accounted for using the equity method that 7.7 - 5.6 - 5.6 - 6.6
may be reclassified
Changes in the measurement outside profit or loss 7.7 - 5.6 - 5.6 - 6.6
Income tax related to items that may be reclassified (expense (-), income (+)) - 9.6 51.1 44.3
29.8
Items that may be reclassified to profit or loss 106.6 - - -
38.0 221.4 241.8
Other comprehensive income 101.3 - - -
19.1 293.5 314.7
Total comprehensive income - - - -
145.7 345.4 624.0 872.7
attributable to shareholders of TUI AG - - - -
209.6 396.6 717.1 927.4
attributable to non-controlling interest 64.0 51.2 93.2 54.7
Unaudited condensed consolidated Statement of Financial Position of TUI AG as at 31 Mar 2024
EUR million Notes 31 Mar 2024 30 Sep 2023
Assets
Goodwill (9) 2,960.4 2,949.2
Other intangible assets 557.0 538.0
Property, plant and equipment (10) 3,689.1 3,480.3
Right-of-use assets (11) 2,584.5 2,763.4
Investments in joint ventures and associates 1,347.9 1,198.2
Trade and other receivables (12), (18) 79.2 74.7
Derivative financial instruments (18) 11.5 10.3
Other financial assets (18) 10.9 10.8
Touristic payments on account 158.2 152.5
Other non-financial assets 81.5 100.7
Income tax assets 17.2 17.2
Deferred tax assets 402.4 310.6
Non-current assets 11,899.9 11,605.9
Inventories 63.4 62.1
Trade and other receivables (12), (18) 1,010.8 1,090.4
Derivative financial instruments (18) 102.3 258.2
Other financial assets (18) 53.2 48.6
Touristic payments on account 1,211.3 787.4
Other non-financial assets 178.0 129.9
Income tax assets 61.0 41.0
Cash and cash equivalents (18) 1,648.2 2,060.3
Assets held for sale (13) 0.1 68.6
Current assets 4,328.2 4,546.5
Total assets 16,228.1 16,152.4
Unaudited condensed consolidated Statement of Financial Position of TUI AG as at 31 Mar 2024
EUR million Notes 31 Mar 2024 30 Sep 2023
Equity and liabilities
Subscribed capital 507.4 507.4
Capital reserves 9,090.1 9,090.1
Revenue reserves - 9,191.8 - 8,474.6
Equity before non-controlling interest 405.7 1,122.9
Non-controlling interest 842.5 824.3
Equity (17) 1,248.2 1,947.2
Pension provisions and similar obligations (14) 677.9 637.1
Other provisions 835.4 848.5
Non-current provisions 1,513.2 1,485.7
Financial liabilities (15), (18) 1,779.2 1,198.5
Lease liabilities (16) 2,054.3 2,216.9
Derivative financial instruments (18) 5.8 1.7
Other financial liabilities (18) 42.3 2.6
Other non-financial liabilities 232.4 252.9
Income tax liabilities 13.4 11.0
Deferred tax liabilities 63.0 159.0
Non-current liabilities 4,190.6 3,842.6
Non-current provisions and liabilities 5,703.8 5,328.3
Pension provisions and similar obligations (14) 28.6 33.3
Other provisions 334.7 333.4
Current provisions 363.3 366.7
Financial liabilities (15), (18) 294.9 98.5
Lease liabilities (16) 663.7 701.2
Trade payables (18) 2,169.7 3,373.7
Derivative financial instruments (18) 125.0 35.3
Other financial liabilities (18) 120.5 121.8
Touristic advance payments received 4,992.6 3,530.2
Other non-financial liabilities 469.2 534.1
Income tax liabilities 77.0 113.8
Current liabilities 8,912.7 8,508.6
Liabilities related to assets held for sale - 1.6
Current provisions and liabilities 9,276.0 8,876.9
Total equity, liabilities and provisions 16,228.1 16,152.4
Unaudited condensed consolidated Statement of Changes in Equity of TUI AG for the period from 1 Oct 2023 to 31 Mar 2024
Subscribed Capital Revenue Silent Equity before Non-controlling
EUR million capital reserves reserves participation non-controlling interest Total
interest
Balance as at 1 Oct 1,785.2 6,085.9 - 420.0 - 141.6 787.3 645.7
2022 8,432.7
Dividends - - - - - - -
Coupon on silent - - - 16.8 - - 16.8 - - 16.8
participation
Capital reduction - 1,606.7 1,606.7 - - - - -
WSF repurchase - - 34.5 - 222.8 - 420.0 - 677.3 - - 677.3
agreement
Group loss for the - - - 620.4 - - 620.4 62.4 - 558.0
year
Foreign exchange - - - 96.0 - - 96.0 - 7.4 - 103.4
differences
Financial assets at - - 23.7 - 23.7 - 23.7
FVTOCI
Cash flow hedges - - - 176.2 - - 176.2 - - 176.2
Remeasurements of
defined benefit - - - 129.1 - - 129.1 - 0.3 - 129.4
obligations and
related fund assets
Other comprehensive
income of investments - - - 6.6 - - 6.6 - - 6.6
accounted for using
the equity method
Taxes attributable to
other comprehensive - - 77.2 - 77.2 - 77.2
income
Other comprehensive - - - 307.0 - - 307.0 - 7.7 - 314.7
income
Total comprehensive - - - 927.4 - - 927.4 54.7 - 872.7
income
Balance as at 31 Mar 178.5 7,658.0 - - - 1,763.1 842.0 - 921.1
2023 9,599.7
Balance as at 1 Oct 507.4 9,090.1 - - 1,122.8 824.4 1,947.2
2023 8,474.7
Dividends - - - - - - 75.0 - 75.0
Group loss for the - - - 416.8 - - 416.8 86.3 - 330.5
year
Foreign exchange - - - 49.4 - - 49.4 6.8 - 42.6
differences
Cash flow hedges - - - 224.3 - - 224.3 - - 224.3
Remeasurements of
defined benefit - - - 103.8 - - 103.8 - - 103.8
obligations and
related fund assets
Other comprehensive
income of investments - - - 3.5 - - 3.5 - - 3.5
accounted for using
the equity method
Taxes attributable to
other comprehensive - - 80.6 - 80.6 - 80.6
income
Other comprehensive - - - 300.3 - - 300.3 6.8 - 293.5
income
Total comprehensive - - - 717.1 - - 717.1 93.1 - 624.0
income
Balance as at 31 Mar 507.4 9,090.1 - - 405.7 842.5 1,248.2
2024 9,191.8
Unaudited condensed consolidated Cash Flow Statement of TUI AG for the period from 1 Oct 2023 to 31 Mar 2024
EUR million Notes H1 2024 H1 2023
Group loss - 330.5 - 558.0
Depreciation, amortisation and impairment (+) / write-backs (-) 417.5 421.5
Other non-cash expenses (+) / income (-) - 133.9 - 62.3
Interest expenses 243.5 277.0
Dividends from joint ventures and associates 19.4 2.8
Profit (-) / loss (+) from disposals of non-current assets 2.9 - 6.6
Increase (-) / decrease (+) in inventories - 1.2 - 7.7
Increase (-) / decrease (+) in receivables and other assets - 169.9 - 47.9
Increase (+) / decrease (-) in provisions - 101.2 - 231.0
Increase (+) / decrease (-) in liabilities (excl. financial liabilities) - 215.1 - 72.2
Cash inflow / cash outflow from operating activities (21) - 268.5 - 284.4
Payments received from disposals of property, plant and equipment and intangible assets 46.0 74.1
Payments received / made from disposals of consolidated companies 44.1 - 0.7
(less disposals of cash and cash equivalents due to divestments)
Payments received / made from disposals of other non-current assets 58.6 75.8
Payments made for investments in property, plant and equipment and intangible assets - 390.3 - 364.8
Payments received from investments in consolidated companies 2.9 -
(less cash and cash equivalents received due to acquisitions)
Payments made for investments in other non-current assets - 81.7 - 3.8
Cash inflow / cash outflow from investing activities (21) - 320.4 - 219.4
Dividend payments
Coupon on silent participation (dividends) - - 16.8
subsidiaries to non-controlling interest - 76.0 -
Proceeds from the raising of financial liabilities 811.3 1,054.9
Transaction costs related to loans and borrowings - 8.3 - 0.9
Payments made for redemption of loans and financial liabilities - 36.9 - 91.7
Payments made for principal of lease liabilities - 319.3 - 362.1
Interest paid - 197.1 - 227.8
Cash inflow / cash outflow from financing activities (21) 173.7 355.6
Net change in cash and cash equivalents - 415.2 - 148.2
Development of cash and cash equivalents (21)
Cash and cash equivalents at beginning of period 2,060.5 1,736.9
Change in cash and cash equivalents due to exchange rate fluctuations 2.8 - 12.8
Net change in cash and cash equivalents - 415.2 - 148.2
Cash and cash equivalents at end of period 1,648.2 1,575.9
Notes
General
The TUI Group and its major subsidiaries and shareholdings operate in tourism. TUI AG, based in Karl-Wiechert-Allee 23, 30625 Hanover, Germany, is the TUI Group's parent company and a listed corporation under German law. The Company is registered in the commercial registers of the district courts of Berlin-Charlottenburg (HRB 321) and Hanover (HRB 6580), Germany. The shares in TUI AG are traded on the London Stock Exchange and the Hanover and Frankfurt Stock Exchanges. In this document, the term "TUI Group" represents the consolidated group of TUI AG and its direct and indirect investments. Additionally, the unaudited condensed consolidated interim financial statements of TUI AG are referred to as "Interim Financial Statements", the unaudited condensed consolidated income statement of TUI AG is referred to as "income statement", the unaudited condensed consolidated statement of financial position of TUI AG is referred to as "statement of financial position", the unaudited condensed consolidated statement of comprehensive income of TUI AG is referred to as "statement of comprehensive income" and the unaudited condensed consolidated statement of changes in equity of TUI AG is referred to as "statement of changes in equity".
The Interim Financial Statements cover the period from 1 October 2023 to 31 March 2024. The Interim Financial Statements are prepared in euros. Unless stated otherwise, all amounts are stated in million euros (EURm). TUI Group's results generally also reflect the significant seasonal swing in tourism between the winter and summer travel months.
The Interim Financial Statements were approved for publication by the Executive Board of TUI AG on 13 May 2024.
Accounting principles
Declaration of compliance
The consolidated interim financial report for the period ended 31 March 2024 comprise the Interim Financial Statements and the Interim Management Report in accordance with section 115 of the German Securities Trading Act (WpHG).
The Interim Financial Statements were prepared in conformity with the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB) and the relevant interpretations of the IFRS Interpretation Committee (IFRS IC) for interim financial reporting applicable in the European Union.
In accordance with IAS 34, the Interim Financial Statements are published in a condensed form compared with the consolidated annual financial statements and should therefore be read in combination with TUI Group's consolidated financial statements for financial year 2023. The Interim Financial Statements were reviewed by the Group's auditor.
Going concern reporting in accordance with the UK Corporate Governance Code
The TUI Group covers its day-to-day working capital requirements through cash on hand, bank balances and borrowings from banks. TUI Group's net debt (financial debt plus lease liabilities less cash and cash equivalents and less short-term interest-bearing cash investments) as of 31 March 2024 was EUR3.1bn (as at 30 September 2023 EUR2.1bn).
Net debt EUR million 31 Mar 2024 30 Sep 2023 Var. % Financial debt 2,074.1 1,297.0 + 59.9 Lease liabilities 2,718.0 2,918.1 - 6.9 Cash and cash equivalents 1,648.2 2,060.3 - 20.0 Short-term interest-bearing investments 53.2 48.6 + 9.5 Net debt 3,090.7 2,106.2 + 46.7
As at 31 March 2024, TUI Group's revolving credit facilities totalled EUR2.2bn, they comprised the following
-- EUR1.64bn credit line from 19 private banks (incl. EUR190m guarantee line)
-- EUR0.55bn KfW credit line.
The syndicated credit line with the 19 banks (EUR1.64bn), including the credit line with KfW (EUR0.55bn), together referred to as the "RCF", will mature in July 2026. The RCF of TUI AG is subject to compliance with certain financial targets (covenants) for debt coverage and interest coverage, the review of which is carried out on the basis of the last four reported quarters at the end of the financial year or the half-year of a financial year. As at 31 March 2024, the covenants were met.
On 13 March 2024, TUI AG issued sustainability-linked senior notes in an aggregate principal amount of EUR500m with a tenor of five years. The notes have an annual coupon of 5.875% and have been issued at 98.93%. The coupon of the notes is linked to the achievement of a specific sustainability target until the end of the financial year ending on September 30, 2026. Failure to achieve the sustainability target will increase the annual coupon of the notes by 25 basis points for the remaining term. In connection with the issue of the senior notes, the KfW credit line was reduced from EUR1.05bn to EUR0.55bn.
The EUR1.64bn credit line from private banks was undrawn in cash at 31 March 2024, while the volume of guarantees issued under the guarantee line was EUR134.3m. The KfW credit line, which amounts to EUR0.55bn, had not been utilised as at 31 March 2024. It is still not expected to be utilised and merely serves as a buffer. The aim is to return this credit line quickly.
Of the bilateral credit lines of EUR50m each agreed with four banks in December 2023, one line expired as planned in February 2024. The remaining three credit lines were utilised in the amount of EUR150m as at 31 March 2024.
In the view of the Executive Board, the TUI Group currently has and will continue to have sufficient funds, resulting both from borrowings and from operating cash flows, to meet its payment obligations and to continue as a going concern in the foreseeable future. The Executive Board bases this assessment on the forecasts for future operating cash flows, which will show cash surpluses from the second half of the year in particular, in line with TUI's seasonal business. The credit facilities described above are also available. Therefore, as at 31 March 2024, the Board does not identify any material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern.
The Board does not foresee risks that may jeopardise the Group's ability to continue as a going concern and does not believe that compliance with the financial covenants will be at risk as at 30 September 2024.
In accordance with Regulation 30 of the UK Corporate Governance Code, the Board confirms that, in its opinion, it is appropriate to prepare the consolidated interim financial statements on a going concern basis.
Accounting and measurement methods
The preparation of the Interim Financial Statements requires management to make estimates and judgements that affect the reported values of assets, liabilities and contingent liabilities at the balance sheet date and the reported values of revenues and expenses during the reporting period.
The accounting and measurement methods adopted in the preparation of the Interim Financial Statements as at 31 March 2024 are materially consistent with those followed in preparing the annual consolidated financial statements for the financial year ended 30 September 2023, except for the initial application of new or amended standards, as outlined below.
The income taxes were recorded based on the best estimate of the weighted average tax rate that is expected for the whole financial year.
Newly applied standards
Since the beginning of financial year 2024, TUI Group has initially applied the following standards, amended by the IASB and endorsed by the EU, on a mandatory basis:
Newly applied standards in financial year 2024
Applicable Impact on
Standard from Amendments financial
statements
IFRS 17 IFRS 17 establishes the principles for the accounting for insurance No
Insurance 1 Jan 2023 contracts and replaces IFRS 4. The scope of IFRS 17 includes material
Contracts insurance contracts, reinsurance contracts and investment contracts impacts.
with discretionary profit participation.
Amendments to
IFRS 17
Initial The amendment addresses implementation challenges in the presentation No
Application of 1 Jan 2023 of comparative information that were identified after IFRS 17 was impacts.
IFRS 17 and IFRS 9 published.
- Comparative
Information
Amendments to The amendments to IAS 1 and IFRS Practice Statement 2 are to help
IAS 1 preparers in deciding which accounting and measurement methods to No
Disclosure of 1 Jan 2023 disclose in their financial statements. The amendments require material
Accounting entities to disclose their material accounting and measurement policy impacts.
Policies information instead of their significant accounting and measurement
policies.
Amendments to The amendments to IAS 8 are to help entities to distinguish between
IAS 8 accounting policies and accounting estimates. The definition of a No
Definition of 1 Jan 2023 change in accounting estimates is replaced with a new definition of material
Accounting accounting estimates. It is clarified that a change in an accounting impacts.
Estimates estimate that results from new information or new developments is not
the correction of an error.
The amendments to IAS 12 introduce a temporary recognition exception
for the accounting of deferred taxes as part of the implementation of
Amendments to the global minimum taxation (so-called 'Pillar Two' regulations of
IAS 12 Immediately the OECD). Following the endorsement of the amendments by the No
International Tax or, European Union TUI had already applied for that exception in the material
Reform - Pillar respectively, financial year 2023. In financial year 2024 TUI adopts for the first impacts.
Two Model Rules 1 Jan 2023 time the new disclosure requirements, which are intended to help
users to better understand the impacts that the reform will have at
the company, in particular before the country-specific laws to
implement the minimum taxation become effective.
Amendments to The amendments clarify that deferred tax assets and liabilities have
IAS 12 to be formed when a transaction gives rise to equal amounts of
Deferred tax deductible and taxable temporary differences at the same time. The No
related to Assets 1 Jan 2023 initial recognition exemption, according to which deferred tax assets material
and Liabilities or liabilities are not recognised on initial recognition of an asset impacts.
arising from a or a liability, does not apply to transactions of this type.
Single Transaction
Group of consolidated companies
The Interim Financial Statements include all material subsidiaries over which TUI AG has control. Control requires TUI AG to have decision-making power over the relevant activities, be exposed to variable returns or have entitlements regarding the returns, and can affect the level of those variable returns through its decision-making power.
The Interim Financial Statements as of 31 March 2024 comprised a total of 262 subsidiaries of TUI AG.
Development of the group of consolidated companies*
and the Group companies measured at equity
Consolidated subsidiaries Associates Joint ventures
Number at 30 Sep 2023 266 20 27
Additions 2 - 1
Incorporation 2 - -
Acquisition - - 1
Disposals 7 2 1
Liquidation 3 - -
Sale 1 2 1
Merger 3 - -
Change in ownership stake** 1 - - 1
Number at 31 Mar 2024 262 18 26
* excl. TUI AG
** Addition 1 / disposal -1
Acquisitions - Divestments
Acquisitions in the period under review
A 50 % stake in TRAVELStar GmbH, a travel agency company based in Hanover, was acquired by way of a purchase agreement dated 29 August 2023 and effective as of 19 October 2023. The consideration determined in the framework of a purchase price allocation totals EUR2.3m and relates in full to purchase price payments offset from the sale of the stake in Raiffeisen-Tours RT-Reisen GmbH. With the acquisition of the shares in TRAVELStar GmbH, the 50 % stake previously held by TUI Group was increased to 100 %. The interest already held at the date of acquisition, carried as a joint venture accounted for using the equity method, was remeasured to fair value through profit or loss in the framework of the transitional consolidation (EUR2.3m). The transaction resulted in a gain of EUR0.4m, carried in Other income. In the period under review, the impact on revenues and earnings was insignificant.
Condensed statement of financial position of TRAVELStar GmbH as at the date of acquisition EUR million Assets 7.0 Other intangible assets 0.7 Inventories 0.1 Trade and other receivables 1.2 Other current assets 2.1 Cash and cash equivalents 2.9 Equity and liabilities 7.0 Current provisions 0.2 Deferred tax liabilities 0.2 Other liabilities 2.1 Equity 4.5
No companies were acquired after the balance sheet date.
Divestments
Four companies were divested in the first six months of financial year 2024.
The shares in the joint venture WOT Hotels Adriatic Asset Company d.o.o., a company accounted for using the equity method, were sold by way of an agreement dated 30 August 2023 and effective as of 20 October 2023. The purchase price totals EUR12.0m and corresponds to the carrying amount of the equity method investment at the divestment date. The purchase price was paid on 10 November 2023. The loss on disposal from this transaction amounts to EUR0.1m and is carried in Other expenses.
The shares in the associated company Raiffeisen-Tours RT-Reisen GmbH, accounted for using the equity method, were sold by way of a purchase agreement dated 29 August 2023 and effective as of 19 October 2023. The consideration determined in the framework of a purchase price allocation amounts to EUR3.1m and corresponds to the carrying amount of the equity method investment at the divestment date. The payment was made on 30 October 2023. The divestment of the company resulted in the disposal of goodwill of the Central Region cash-generating unit totalling EUR1.2m. A loss on disposal of EUR1.2m was realised from this transaction and is carried in Other expenses.
On 31 March 2023, an agreement was signed with TUI Global Hospitality Fund S.C.S. to sell Club Hotel CV, S.A. (Robinson Club Cabo Verde), consolidated in the Hotels & Resorts segment. The divestment was completed on 31 October 2023. The consideration amounts to EUR45.6m. Of this total, EUR44.8m is attributable to the settlement of intra-Group loans. The payment was made on 31 October 2023. The divestment of the company resulted in the disposal of goodwill totalling EUR2.5m of the Robinson cash-generating unit. A gain on disposal of EUR1.0m was generated from this transaction and is carried in Other income.
Condensed balance sheet of 'Robinson Club Cabo Verde' as at 31 Oct 2023
EUR million
Assets
Property, plant and equipment and intangible assets 41.0
Trade receivables 0.8
Other current assets 0.4
Cash and cash equivalents 1.5
43.7
EUR million
Provisions and liabilities
Intra-group financial liabilities 44.8
Trade payables 1.1
Touristic advance payments received 0.2
Other current liabilities 0.3
46.4
No companies were divested after the balance sheet date.
Notes to the unaudited condensed consolidated Income Statement
In the first six months of financial year 2024, TUI Group's revenue was strongly higher than in H1 2023, due to a year-on-year increase in pax numbers and higher average prices, in particular in Markets & Airlines. TUI Group's results generally also reflect the significant seasonal swing in tourism between the winter and summer travel months. 1. Revenue
In the first six months of the financial year 2024, consolidated revenue increased by EUR1.0bn year-on-year to EUR8.0bn.
External revenue allocated by destinations for the period from 1 Oct 2023 to 31 Mar 2024
Spain Caribbean, North Rest of H1 2024
(incl. Other Mexico, Africa Africa, Other Revenues from H1 2024
EUR million Canary European USA & & Ind. countries contracts Other Total
Islands) destinations Canada Turkey Ocean, with
Asia customers
Hotels & 183.4 31.4 154.3 21.4 108.5 - 499.0 - 499.0
Resorts
Cruises 95.1 21.6 211.5 - 55.5 - 383.7 - 383.8
TUI Musement 42.3 90.0 67.1 19.5 90.1 35.4 344.4 - 344.4
Holiday 320.8 143.0 432.9 40.9 254.1 35.4 1,227.1 - 1,227.2
experiences
Northern 885.7 506.2 591.9 289.8 496.7 14.0 2,784.3 5.7 2,790.0
Region
Central 853.5 456.4 207.5 630.1 640.2 3.8 2,791.5 - 2,791.5
Region
Western 364.3 120.2 277.5 165.3 199.3 13.5 1,140.1 - 1,140.0
Region
Markets & 2,103.5 1,082.8 1,076.9 1,085.2 1,336.2 31.3 6,715.9 5.7 6,721.6
Airlines
All other 0.4 3.3 - - - - 3.7 - 3.7
segments
Total 2,424.7 1,229.1 1,509.8 1,126.1 1,590.3 66.7 7,946.7 5.7 7,952.5
External revenue allocated by destinations for the period from 1 Oct 2022 to 31 Mar 2023
Spain Caribbean, North Rest of H1 2023
(incl. Other Mexico, Africa Africa, Other Revenues from H1 2023
EUR million Canary European USA & & Ind. countries contracts Other Total
Islands) destinations Canada Turkey Ocean, with
Asia customers
Hotels & 153.6 25.1 138.7 19.2 92.6 - 429.2 - 429.2
Resorts
Cruises 97.2 72.0 87.8 - - - 257.1 - 257.1
TUI Musement 48.3 68.1 66.1 17.0 64.5 26.0 290.0 - 290.0
Holiday 299.1 165.2 292.6 36.2 157.1 26.0 976.3 - 976.4
experiences
Northern 786.9 439.1 627.8 247.3 414.8 13.9 2,529.8 4.8 2,534.6
Region
Central 702.8 397.1 204.7 496.0 570.2 3.6 2,374.4 1.5 2,375.9
Region
Western 309.0 115.1 267.0 149.7 157.1 11.2 1,009.1 3.5 1,012.6
Region
Markets & 1,798.7 951.3 1,099.5 893.0 1,142.1 28.7 5,913.3 9.8 5,923.2
Airlines
All other 0.2 3.2 0.2 0.2 - - 3.9 - 3.9
segments
Total 2,098.1 1,119.8 1,392.4 929.4 1,299.2 54.7 6,893.6 9.8 6,903.4
2. Cost of sales and administrative expenses
Cost of sales relates to the expenses we incur in the provision of tourism services. In addition to expenses for per-sonnel, depreciation and amortisation, and rental and leasing expenses directly related to revenue-generating activi-ties, it includes all costs we incur in connection with the procurement and delivery of airline services, hotel accom-modation, cruises and distribution costs.
Due to the increased business volume, the cost of sales increased by 12.6% to EUR7.8bn in H1 2024.
Administrative expenses comprise all expenses incurred in connection with the performance of administrative functions and break down as follows:
Administrative expenses EUR million H1 2024 H1 2023 Staff costs 337.0 297.0 Rental and leasing expenses 6.3 8.3 Depreciation, amortisation and impairment 32.3 34.1 Others 153.0 153.9 Total 528.6 493.4
The cost of sales and administrative expenses include the following expenses for staff and depreciation/ amortisation:
Staff costs
EUR million H1 2024 H1 2023
Wages and salaries 1,010.2 933.6
Social security contributions, pension costs and benefits 212.8 185.5
Total 1,223.0 1,119.1
Depreciation/amortisation/impairment
EUR million H1 H1
2024 2023
Depreciation and amortisation of other intangible assets, property, plant and equipment and 417.4 417.6
right-of-use assets
Impairment of other intangible assets, property, plant and equipment and right-of-use assets 0.3 4.9
Total 417.7 422.5
The impairments of EUR0.3m were presented within cost of sales (H1 2023 EUR4.9m). 3. Other income
In the first six months of financial year 2024, Other income mainly shows gains from the disposal of aircraft assets. In the previous year, this item had primarily comprised a gain from the disposal of aircraft assets and a gain from the disposal of the Jet Set House (Crawley) building. 4. Other expenses
As in the previous year, Other expenses in the period under review mainly relate to losses from the disposal of aircraft assets. 5. Financial income and financial expenses
The improvement in the net financial result from EUR-246.6 m in the first six months of the previous year to EUR-208.3m in the current financial year is mainly the result of declining interest expense. 6. Share of result of investments accounted for using the equity method
Share of result of investments accounted for using the equity method EUR million H1 2024 H1 2023 Hotels & Resorts 52.3 46.0 Cruises 72.3 26.0 TUI Musement 5.9 5.1 Holiday Experiences 130.5 77.1 Northern Region 1.2 - 3.4 Central Region 1.5 - 0.2 Western Region - 0.3 Markets & Airlines 2.7 - 3.3 All other segments 0.2 0.2 Total 133.4 74.0
The previous year's results for the Northern Region still include the negative result of the strategic tour operator venture in Canada that was sold in May 2023. 7. Income taxes
The tax income arising in the first half year of 2024 is mainly driven by the seasonality of the tourism business. 8. Group profit attributable to non-controlling interest
The majority of TUI Group's results attributable to non-controlling interests relates to a gain generated by RIUSA II Group amounting to EUR84.2m (H1 2023 EUR61.3m profit).
Notes to the unaudited condensed consolidated Statement of Financial Position 9. Goodwill
Goodwill increased by EUR11.2m to EUR2,960.4m mainly due to foreign exchange translation. 10. Property, plant and equipment
Compared to 30 September 2023 property, plant and equipment increased by EUR208.8m to EUR3,689.1m. Additions of EUR313.7m included acquisitions of EUR152.0m in the Hotels & Resorts segment. The acquisition of land in Mexico and the construction of two new hotels on Mauritius led to additions in the Riu Group totalling EUR130.9m. In addition, advance payments of EUR92.0m were made for the future delivery of aircraft. Additions to assets under construction of EUR25.3m related to carrying out maintenance work on cruise ships. Further additions of EUR17.9m related to the purchase of aircraft spare parts. Reclassifications from right-of-use assets led to an increase in property, plant and equipment of EUR62.1, of which EUR61.6m were mainly due to the reclassification of aircrafts resulting from the exercise of existing purchase options.
On the other hand, depreciation and amortisation of EUR130.2m led to a decrease in property, plant and equipment. Disposals of EUR37.3m led to a further reduction of property, plant and equipment and are mainly caused by the disposal of advance payments for future delivery of aircraft (EUR25.8m). Due to sale and leaseback transactions, the disposal of these advance payments led to the addition of right-of-use assets. 11. Right-of-use assets
Compared to 30 September 2023 right-of-use assets decreased by EUR178.9m to EUR2,584.5m. Depreciation charged of EUR227.5m led to a decrease in right-of-use assets. Furthermore, the foreign exchange translation led to a decrease in right-of-use assets of EUR29.2m. Reclassifications into property, plant and equipment led to a further reduction of right-of-use assets by EUR58.0m. In this context, we refer to the section 'Property, plant and equipment'.
On the other hand, additions increased the right-of-use assets by EUR92.4m, of which EUR53.1m were attributable to the delivery of two aircraft and one aircraft engine due to sale and leaseback transactions. Further additions included with EUR16.4m newly leased vehicles and with EUR9.9m new lease contracts for travel agencies. Furthermore, modifications and reassessments of existing lease contracts increased the right-of-use assets by EUR43.5m. The increase is mainly due to contract extensions related to leased aircraft (EUR15.6m), hotel leases (EUR12.9) and leased travel agencies (EUR8.2m).
The corresponding liabilities are explained in the section 'Lease Liabilities'. 12. Trade and other receivables
The decrease in current trade and other receivables mainly results from reduced security deposits issued to secure advance payment from customers. 13. Assets held for sale
As at 31 March 2024, assets in the amount of EUR0.1m were classified as held for sale. In the course of the period under review, there were no reclassifications to assets held for sale.
Assets held for sale EUR million 31 Mar 2024 30 Sep 2023 Disposal group Robinson Club Cabo Verde - 44.4 Investments accounted for using the equity method - 15.1 Other assets 0.1 9.1 Total 0.1 68.6
In addition, in the previous year there were liabilities (EUR1.6m) in relation to assets held for sale of the disposal group Robinson Club Cabo Verde in the Hotels & Resorts segment. The sale of this disposal group and the sales of the investments accounted for using the equity method took place in October 2023. In this context, please refer to the section 'Divestments'. 14. Pension provisions and similar obligations
The pension provisions for unfunded plans and underfunded plans increased by EUR36.1m from EUR670.4m to EUR706.5m compared to the end of the previous financial year.
The overfunding of funded pension plans reported in other non-financial assets decreased by EUR22.4m from EUR98.5m as at 30 September 2023 to EUR76.1m as at 31 March 2024.
This development is attributable in particular to remeasurement effects due to a significantly lower discount rate in the UK and Germany, compared to 30 September 2023. In both regions, the defined benefit obligations increased accordingly. In the case of the funded pension plans in the UK, however, this increase was largely offset by increased asset values due to the chosen investment strategy. 15. Financial liabilities
Non-current financial liabilities increased by EUR580.7m from EUR1,198.5m at 30 September 2023 to EUR1,779.2m at 31 March 2024. This increase primarily results from an increase in liabilities to banks and from the issuance of a sustainability-linked bond in March 2024.
The main financing instrument is a syndicated revolving credit facility (RCF) between TUI AG and the existing banking syndicate which from 2020, included the KfW. The volume of this revolving credit facility, including a guarantee credit line of EUR190m, totals EUR2.2bn at 31 March 2024. At 31 March 2024, the revolving credit lines, excluding the guarantee credit line, were not drawn (September 30, 2023 EUR0.0m.).
Of the bilateral credit lines of EUR50m each agreed with four banks in December 2023, one of these credit lines expired in accordance with the contract in February 2024. The three existing bilateral credit lines were drawn by EUR150m at 31 March 2024 and are reported under current financial liabilities.
Current financial liabilities increased by EUR196.4m to EUR294.9m at 31 March 2024 compared to EUR98.5m at 30 September 2023.
For further details on the terms, conditions and the amendments to the credit lines and the sustainability-related bond please refer to the section 'Going Concern Reporting under the UK Corporate Governance Code'. 16. Lease liabilities
Compared to 30 September 2023, the lease liabilities decreased by EUR200.1m to EUR2,718.0m. Payments of EUR402.5m led to a decline in lease liabilities. Furthermore, lease liabilities decreased by EUR33.4m due to foreign exchange translation. On the other hand, additions from new lease contracts led to an increase in lease liabilities of EUR98.0m, of which EUR49.2m relate to the addition of two new aircraft and EUR9.6m to the addition of an aircraft engine. Further additions included EUR16.3m of vehicle leases and EUR9.9m of travel agencies. In addition, the lease liabilities increased by EUR87.3m due to interest charges. Furthermore, changes and remeasurements of existing leases resulted in an increase in lease liabilities of EUR50.6m, of which EUR23.2m mainly relate to lease extensions of hotel leases, EUR13.0m to aircraft lease extensions and EUR8.1m to leased travel agencies. 17. Changes in equity
Overall, equity decreased by EUR699.0m when compared to 30 September 2023, from EUR1,947.2m to EUR1,248.2m.
The Group loss in the first six months of the financial year 2024 is mainly caused by the seasonality of the tourism business.
The proportion of gains and losses from hedging instruments for effective hedging of future cash flows includes an amount of EUR-224.3m (pre-tax) carried under other comprehensive income in equity outside profit and loss (previous year EUR-176.2m).
The revaluation of pension obligations is also recognised under other comprehensive income directly in equity without effect on profit and loss. 18. Financial instruments
Carrying amounts and fair values according to classes and measurement categories according to IFRS 9 as at 31 Mar 2024
Category according to IFRS 9
At Fair value with no Fair value with no Fair value Fair value
EUR million Carrying amortised effect on profit and effect on profit and through of financial
amount cost loss without recycling loss with recycling profit and instruments
loss
Assets
Trade receivables
and other
receivables
thereof
instruments 1,087.6 1,087.6 - - - 1,082.5
within the scope
of IFRS 9
thereof
instruments 2.4 - - - - 2.7
within the scope
of IFRS 16
Derivative
financial
instruments
Hedging 100.7 - - 100.7 - 100.7
transactions
Other derivative
financial 13.1 - - - 13.1 13.1
instruments
Other financial 64.1 53.2 10.0 - 0.9 62.7
assets
Cash and cash 1,648.2 1,460.2 - - 188.0 1,648.2
equivalents
Liabilities
Financial 2,074.1 2,074.1 - - - 2,029.8
liabilities
Trade payables 2,169.7 2,169.7 - - - 2,169.7
Derivative
financial
instruments
Hedging 120.7 - - 120.7 - 120.7
transactions
Other derivative
financial 10.1 - - - 10.1 10.1
instruments
Other financial 162.8 162.8 - - - 162.8
liabilities
Carrying amounts and fair values according to classes and measurement categories according to IFRS 9 as at 30 Sep 2023
Category according to IFRS 9
At Fair value with no Fair value with no Fair value Fair value
EUR million Carrying amortised effect on profit and effect on profit and through of financial
amount cost loss without recycling loss with recycling profit and instruments
loss
Assets
Trade receivables
and other
receivables
thereof
instruments 1,161.0 1,122.6 - - 38.9 1,153.0
within the scope
of IFRS 9
thereof
instruments 4.1 - - - - 4.4
within the scope
of IFRS 16
Derivative
financial
instruments
Hedging 236.4 - - 236.4 - 236.4
transactions
Other derivative
financial 32.1 - - - 32.1 32.1
instruments
Other financial 59.4 48.6 9.9 - 0.9 57.3
assets
Cash and cash 2,060.3 1,588.3 - - 472.2 2,060.5
equivalents
Liabilities
Financial 1,297.0 1,297.0 - - - 1,120.1
liabilities
Trade payables 3,373.7 3,374.7 - - - 3,374.7
Derivative
financial
instruments
Hedging 25.9 - - 25.9 - 25.9
transactions
Other derivative
financial 11.1 - - - 11.1 11.1
instruments
Other financial 124.4 124.4 - - - 124.4
liabilities
The amounts shown in the column 'carrying amount' (as shown in the balance sheet) in the tables above can differ from those in the other columns of a particular row since the latter include all financial instruments. That is the latter columns include financial instruments which are part of disposal groups according to IFRS 5. In the balance sheet, financial instruments, which are part of a disposal group, are shown as separate items. If such financial instruments are included, further details on these financial instruments are explained in the section 'Assets held for sale'.
The instruments measured at fair value through other comprehensive income (OCI) within the other financial assets class are investments in companies based on medium to long-term strategic objectives. Recording all short-term fluctuations in the fair value in the income statement would not be in line with TUI Group's strategy; these equity instruments were, therefore, designated as at fair value through OCI.
In the period under review, the fair values of current other receivables, current other financial assets and current liabilities to banks were determined in line with the past financial year, taking account of yield curves and the respective credit risk premium (credit spread).
The fair values of non-current trade receivables and other receivables correspond to the present values of the cash flows associated with the assets, taking account of current interest parameters which reflect market and counterparty-related changes in terms and expectations. In the case of cash and cash equivalents, current trade receivables, current trade payables and other financial liabilities the carrying amount approximates the fair value due to the short remaining term.
For fuel price hedges, the retrospective effectiveness is determined by regression analysis. To calculate the ineffective portions, the Dollar-Offset Method is applied. For foreign currency hedges, the retrospective effectiveness as well as the ineffective portions are determined by the Dollar-Offset Method. The designation of the fuel price hedges as well as foreign currency hedges is evaluated on a seasonal basis. This approach reflects the business model with both a summer and winter season within a financial year, and adheres to the hedging approach of TUI's risk management strategy.
Aggregation according to measurement categories under IFRS 9 as at 31 Mar 2024
EUR million Carrying amount of financial instruments Fair Value
Total
Financial assets
at amortised cost 2,601.0 2,594.5
at fair value - recognised directly in equity without recycling 10.0 10.0
at fair value - through profit and loss 202.0 202.0
Financial liabilities
at amortised cost 4,406.6 4,362.3
at fair value - through profit and loss 10.1 10.1
Aggregation according to measurement categories under IFRS 9 as at 30 Sep 2023
EUR million Carrying amount of financial instruments Fair Value
Total
Financial assets
at amortised cost 2,759.5 3,221.1
at fair value - recognised directly in equity without recycling 9.9 9.9
at fair value - through profit and loss 544.1 544.1
Financial liabilities
at amortised cost 4,796.1 4,619.2
at fair value - through profit and loss 11.1 11.1
Fair value measurement
The table below presents the fair values of recurring, non-recurring and other financial instruments measured at fair value in line with the underlying measurement level. The individual measurement levels have been defined as follows in line with the inputs:
-- Level 1: (unadjusted) quoted prices in active markets for identical assets or liabilities.
-- Level 2: inputs for the measurement other than quoted market prices included within Level 1 that areobservable in the market for the asset or liability, either directly (as quoted prices) or indirectly (derivablefrom quoted prices).
-- Level 3: inputs for the measurement of the asset or liability not based on observable market data.
Hierarchy of financial instruments measured at fair value as at 31 Mar 2024
Fair value hierarchy
EUR million Total Level 1 Level 2 Level 3
Assets
Other financial assets 10.9 - - 10.9
Derivative financial instruments
Hedging transactions 100.7 - 100.7 -
Other derivative financial instruments 13.1 - 13.1 -
Cash and cash equivalents 188.0 188.0 - -
Liabilities
Derivative financial instruments
Hedging transactions 120.7 - 120.7 -
Other derivative financial instruments 10.1 - 10.1 -
Hierarchy of financial instruments measured at fair value as at 30 Sep 2023
Fair value hierarchy
EUR million Total Level 1 Level 2 Level 3
Assets
Other receivables 38.9 - - 38.9
Other financial assets 10.8 - - 10.8
Derivative financial instruments
Hedging transactions 236.4 - 236.4 -
Other derivative financial instruments 32.1 - 32.1 -
Cash and cash equivalents 472.2 472.2 - -
Liabilities
Derivative financial instruments
Hedging transactions 25.9 - 25.9 -
Other derivative financial instruments 11.1 - 11.1 -
At the end of every reporting period, TUI Group checks whether there are any reasons for reclassification to or from one of the measurement levels. Financial assets and financial liabilities are generally transferred out of Level 1 into Level 2 if the liquidity and trading activity no longer indicate an active market. The opposite situation applies to potential transfers out of Level 2 into Level 1. In the reporting period, there were no transfers between Level 1 and Level 2.
Reclassifications from Level 3 to Level 2 or Level 1 are made if observable market price quotations become available for the asset or liability concerned. In the reporting period there were no transfers from or to Level 3. TUI Group records transfers from or to Level 3 at the date of the obligating event or occasion triggering the transfer.
Level 1 financial instruments
The fair value of financial instruments for which an active market exists is based on quoted prices at the reporting date. An active market exists if quoted prices are readily and regularly available from an exchange, dealer, broker, pricing service or regulatory agency and these prices represent actual and regularly occurring market transactions on an arm's length basis. These financial instruments are classified as Level 1. The fair values correspond to the nominal amounts multiplied by the quoted prices at the reporting date. Level 1 financial instruments primarily comprise shares in listed companies classified as at fair value through OCI and bonds issued classified as financial liabilities at amortised cost.
Level 2 financial instruments
The fair values of financial instruments not traded in an active market, e.g., over-the-counter (OTC) derivatives, are determined by means of valuation techniques. These valuation techniques make maximum use of observable market data and minimise the use of Group-specific assumptions. If all essential inputs for the determination of the fair value of an instrument are observable, the instrument is classified as Level 2.
If one or several key inputs are not based on observable market data, the instrument is classified as Level 3.
The following specific valuation techniques are used to measure financial instruments:
-- For OTC bonds, debt components of warrants and convertible bonds, liabilities to banks, promissory notesand other non-current financial liabilities as well as for current other receivables, current financial liabilitiesand non-current trade and other receivables, the fair value is determined as the present value of future cashflows, taking account of observable yield curves and the respective credit spread, which depends on the creditrating.
-- The fair value of over-the-counter derivatives is determined by means of appropriate calculation methods,e.g. by discounting the expected future cash flows. The forward prices of forward transactions are based on thespot or cash prices, taking account of forward premiums and discounts. The fair values of optional hedges arecalculated based on option pricing models. The fair values determined on the basis of the Group's own systems areperiodically compared with fair value confirmations of the external counterparties.
-- Other valuation techniques, e.g., discounting future cash flows, are used to determine the fair values ofother financial instruments.
Level 3 financial instruments
The table below presents the fair values of the financial instruments measured at fair value on a recurring basis, classified as Level 3:
Financial assets measured at fair value in Level 3 EUR million Other receivables IFRS9 Other financial assets IFRS 9 Balance as at 1 Oct 2022 106.5 10.5 Additions - 0.1 acquisition - 0.1 Disposals - 70.6 - 24.0 sale - - 24.0 payment - 70.6 - Total gains or losses for the period 3.0 23.8 recognised through profit and loss 3.0 - recognised in other comprehensive income - 23.8 Foreign currency effects - 0.4 Balance as at 30 Sep 2023 38.9 10.8 Balance as at 1 Oct 2023 38.9 10.8 Disposals - 39.1 - payment - 39.1 - Total gains or losses for the period 0.2 0.1 recognised through profit and loss 0.2 - recognised in other comprehensive income - 0.1 Balance as at 31 Mar 2024 0.0 10.9
Evaluation process
The fair value of financial instruments in level 3 has been determined by TUI Group's financial department using the discounted cash flow method. This involves the market data and parameters required for measurement being compiled or validated. Non-observable input parameters are reviewed based on internally available information and updated if necessary.
In principle, the unobservable input parameters relate to the following parameters: the (estimated) EBITDA margin is in a range between -5.9 % and 34,2 %. The constant growth rate is 1 %. The weighted average cost of capital (WACC) is 10.59 %. Due to materiality, no detailed figures have been provided. With the exception of the WACC, there is a positive correlation between the input factors and the fair value.
Financial instruments classified as Other financial assets include shares in corporations. The total fair value of these financial investments is EUR9.9m (previous year EUR9.9m). None of these strategic financial investments were sold in the completed financial year. There were no significant dividend payments resulted from these financial investments (previous year EUR0.1m).
In previous year the Other receivables according to IFRS 9 in Level 3 at a carrying amount of EUR38.9m relate to a discounted variable purchase price receivable from the sale of Riu Hotels S.A., carried as a financial instrument in the measurement category at fair value through profit and loss. The nominal value of the receivable is EUR39.7m. After granting a discount of EUR0.6m, the purchase price receivable was settled early on 15 December 2023. Income of EUR0.2m was recognised in the income statement in the first quarter of the financial year.
Effects on results
The effects of remeasuring financial assets carried at fair value through OCI as well as the effective portions of changes in fair values of derivatives designated as cash flow hedges are listed in the statement of changes in equity. 19. Contingent liabilities
As at 31 March 2024, contingent liabilities amounted to EUR72.6m (as at 30 September 2023 EUR73.7m). They are mainly attributable to the granting of guarantees for the benefit of hotel activities and the granting of guarantees for contingent liabilities from aircraft leasing agreements. The contingent liabilities are reported at an amount representing the best estimate of the expenditure required to meet the potential obligation at the balance sheet date. 20. Other financial commitments
Nominal values of other financial commitments EUR million 31 Mar 2024 30 Sep 2023 Order commitments in respect of capital expenditure 2,624.7 2,172.5 Other financial commitments 250.5 192.2 Total 2,875.2 2,364.7
As at 31 March 2024 order commitments in respect of capital expenditure increased by EUR452.2m as against
30 September 2023.
The increase in order commitments is due to orders for new aircraft and new hotel development projects undertaken by Hotels & Resorts segment. 21. Note to the unaudited condensed consolidated Cash Flow Statement
The cash flow statement shows the flow of cash and cash equivalents on the basis of a separate presentation of cash inflows and outflows from operating, investing and financing activities. The effects of changes in the group of consolidated companies and of foreign currency translation are eliminated.
In the period under review, cash and cash equivalents decreased by EUR412.3m to EUR1,648.2m.
In H1 2024, the cash outflow from operating activities totalled EUR268.5m (H1 2023 cash outflow of EUR284.4m). This amount includes cash inflows of EUR31.3m (H1 2023 EUR13.8m) from interest payments and EUR19.4m (H1 2023 EUR2.8m) from dividend payments received from companies measured at equity. Income tax payments resulted in a cash outflow of EUR83.9m (H1 2023 EUR50.4m).
The total cash outflow from investing activities totalled EUR320.4m (H1 2023 cash outflow of EUR219.4m). This amount includes a cash outflow for capital expenditure on property, plant and equipment and intangibles of EUR390.3m. The Group recorded a cash inflow of EUR46.0m from the disposal of property, plant and equipment and intangible assets. TUI recorded cash inflows of EUR39.1m from the earn-out payment in connection with the sale of the stakes in Riu Hotels S.A., effected in financial year 2021, EUR12.0m from the sale of the stake in WOT Hotels Adriatic Assets Company, and EUR2.9m from the sale of the stake in Raiffeisen-Tours RT Reisen GmbH. The TUI Group contributed EUR73.5m to the capital increase of Pep Toni Hotels S.A. and EUR4.3m to the capital increase of the TUI Global Hospitality Fund. TUI's share in the capitalization of the joint venture Fly4 Airlines Green Limited amounted to EUR3.9m. For the sale of Club Hotel CV to the TUI Global Hospitality Fund, the TUI Group received EUR44.1m less cash outflows.
The cash inflow from financing activities totalled EUR173.7m (H1 2023 cash inflow of EUR355.6m).
From the sustainability-linked bond issued in February 2024, TUI AG received EUR486.8 million after deducting discounts and transaction costs. In the period under review, TUI AG took out bilateral bank facilities of EUR150.0m. Other TUI Group companies took out loans worth EUR166.6m. A cash outflow of EUR356.2m resulted from the redemption of financial liabilities, including an amount of EUR319.3m for lease liabilities. The syndicated credit facility was not used as at the balance sheet date. Interest payments resulted in a cash outflow of EUR197.1m, while a cash outflow of EUR76.0m was attributable to the payment of dividends to minority shareholders.
In addition, cash and cash equivalents increased by EUR2.8m (H1 2023 decrease by EUR12.8m) due to changes in exchange rates.
As at 31 March 2024 cash and cash equivalents worth EUR712.3m were subject to restrictions (as at 30 September 2023 EUR772.2m).
On 30 September 2016, TUI AG entered into a long-term agreement to close the gap between the obligations and the fund assets of defined benefit pension plans in the UK. At the balance sheet date, an amount of EUR67.9m was deposited as security within a bank account (as at 30 September 2023 EUR66.9m). TUI Group can only use this amount of cash and cash equivalents if it provides alternative collateral.
Furthermore, an amount of EUR116.3m (as at 30 September 2023 EUR116.3m) related to cash collateral received, which was deposited with a Belgian subsidiary without acknowledgement of debt by the Belgian tax authorities in financial year 2013 in respect of long-standing litigation over VAT refunds for the period from 2001 to 2011. The purpose was to suspend the accrual of interest for both parties. In order to collateralise a potential repayment, the Belgian government was granted a bank guarantee. Due to the bank guarantee, TUI's ability to dispose of the cash and cash equivalents is restricted.
The remaining EUR528,1m (as at 30 September 2023 EUR589.0m) relate to cash and cash equivalents to be deposited due to statutory or regulatory requirements, mainly in order to secure customer deposits and credit card payables. 22. Reporting segments
Revenue by segment for the period from 1 Oct 2023 to 31 Mar 2024 EUR million External Group H1 2024 Total Hotels & Resorts 499.0 366.1 865.1 Cruises 383.8 - 383.8 TUI Musement 344.4 132.0 476.4 Consolidation - - 0.6 - 0.6 Holiday Experiences 1,227.2 497.5 1,724.7 Northern Region 2,790.0 155.7 2,945.7 Central Region 2,791.5 38.6 2,830.1 Western Region 1,140.0 60.5 1,200.5 Consolidation - - 243.7 - 243.7 Markets & Airlines 6,721.6 11.0 6,732.6 All other segments 3.7 2.8 6.5 Consolidation - - 511.3 - 511.3 Total 7,952.5 - 7,952.5 Revenue by segment for the period from 1 Oct 2022 to 31 Mar 2023 EUR million External Group H1 2023 Total Hotels & Resorts 429.2 313.7 742.9 Cruises 257.1 - 257.1 TUI Musement 290.0 110.3 400.3 Consolidation - - 0.2 - 0.2 Holiday Experiences 976.4 423.7 1,400.1 Northern Region 2,534.6 168.7 2,703.3 Central Region 2,375.9 41.0 2,416.9 Western Region 1,012.6 74.1 1,086.7 Consolidation - - 272.1 - 272.1 Markets & Airlines 5,923.2 11.6 5,934.8 All other segments 3.9 2.7 6.6 Consolidation - - 438.1 - 438.1 Total 6,903.4 - 6,903.4
The segment data shown are based on regular internal reporting to the Executive Board. Since the 2020 fiscal year, the internationally more commonly used earnings measure "underlying EBIT" is used for value-based management.
Accordingly, this represents the segment performance indicator within the meaning of IFRS 8.
We define the EBIT in underlying EBIT as earnings before interest, income taxes and result from the measurement of the Group's interest rate hedging instruments. Impairment losses on goodwill are by definition included in EBIT.
In calculating Underlying EBIT from EBIT, we adjust for separately disclosed items (including any goodwill impair-ment) and expenses from purchase price allocations. Separately disclosed items include adjustments for income and expense items that reflect amounts and frequencies of occurrence rendering an evaluation of the operating profitability of the segments and Group more difficult or causing distortions. These items include gains on disposal of financial investments, significant gains and losses from the sale of assets as well as significant restructuring and integration expenses and any goodwill impairments. Effects from purchase price allocations, ancillary acquisition costs and conditional purchase price payments are adjusted. Expenses from purchase price allocations relate to the amortisation of intangible assets from acquisitions made in previous years.
In H1 2024, underlying EBIT includes results of investments accounted for using the equity method of EUR133.4m (H1 2023 EUR74.0m). For a split up by segments, please refer to Note 6 'Share of result of investments accounted for using the equity method'.
Underlying EBIT by segment EUR million H1 2024 H1 2023 Hotels & Resorts 208.1 149.7 Cruises 104.5 15.0 TUI Musement - 27.1 - 26.2 Holiday Experiences 285.5 138.4 Northern Region - 215.3 - 269.5 Central Region - 87.8 - 131.1 Western Region - 118.4 - 102.1* Markets & Airlines - 421.5 - 502.4* All other segments - 46.7 - 31.3* Total - 182.7 - 395.3 * Due to the re-segmentation of an IT-company from Western Region to All other segments in the current year the previous periods have been adjusted by EUR0.8m. Impairment on other intangible assets, property, plant and equipment and right of use assets EUR million H1 2024 H1 2023 Hotels & Resorts - 3.3 Holiday Experiences - 3.3 Northern Region 0.3 1.6 Markets & Airlines 0.3 1.6 Total 0.3 4.9 Reconciliation to underlying EBIT of TUI Group EUR million H1 2024 H1 2023 Earnings before income taxes - 403.1 - 648.8 plus: Net interest expenses (excluding expense / income from measurement of interest hedges) 207.3 233.1 plus: (Income) expense from measurement of interest hedges 1.1 9.5 EBIT - 194.7 - 406.3 Adjustments: plus / less: Separately disclosed items 1.5 - 1.7 plus: Expense from purchase price allocation 10.5 12.7 Underlying EBIT - 182.7 - 395.3
Net expenses for separately disclosed items of EUR1.5m included restructuring expenses of EUR5m in All Other Segments, EUR1m in Northern Region and EUR0.3m in Central Region, partially offset by EUR1m disposal gains in Holiday Experiences, EUR3m release of restructuring provisions no longer needed in Western Region as well as income of EUR2m Sunwing earn-out from the sale of the tour operator business by the equity method accounted company Sunwing Travel Group Inc., Ontario, in Northern Region in the previous fiscal year and EUR1m disposal losses in Markets & Airlines.
Net income for separately disclosed items of EUR1.7m in H1 2023 included EUR3m income from the release of restructuring provisions no longer needed in Northern Region, EUR2m income from the release of restructuring provisions no longer needed in Western Region and EUR1m release of restructuring provisions no longer needed in TUI Musement for the termination of the Tantur / TUI Russia business in the previous financial year, partly offset by EUR3m restructuring expenses in All Other Segments and EUR1m subsequent purchase price adjustments in the Hotels & Resorts segment.
Expenses for purchase price allocations of EUR10.5m (previous year EUR12.7m) relate in particular to the scheduled amortisation of intangible assets from acquisitions made in previous years. 23. Related parties
Apart from the subsidiaries included in the Interim Financial Statements, TUI AG, in carrying out its business activities, maintains direct and indirect relationships with related parties. All transactions with related parties were executed on an arm's length basis.
Detailed information on related parties is provided under section 51 in the Notes to the consolidated financial statements 2023.
In order to strengthen the equity, the shareholders of Pep Toni Hotels S.A. have decided to make additional funds available to the company. In January 2024, TUI paid EUR73.5m into the capital reserve.
On 31 October 2023 the subsidiary Club Hotel CV, S.A. (Robinson Club Cabo Verde) was sold to the associated company TUI Global Hospitality Fund S.C.S. For further details please refer to the section 'Divestments'. 24. Significant transactions after the balance sheet date
The three bilateral credit lines which were utilised in the amount of EUR150m as at 31 March 2024 have been repaid in April 2024.
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[1] Since the merger of TUI AG and TUI Travel PLC in 2014
[2] Bookings up to 5 May 2024, relate to all customers whether risk or non-risk and includes amendments and voucher re-bookings
[3] FY 2024 trading data (excluding Blue Diamond in Hotels & Resorts) as of 5 May 2024 compared to 2023 trading data
[4] Based on constant currency and within the framework of the macroeconomic and geopolitical uncertainties currently known, including developments in the Middle East
[5] at constant currency
[6] Net leverage ratio defined as net debt (Financial liabilities plus lease liabilities less cash & cash equivalents less other current financial assets) divided by underlying EBITDA
[7] Further details on our Sustainability Agenda are published in our Annual Report 2023 and also on our website under
Responsibility (tuigroup.com) (not subject of an auditor's review)
[8] Bookings up to 5 May 2024 relate to all customers whether risk or non-risk and include amendments and voucher re-bookings.
[9] Depending on the source market, Summer season starts in April or May and ends in September, October, or November.
[10] FY 2024 trading data (excluding Blue Diamond in Hotels & Resorts) as of 5 May 2024 compared to 2023 trading data
[11] Number of hotel days open multiplied by beds available in the hotel (Group owned and leased hotels)
[12] Occupied beds divided by available beds (Group owned and lease hotels)
[13] Board and lodging revenue divided by occupied bed nights (Group owned and leased hotels)
[14] Number of operating days multiplied by berths available on the operated ships
[15] Achieved passenger cruise days divided by available passenger cruise days
[16] TUI Cruises: Ticket revenue divided by achieved passenger cruise days. Marella Cruises: Revenue (stay on ship inclusive of transfers, flights and hotels due to the integrated nature of Marella Cruises) divided by achieved passenger cruise days
[17] Details on our strategy see TUI Group Annual Report 2023 from page 24
[18] Net leverage ratio defined as net debt (Financial liabilities plus lease liabilities less cash & cash equivalents less other current financial assets) divided by underlying EBITDA
[19] Revenue Passenger Kilometers (RPK) or Revenue Passenger Miles (RPM) is an aviation industry metric that indicates the number of
kilometers traveled by paying passengers
[20] Since the merger of TUI AG and TUI Travel PLC in 2014
[21] Since the merger of TUI AG and TUI Travel PLC in 2014
[22] Since the merger of TUI AG and TUI Travel PLC in 2014
Responsibility Statement
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting and in the accordance with (German) principles of proper accounting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim Group management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.
Hanover, 13 May 2024
The Executive Board
Sebastian Ebel
Mathias Kiep
Peter Krueger
Sybille Reiss
David Schelp
Review Report
To TUI AG, Berlin/Germany and Hanover/Germany
We have reviewed the condensed interim consolidated financial statements - comprising the condensed income statement, the condensed statement of comprehensive income, the condensed statement of financial position, the condensed statement of changes in equity, the condensed statement of cash flows as well as selected explanatory notes to the consolidated financial statements - and the interim group management report for the period from 1 October 2023 until 31 March 2024 of TUI AG, Berlin and Hanover, which are part of the half-year financial report under § 115 WpHG (Wertpapierhandelsgesetz: German Securities Trading Act). The preparation of the condensed interim consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS) applicable to interim financial reporting as adopted by the EU, and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management reports is the responsibility of the entity's executive board. Our responsibility is to issue a review report on the condensed interim consolidated financial statements and on the interim group management report based on our review.
We conducted our review of the condensed interim consolidated financial statements and of the interim group management report in compliance with the German Generally Accepted Standards for the Review of Financial Statements promulgated by the Institut der Wirtschaftsprüfer (IDW) and in supplementary compliance with the International Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". Those standards require that we plan and perform the review to obtain a limited level of assurance to preclude through critical evaluation that the condensed interim consolidated financial statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU or that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of personnel of the entity and to analytical procedures applied to financial data and thus provides less assurance than an audit. Since, in accordance with our engagement, we have not performed an audit, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the condensed interim consolidated financial statements of TUI AG, Berlin and Hanover, have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, or that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.
Hanover/Germany, 13 May 2024
Deloitte GmbH
Wirtschaftsprüfungsgesellschaft
Annika Deutsch Elmar Meier
German Public Auditor German Public Auditor
Cautionary statement regarding forward-looking statements
The present Half Year Financial Report contains various statements relating to TUI Group's and TUI AG's future development. These statements are based on assumptions and estimates. Although we are convinced that these forward-looking statements are realistic, they are not guarantees of future performance since our assumptions involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Such factors include market fluctuations, the development of world market prices for commodities and exchange rates or fundamental changes in the economic environment. TUI does not intend to and does not undertake any obligation to update any forward-looking statements in order to reflect events or developments after the date of this Report.
Financial calendar
Date Half Year Financial Report H1 2024 15 May 2024 Quarterly Statement Q3 2024 14 August 2024 Annual Report 2024 11 December 2024
Contacts
Nicola Gehrt
Group Director Investor Relations
Tel: + 49 (0)511 566 1435
Adrian Bell
Senior Manager Investor Relations
Tel: + 49 (0)511 2332
James Trimble
Investor Relations Manager
Tel: +44 (0)1582 315 293
Stefan Keese
Investor Relations Manager
Tel: + 49 (0)511 566 1387
Anika Heske
Junior Investor Relations Manager
Tel: + 49 (0)511 566 1425
TUI AG
Karl-Wiechert-Allee 23
30625 Hannover
Tel: + 49 (0)511 566 00
www.tuigroup.com
This Half Year Financial Report, the presentation slides and the video webcast for H1 2024 (published on 15 May 2024) are available at the following link: www.tuigroup.com/en-en/investors
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ISIN: DE000TUAG505 Category Code: IR TIDM: TUI LEI Code: 529900SL2WSPV293B552 OAM Categories: 1.2. Half yearly financial reports and audit reports/limited reviews Sequence No.: 321496 EQS News ID: 1902815 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
May 15, 2024 02:02 ET (06:02 GMT)
