First Quarter Results ended 31 December 2012 and Interim Management Statement
- Outperformance in UK & Nordic markets
- Our unique holidays driving increases in UK market share
- Q1 underlying operating loss reduced by 15%1
- Expect performance towards the top end of roadmap guidance for full year2
Peter Long, Chief Executive of TUI Travel PLC, commented:
?We are pleased to report that our strong trading momentum has continued with particularly encouraging growth in the UK and Nordics. Our leading position in the UK has further benefited from increased market share as a result of higher demand for our unique holidays. Across all our key markets demand for the overseas holiday remains strong, despite the overall economic environment.
“We are confident that our customer focused strategy is driving performance and based on current trading we expect to be towards the top end of our roadmap guidance of 7 to 10% underlying operating profit growth for the 2013 financial year.?
Highlights
- Positive trading momentum
- Operating loss reduced by ?16m to ?93m (excluding the impact of empty leg accounting1?which has no full year impact). Underlying Q1 operating loss of ?116m (2012: loss of ?109m).
- Significant continued growth in UK cumulative market share (GFK Ascent) with Summer 2013 up 4% and the key January booking period up 2%, gaining on the 7% increase in the same period last year.
- Strong trading in the Nordic region and Accommodation Wholesaler.
- Unique holidays and direct distribution strategies delivering
- Unique holiday bookings in the UK, Nordics and Germany increased by 15%, 10% and 6% year-on-year respectively for Summer 2013.
- Direct distribution sales in the UK and Nordics for Summer 2013 of 90% (2012: 89%) and 85% (2012: 84%) with online sales accounting for 37% (2012: 36%) and 65% (2012: 63%) respectively.
- Online Accommodation growth
- Accommodation Wholesaler continues to build a global leadership position with TTV up by 9% for Summer 2013, driven by Latin America and Asia where TTV is up by 23%.
- Strong current trading
- Winter 2012/13 ? 83% sold with higher margins and average selling prices in key source markets.
- Strong Summer 2013 bookings in the UK and Nordics, up 9% and 10% respectively.
- Summer 2013 margins ahead of prior year in key source markets.
(1) Figure excludes impact of empty leg accounting. Empty legs relate to the cost incurred by aircraft returning from the beginning and end of each season without customers (an empty leg of a round trip). As a result of the change in estimate in empty leg accounting referred to in the year-end accounts, the phasing of the empty leg costs will change in each quarter but there will be no full-year cost impact.
(2) Based on current trading
Investor and Analyst Conference Call
A conference call for investors and analysts will take place today at 8.15am (GMT). The dial-in arrangements for the call are as follows:
Telephone: +44 (0)1452 555 566
Participant Code: 94124221
A presentation to accompany the conference call will be made available at 7.30am (GMT) via our corporate website:?www.tuitravelplc.com
A recording of the conference call will be available for 30 days on:
Telephone: +44 (0)1452 550 000
Participant Code: 94124221
Pre-close Trading Update
TUI Travel will issue a pre-close trading update on Wednesday 27th March 2013.