TUI AG Underlying loss increased to ?88m versus prior quarter (Q2 2021 loss: ?84m) reflecting ramp up costs of operations ahead of peak summer period.
All other segments ? million Q3 2021 Q3 2020 Var. % 9M 2021 9M 2020 Var. % Revenue 8.7 1.7 + 411.8 22.3 86.2 - 74.1 Underlying EBIT - 0.8 - 53.4 + 98.5 - 45.9 - 118.0 + 61.1 Underlying EBIT at constant currency) - 0.7 - 53.4 + 98.7 - 46.0 - 118.0 + 61.0
Underlying EBIT loss improved to ?1m versus prior quarter (Q3 2021 loss: ?19m) reflecting our ongoing cost-savings measures across head-office and other entities, as part of our global realignment programme.
Financial position and net assets
Cash Flow / Net capex and investments / Net debt
In the period under review the TUI Group's operating cash flow continued to be impacted by the travel restrictions imposed by COVID-19 in March 2020.
At ?1,089.4m, the cash outflow from operating activities decreased by ?869.6m compared to previous year.
The net debt as of 30 June 2021 increased by ?482.5m to ?6,348.7m year-on-year.
Net debt
30 June 2021 30 June 2020 Var. %
Financial debt 4,578.9 4,218.6 + 8.5
Lease liabilities 3,307.8 3,645.2 - 9.3
Cash and cash equivalents 1,524.4 1,988.0 - 23.3
Short-term interest-bearing investments 13.6 9.5 + 43.2
Net debt 6,348.7 5,866.2 + 8.2
Net capex and investments
? million Q3 2021 Q3 2020 Var. % 9M 2021 9M 2020 Var. %
Cash gross capex
Hotels & Resorts 22.1 44.6 - 50.4 92.0 215.2 - 57.2
Cruises 1.2 - 0.8 n. a. 16.3 42.7 - 61.8
TUI Musement 3.9 3.1 + 25.8 9.7 10.4 - 6.7
Holiday Experiences 27.1 46.9 - 42.2 118.0 268.3 - 56.0
Northern Region 2.2 - 1.0 n. a. 7.6 29.9 - 74.6
Central Region 1.2 2.8 - 57.1 3.7 11.7 - 68.4
Western Region 1.9 3.0 - 36.7 3.5 14.8 - 76.4
Markets & Airlines* 20.3 8.2 + 147.6 35.3 68.9 - 48.8
All other segments 21.2 14.2 + 49.3 54.1 53.6 + 0.9
TUI Group 68.7 69.3 - 0.9 207.4 390.9 - 46.9
Net pre delivery payments on aircraft - 54.5 0.6 n. a. - 86.1 - 41.8 - 106.0
Financial investments 1.2 75.7 - 98.4 22.9 132.6 - 82.7
Divestments - 29.8 - 368.4 + 91.9 - 266.9 - 417.2 + 36.0
Net capex and investments - 14.4 - 222.8 + 93.5 - 122.8 64.4 n. a. * Including ?15.0m for Q3 2021 (previous year: ?3.4m) and ?20.5m for 9M 2021 (previous year ?12.5m) 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.
Cash gross capex in 9M 2021 was 46.9% lower year-on-year, reflecting our continuously disciplined capex management. Net capex and investments of ?-122.8m declined by ?187.2m year-on-year.
The divestments related mainly to the sale and lease back of spare engines and aircraft. Previous year's divestments included the sale of Hapag-Lloyd Kreuzfahrten to our joint venture TUI Cruises and the sale of two German specialist tour operators.
Assets and liabilities
Assets and liabilities
30 June 2021 30 Sep 2020 Var. %
Non-current assets 11,314.2 12,647.8 - 10.5
Current assets 3,321.7 2,693.4 + 23.3
Assets 14,635.9 15,341.1 - 4.6
Equity - 524.7 218.1 n. a.
Provisions 2,197.4 2,317.3 - 5.2
Financial liabilities 4,578.9 4,269.0 + 7.3
Other liabilities 8,384.3 8,536.7 - 1.8
Liabilities 14,635.9 15,341.1 - 4.6 Comments on the consolidated income statement
Unaudited condensed consolidated income statement of TUI Group for the period from
1 Oct 2020 to 30 Jun 2021
? million Q3 2021 Q3 2020 Var. % 9M 2021 9M 2020 Var.
%
Revenue 649.7 71.8 +804.9 1,365.9 6,710.4 -
79.6
Cost of sales 1,124.2 1,009.0 +11.4 2,642.4 7,968.7 -
66.8
Gross loss - 474.5 - 937.3 +49.4 - - - 1.4
1,276.4 1,258.3
Administrative expenses 216.5 202.7 +6.8 604.2 731.1 -
17.4
Other income 10.1 4.5 +124.4 20.9 97.6 -
78.6
Other expenses 1.0 14.9 - 93.3 9.2 18.6 -
50.5
Impairment of goodwill - 67.7 n. a. - 67.7 n. a.
Impairment (+) / Reversal of impairment (-) of financial - 6.8 72.1 n. a. - 35.9 95.6 n. a.
assets
Financial income - 1.9 4.8 n. a. 25.0 27.2 - 8.1
Financial expense 100.5 74.9 +34.2 356.5 204.6 +74.2
Share of result of investments accounted for using the equity - 69.4 - 107.4 +35.4 - 226.5 - 63.7 -
method 255.6
Impairment (+) / Reversal of impairment (-) of net investments - 51.2 n. a. - 0.5 53.0 n. a.
in joint ventures and associates
Earnings before income taxes - 846.9 - +44.2 - - - 1.0
1,518.8 2,390.7 2,367.7
Income taxes (expense (+), income (-)) 92.9 - 9.1 n. a. 47.3 - 43.1 n. a.
Group loss - 939.8 - +37.7 - - - 4.9
1,509.6 2,438.0 2,324.7
Group loss attributable to shareholders of TUI AG - 934.8 - +36.9 - - - 2.9
1,481.4 2,409.6 2,342.8
Group loss / profit attributable to non-controlling interest - 5.0 - 28.2 +82.3 - 28.4 18.1 n. a.
The development of TUI Group's revenue and earnings in the first nine months 2021 was still materially impacted by the suspension of the vast majority of our tour operation, aviation, hotel and cruise operations as a result of the global travel restrictions in order to contain the spread of COVID-19. TUI Group's results generally also reflect the significant seasonal swing in tourism between the winter and summer travel months, however this period the impact is less evident due to the COVID-19 pandemic.
Consolidated turnover in 9M 2021 declined by 79.6% year-on-year to ?1.4bn. This decline reflects the worldwide travel restrictions imposed to stem the spread of COVID-19.
Alternative performance measures
We use underlying EBIT for our management system. We define the EBIT in underlying EBIT as earnings before interest, taxes and result of the measurement of the Group's interest hedges.
One-off items carried here 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 the 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. Any effects from purchase price allocations, ancillary acquisition costs and conditional purchase price payments are adjusted. Also, any goodwill impairments are adjusted in the reconciliation to underlying EBIT.
Reconciliation to underlying EBIT
? million Q3 Q3 2020 Var. 9M 2021 9M 2020 Var.
2021 % %
Earnings before income taxes - - +44.2 - - - 1.0 (MORE TO FOLLOW) Dow Jones Newswires
August 12, 2021 02:00 ET (06:00 GMT)
