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TUI Group Posts Wider Q2 Loss, Turnover Declines

With the withdrawal of fiscal year 2020 guidance on March 15 due to Covid-19, Tour operator TUI Group (TUIFF.PK) Wednesday reported wider losses for the second quarter, as the turnover slid more than 10 percent year-on-year.

The Group loss for the quarter reached 740.5 million euros, wider than last year's loss of 176.9 million euros. Loss per share was 1.30 euros versus 0.35 euros loss last year.

TUI said it appplied IFRS 16 from October 2019. Therefore prior year figures were not adjusted

On IFRS 16 basis, underlying EBITDA for the period was a negative 409.6 million euros, higher than last year's negative 105.7 million euros. On the same basis, underlying EBIT was a negative 700.2 million euros, compared to a negative 242.1 million euros.

The Group's turnover for the second quarter slid to 2.788 billion euros from 3.101 billion euros in the same quarter of last year.

Looking ahead, the Group said it expects to permanently reduce its overhead cost base by 30 percent across the entire Group, impacting potentially 8000 jobs globally that will either not be recruited or reduced.

The Group also noted that the effects of Covid-19 would have significant impact on its 2020 Group earnings. It expects Group Turnover and underlying EBIT to decline significantly compared to the prior year.

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