German travel and tourism group TUI AG (TUIFF.PK) Wednesday reported a wider loss for its second quarter, impacted by one-off expenses for its plan changes. The company lifted its outlook for full-year operating result.
According to the firm, one-off effects related to impairments of a hotel project in Italy, provisions associated with a longer start-up phase in the framework of fleet expansion in Hapag-Lloyd Kreuzfahrten, and expenses for measures to create a considerably leaner holding.
Commenting on the company's oneTUI action plan intended for further strategic development of the Group, CFO Horst Baier said the current financial year will be a year of transition on the company's path towards resuming dividend payments.
For the second quarter, Group loss attributable to shareholders widened to 248.4 million euros or 1.01 euros per share from 185.2 million euros or 0.76 euros per share in the previous year.
Turnover grew 1.9 percent to 3.34 billion euros. TUI Travel turnover improved 0.6 percent, turnover from TUI Hotels & Resorts surged 51.2 percent and Cruises turnover was up 11.1 percent from a year earlier.
The company reported a negative group earnings before interest, tax, depreciation and amortization of 180.2 million euros, compared to 227 million euros last year.
For the first half, loss attributable to shareholders of TUI AG was 385.4 million euros or 1.58 euros per share, wider than 272.8 million euros or 1.13 euros per share reported last year. Turnover increased 1.6 percent to 6.84 billion euros.
Citing the continued sound operating performance, above all in TUI Travel, the firm lifted its outlook for the full-year operating result. The board now expects underlying EBITA to improve year-on-year. Although net one-off expenses exceed its original guidance, the board continues to expect a slight increase in reported EBITA.
The Group result before minorities will remain positive for the full year, but will be considerably impacted by one-off effects, TUI Group said.
The Group aims to achieve an operating result or underlying EBITA, of around 1 billion euros by financial year 2014/15, based on the measures implemented in the framework of the oneTUI programme.
The programme also includes an adjustment of staff costs. The headcount in the Group holding will be reduced from currently 186 to less than 100, the company said.
On Frankfurt's Xetra, TUI is currently trading at 9.34 euros, up 3.27 percent, on a volume of 601,605 shares.
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