9th Feb 2021 08:32
(Alliance News) - Tui AG on Tuesday reported a dramatic 88% drop in first quarter revenue as the Covid-19 pandemic led to extended travel restrictions across the holiday company's key European markets.
Total revenue for the three months ended December 31, Tui's first financial quarter, plummeted to just EUR468.1 million from EUR2.85 billion a year before as travel restrictions in Europe across November and December severely hurt the Anglo-German tour operator.
Hotels & Resorts revenue dropped 66% in the quarter to EUR56.5 million from EUR166.2 million as only 116 of its hotels were open at the quarter end, versus around 229 open hotels a year before. This reflected "usual winter seasonality and limited operations from travel restrictions", Tui said.
New variants of Covid-19 have meant governments in Europe have been forced to impose more international travel curbs.
Revenue from Cruises fell to just EUR600,000 from EUR238.4 million. At Tui Musement - formerly known as Destination Experiences - revenue was down 95% at EUR10.5 million from EUR216.7 million.
Tui's underlying loss before interest and tax stretched to EUR698.6 million from EUR146.7 million a year before.
"Our assumption for Q2 FY 2021, is for working capital development to correlate with vaccine programme rollout and lifting of travel restrictions, with significant upside anticipated should travel restrictions be lifted ahead of Easter (early April 2020)," Tui said.
Tui said it has enough financial liquidity to bridge to the expected summer 2021 travel recovery, with EUR2.1 billion in cash and available facilities after its recent third support package of EUR1.8 billion. It said 2.8 million customers have booked holidays for summer 2021.
Shares in Tui were up 0.6% at 333.30 pence in London on Tuesday morning.
By Anna Farley; [email protected]
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