16th May 2014 13:30
CRAWLEY (Alliance News) - German travel and tourism group TUI AG Friday reported a narrower loss for the second quarter, helped by lower costs, even as turnover dropped. Further, TUI said it is very confident of achieving its earnings targets for the full year.
TUI CEO Fritz Joussen said, "Lean structures and cost discipline are giving us latitude and room for manoeuvre for the future. We are fit for growth and are planning to grow again as a Group.''
Group loss totaled 197.8 million euros (USD271.3 million), compared to 310.6 million euros loss last year. Prior-year results have been restated.
Loss before income taxes narrowed to 269.7 million euros from 409.1 million euros in the prior-year quarter.
Turnover, however, dropped 5.3% to 3.17 billion euros from the restated 3.34 billion euros, while cost of sales declined 9.7% to 2.971 billion euros.
TUI Travel's turnover slid 5.6% to 2.962 billion euros, while that of TUI Hotels & Resorts fell over 21% to 105.4 million euros. Cruises reported turnover of 94.1 million euros compared to 69.1 million euros last year.
For the first half of the year, group loss narrowed 29.4% to 351.2 million euros while turnover slipped 4.1% to 6.6 billion euros.
According to the company, the measures defined by the oneTUI program is taking effect, with a return on invested capital of 12% in the RIU Group which already exceeded the target of 11% previously.
Further, TUI said it is confident that the Cruises Sector will achieve the turnaround by the end of the financial year.
The Robinson Clubs, which form part of the core business, is planning to increase the number of club resorts to around 40 in the coming years.
Looking ahead, Earnings Before Interest and Tax or EBITA is expected to grow year-on-year for the full year. The Executive Board of TUI had planned to deliver a growth road map of 6 to 12% for the underlying operating result for financial year 2013/14.
The stock closed at 12.06 euros on Thursday.
Copyright RTT News/dpa-AFX
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