TUI (TUI1) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 revenue of €5.8bn, up 9–10% year-over-year, with underlying EBIT rising to €232m (+37%), and all business segments contributing to growth.

• Eighth consecutive quarter of profit growth, reflecting strong operational performance and successful transformation initiatives.

• Strategic transformation program progressing well, focusing on operational excellence, platform business expansion, and mid-term EBIT CAGR of 7–10%.

• Net debt improved to €2.1bn, supported by positive free cash flow.

• FY24 guidance reconfirmed: underlying EBIT to increase by at least 25% and revenue by at least 10% year-over-year.

Financial highlights

• Q3 2024 revenue: €5,787m (+9.5% vs Q3 2023); Q3 underlying EBIT: €231.9m (+36.8%).

• Q3 underlying EBITDA reached €447m, up from €367m in Q3 FY23; 9M underlying EBITDA at €671m.

• Net income from continuing operations in Q3 was €104m, with basic EPS doubled to €0.10.

• Free cash flow after dividends for Q3 was €1.2bn, mainly driven by EBITDA and strong working capital inflow.

• Net investments higher year-to-date due to RIU joint venture and project phasing.

Outlook and guidance

• FY24 revenue expected to increase by at least 10% and underlying EBIT by at least 25%.

• Mid-term ambition: underlying EBIT CAGR of 7–10%, net leverage strongly below 1.0x, and return to pre-pandemic credit rating.

• Bookings for summer 2024 up 6% and average selling price up 3%; early Winter 24/25 bookings also promising.

• Confident in future growth, especially from platform rollout and international expansion.

• Sustainability initiatives ongoing, including solar power plants in Turkey and new low-emission cruise ships.