Thomas Cook reports 32 percent rise in full year pre-tax profits
Published: 02 Dec 2008
Thomas Cook has shared that its underlying pre-tax profit increased by 32 percent in the year to September to 309.3 million pounds ($459 million) as it benefited from increased revenue and an improved operating margin.
Adjusted profit before tax rose 32 percent on revenue up 11.8 percent to £8.81bn, although excluding the impact of translation and acquisitions, revenue was flat year on year.
Capacity cuts, cost savings, fuel and currency hedging and operational flexibility, together with the merger synergies, provide strong foundations for the current year.
"Whilst it is still early in the booking cycle for most of our markets, current trading is in line with our expectations," said chief executive Manny Fontenla-Novoa. "Recent research and the high load factors we are currently experiencing give us confidence that consumers remain intent on taking their holidays."
The group has increased its merger synergy target to 215 million pounds ($319 million) by 2010, from 155 million before. It was created last year from the tie-up of Arcandor's travel unit and the UK's MyTravel.
It said the integration of the two businesses had been "highly successful" with management, commercial, and technology having been integrated into one platform for over a year. For summer 2009, the group has sold 24 percent of capacity in the UK so far, broadly in line with last year's level.
The group said it is confident of prospects for 2008/9 and is targeting an operating profit of 480 million pounds for 2009/10.
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