Thomas Cook expect to achieve not less than €200 million merger synergies

Published: 21 Nov 2007

The group expects to achieve not less than €200m merger synergies, which is an increase of €60m on its earlier prediction.

The group also said operating profit is to exceed €620m in 2009/10, which implies underlying profit of more than €800m. It also indicated that group revenue is to grow to approximately €13 billion in 2009/10. Revenue from financial services to grow from 215 million in 2005/06 to around 370 million in 2009/10. Revenue from independent travel to grow from 2.2 billion in 2005/06 to 3.3 billion in 2009/10.

Manny Fontenla-Novoa, Joint Chief Executive, said: "Through the merger of Thomas Cook and MyTravel we have transformed both our business and the industry in general. In the last five months we have almost completed the integration, announced the merger of our German airline, Condor, with Air Berlin, and taken steps to align capacity with demand. In addition, we are announcing today that we expect to achieve not less than 200 million merger synergies - an increase of 60 million on our earlier prediction."

"Building on this strong foundation we are now entering a further new and exciting phase of our development which will focus on leveraging the strength of our mainstream business, developing a market leading independent travel business, driving further growth through our unique travel-related financial services capability and taking advantage of the significant opportunities that emerging markets represent for us."

As part of the Group's strategy of increasing its controlled distribution, one of its objectives will be to increase its targeted online sales to 35% in 2009-10, the company said.

The company expects to recommend dividends per share for each year in the range of 40-50% of earnings per share, paying one third of an annual dividend as an interim and two-thirds as a final dividend. A final dividend for this year will be proposed, which will represent two thirds of the dividend that would have been paid in respect of a full year, equal to 40% of earnings for that year.

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