Thomas Cook has reported an increase in third quarter profit and “stronger late summer 2014 bookings in the UK, Germany and Northern Europe”.
The Thomas Cook Group reported a fall in revenue year on year for the three months to June from £2.35 billion to £2.22 million.
But it posted an ‘underlying’ profit of £33 million for the quarter against £1 million a year ago – although the group showed a statutory loss of £43 million for the period.
Chief executive Harriet Green said: “Every business improved and the UK delivered the most significant contribution, accounting for over three quarters of the total rise.”
Underlying profit for the 12 months to June rose to £306 million from £252 million a year earlier.
Cook reported an operating profit margin on its UK business of 3.1% for the last 12 months and said it was confident of hitting a margin of 3.5% for the full year to September.
The company reported “signs of discretionary consumer spending on holidays on the increase” and said: “We are confident that our new products, digital development, enhanced yield management and lean operational efficiencies will enable us to more than deliver.”
Cook reported summer 2014 bookings for its differentiated ‘Concept’ hotels up 43% on a year ago and for its ‘Partnership’ hotels up 10%, along with “improved online and mobile bookings”.
It posted £51 million cost savings and profit improvements in the quarter.
The company noted: “Full year 2014 sales growth has been inhibited by external events, [but] we remain confident our new product strategy will enable us to deliver an improved revenue performance in 2015.”
Green said: “Our transformation is progressing very well. Today’s announcement represents our eighth consecutive quarter of increased profits.
“Twenty four months into our transformation, we are confident our actions to improve operating efficiency and yield management, digitise our business and develop new exclusive products that build on the strength and trust that our brand represents, will significantly improve Thomas Cook’s profitability and growth trajectory.
“Our operational performance remains in line with our expectations.”
Sourced from Travel Weekly