Thomas Cook shares take a dive as United Kingdom profits fall 40%

24 November, 2017, 01:29 | Author: Roderick Gutierrez
  • GETTY    
   PRICE HIKE Holidays to Spain cost more for Brits than last year

Travel giant Thomas Cook yesterday revealed a 40 per cent plunge in United Kingdom earnings as it suffered amid "challenging" trading and a hit from the weak pound.

Travel giant Thomas Cook has reported a 12 per cent increase in pre-tax profits for the 2017 year to September, though underlying earnings in the United Kingdom business fell 34 per cent amid rising hotel prices, the value of pound and intense competition in Spain. It also has to pay to look after 10,000 passengers affected by Hurricane Irma in the US.

"We have taken a robust approach towards illness claims including improving our handling and assessment processes, and taking legal action against fraudsters - as a result, the claim rate has declined dramatically".

Group revenue rose nine per cent on a like-for-like basis to £9bn, with underlying earnings before interest and tax rising £24m to £330m.

Bookings for summer holidays in Greece are significantly up, United Kingdom tour operator Thomas Cook announced on Tuesday.

The FTSE 250 firm said it was taking action to restore profitability after underlying United Kingdom earnings dived 40% - or by £34m - to £52m in its financial year to 30 September, despite a 3% increase in revenue.

Thomas Cook Group said it made good financial progress during its fiscal full year, with demand for Greece and long-haul destinations balancing out a more competitive market in Spain.

GETTY    
     LESS CHANGE Brits are forking out more money to go on holiday to Spain
GETTY LESS CHANGE Brits are forking out more money to go on holiday to Spain

Fankhauser said: "Looking to the year ahead, we can see real momentum in our Group Airline, and expect our Continental Europe and Northern Europe tour operator businesses to continue their good performance".

Chief executive Peter Fankhauser said 2017 was a "milestone year in the strategic development of Thomas Cook". Its UK division saw margins drop after four years of growth.

Thomas Cook is also focusing on destinations such as Turkey and Egypt as they begin to regain popularity.

Based on current trading, Thomas Cook said it is well-positioned to achieve a full-year operating result in line with market expectations.

There was better news for Thomas Cook in its airline division and in its other European markets.

"With destinations in the eastern Mediterranean out of favour following political unrest, holiday providers are dashing headlong into Spanish resorts", commented Nicholas Hyett, equity analyst at Hargreaves Lansdown. "The increased competition is a double whammy for Thomas Cook, pushing up the cost of beds while piling the pressure on pricing".


Recommended:

  • Bruno Mars wins 7 at American Music Awards

    Bruno Mars wins 7 at American Music Awards

    The two pop singers traded vocals on the song while images from recent natural disasters played on screens behind them. Rihanna is also nominated for favourite female soul/R&B artist, where she will compete with Beyonce and Kehlani.
    Sounds detected in undersea area where Argentine sub went missing

    Sounds detected in undersea area where Argentine sub went missing

    Still, boats searching for the submarine were heading toward the flares to investigate further, navy spokesman Enrique Balbi said. The submarine was originally scheduled to arrive Sunday in Mar del Plata, a navy base about 250 miles southeast of Buenos Aires.
    Paxton Lynch named Broncos starter

    Paxton Lynch named Broncos starter

    But, I talked to the trainers and the coaches, and like I said, they've done a good job so far and I feel great. He averaged 5.99 yards per attempt and amassed two touchdowns and an interception to go with a 1-1 record.
  • CBS Employees Accuse Charlie Rose Of Sexual Misconduct

    CBS Employees Accuse Charlie Rose Of Sexual Misconduct

    One of the unnamed women in the Post report said that Rose had her work from his house while she was an intern on his PBS show. A former intern says Charlie Rose made her watch an explicit sex scene from a movie when she dropped mail off at his home.
    Arsenal star rules out January exit for Alexis and Ozil

    Arsenal star rules out January exit for Alexis and Ozil

    Who will come out on top? NACHO MONREAL is confident contract rebels Mesut Ozil and Alexis Sanchez will stay at Arsenal until the end of the season.
    Violence Against Transgender People Has Gotten Worse

    Violence Against Transgender People Has Gotten Worse

    A report from previous year by the group Transgender Europe found that over 2,000 trans people have been killed since 2008. HRC has recorded more than 100 trans victims of fatal violence since 2013, based on media and police reports.
  • Holiday Travel Conditions Looking Good in St. Louis

    Holiday Travel Conditions Looking Good in St. Louis

    They say at its peak, drivers on some interstates and highways could see delays of almost 300 percent over the optimal trip. Sundquist advises passengers to arrive at least 75 minutes before their scheduled departure.
    Iranian national charged for HBO hack

    Iranian national charged for HBO hack

    Included was an image of " Game of Thrones " Night King character, leader of an army of zombies, with the words, "Good luck HBO ". Mr Kim declined to say if HBO had offered or paid any ransom.
    Scotland Yard Is Investigating Kevin Spacey for a Second Allegation

    Scotland Yard Is Investigating Kevin Spacey for a Second Allegation

    The London theatre released the conclusion following its investigation into allegations concerning the House of Cards star. Scotland Yard are investigating a second sexual assault allegation against Kevin Spacey dating back to 2005.
  • Is Rainbow Six Siege Getting A Co-Op Zombies Mode?

    Is Rainbow Six Siege Getting A Co-Op Zombies Mode?

    Year 3 is set to begin with Operation Chimera , which introduces two brand new operators as well as the Outbreak event. Year 3-as with Year 1 and Year 2-will consist of four seasons, each including two new Operators.
    Terror designation a way to hike North Korea pressure

    Terror designation a way to hike North Korea pressure

    North Korea was on the terrorism blacklist for two decades after the 1987 bombing of a South Korean airliner killed 115 people. Neither Mr Trump nor the State Department specified which acts of terrorism and assassination the North had supported.
    Science just proved that owning a dog makes you live longer

    Science just proved that owning a dog makes you live longer

    So basically, dogs are great because they keep you happy and keep you active, which keep your ticker ticking along nicely. People living alone have the highest risk of developing a heart disease or having a stroke.


Popular

Willian admits pundits will question Champions League penalty vs Qarabag
For sure, the second half against Roma was bad. "It is very positive for us in a game that I knew very well wouldn't be easy". Cesc Fabregas celebrates after putting Chelsea 3-0 up from the penalty spot against Qarabag in the Champions League .

Real Madrid Shift Focus From David De Gea To Thibaut Courtois
The Belgium No 1's deal expires at the end of next season, and he rejected the offer of a new one in the summer. At Chelsea he has won the League Cup (2015) and two Premier League titles (2015 and 2017 ).

Padmavati row: After Madhya Pradesh, Gujarat bans the film
The British Board of Film Classification (BBFC), meanwhile, passed the film without cuts. Padmavati to keep its original release date for United Kingdom audience.

Brazil star Robinho sentenced to nine years in prison for sexual assault
Robinho was also accused of sexual assault in London in 2009 while at Manchester City but was cleared of any wrongdoing. After a brief stay at Chinese team, Guangzhou Evergrande, he joined Atletico Mineiro previous year .

Quick Take: Air China Grounds North Korea Route
Air China has cancelled flights between Beijing and Pyongyang due to low demand, closing one of the few routes into North Korea. Trump's recent decision, however, seemed to have only increased the months-long tensions between the two sides.

Trump tweets 'MAGA' at liberal columnist who criticized him
In Ball, media pundits say, Trump may have found a worthy opponent - somebody with a big enough personality and financial independence to take him on.

Jude Law's 'Captain Marvel' Character Revealed
A photo was recently revealed of him as Albus Dumbledore in Fantastic Beasts: The Crimes of Grindelwald , and now this news. Should a deal place, he'll play the film's male lead alongside Larson and, presumably, Star Wars alum Ben Mendelsohn .

Congress can't endure Narendra Modi: Smriti Irani's response to 'chaiwala' tweet
The Congress leader's barb backfired and BJP under PM Modi registered a landslide victory in the 2014 Lok Sabha elections. This is not the first time the Congress has taken reference to the prime minister's beginning as a tea vendor.

Jordan Fisher Takes Home Dancing With The Stars' Mirrorball Trophy
But they recovered to get ideal scores for four dances over two days to end the show. "We're not getting judged [or] scored". Pictured l-r: Frankie Muniz , Witney Carson , Lindsay Arnold , Jordan Fisher , Lindsey Stirling and Mark Ballas .

Rio Ferdinand reacts to Man United's 1-0 loss at Basel
Suddenly unable to find any rhythm, United rode their luck again as Renato Steffen's powerful effort was narrowly off-target. Rio Ferdinand has blamed Manchester United's loss to FC Basel on Wednesday night on failing to take first-half chances.