Thomas Cook Says Holiday Sales Should Hold Up
Thomas Cook, the travel firm, said on Tuesday that their profits for the full year fell by 9%, despite higher revenue due to the increase in costs on both their finances and operations.
In the last year, ending September 30th, Thomas Cook reported a £64 million net profit in comparison to the £70.3 million of the year before. However, the company’s revenue increased by 11.8% to £8.8 billion while their operational profits increased to £160.6 million from £73 million.
The firm’s net profit took a toll from finance costs, as well as an increase in personnel and operating expenses. Thomas Cook said that they anticipate to achieve a £185 million synergy per year by the end of next year, which is up from their £155 million prior target. The shares of the company were up to 169 pence by 4.2%.
Many Fontenla-Novoa, the Chief Executive of Thomas Cook, said that trading is still in line with their expectations. The high load factors they have been experiencing, along with recent research, has given them confidence that travelers will stay intent on taking a holiday, he continued.
The company also said that they believe their strong position financially, along with the raised contingency measures and synergy savings put into place, they will be able to sustain a leading performance in the market throughout 2009.
Andrew Fitchie, an analyst at Collins Stewart, stated that the strategy of Thomas Cook to cut back capacity and raise prices seems to be working. Even though he says he is cautious about the outlook of next year, Fitchie raised the rating of the company to hold.
Learn more about this travel firm at: www.thomascook.com
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