Thomas Cook profits beat expectations

30th Nov 2009 07:04

Pre-tax profits were ahead of expectations in the year to September 30 at Thomas Cook, as the travel operator increased ticket prices to cope with falling customer numbers.The company posted an adjusted pre-tax profit of £308.2m, down slightly from £309.3m the previous year, as revenues climbed to £9.27bn from £8.75bn.In the UK, average selling prices climbed by 6%, though bookings fell by 11%. In mainland Europe, successful negotiations with airlines and hotels on prices meant that the company could pass on lower input costs to customers without hurting margins. Mainland Europe bookings fell 12% during the period, but the rate has improved in recent weeks to a fall of 8%, Thomas Cook said.The firm also demonstrated the benefits of UK customers choosing to travel further afield than Europe to avoid being hit by the strength of the euro, saying its margins were helped by a focus on medium haul destinations.'We have delivered a strong performance in 2009 achieving full year results ahead of market expectations,' said chief executive Manny Fontenla-Novoa. 'This is particularly pleasing as it comes despite the worldwide recession and the financial impact of the Swine Flu outbreak.'The total dividend per share for the full year climbs to 10.75p from 9.75p the previous year.Fontenla-Novoa said that while the there is still a trend of late bookings, the winter 2009/10 trading position continues to improve, adding that while early in the cycle, bookings for 2009/10 are also in line with expectations.'Recent customer research shows that UK consumers remain intent on taking their holidays abroad next summer and we continue to see strong growth in bookings to medium haul destinations such as Turkey and Egypt,' he said.Thomas Cook also announced the appointment of Paul Hollingworth, most recently chief financial officer of the paper supplier Mondi, as chief financial officer. He replaces Juergen Bueser, who is stepping down due to ill health.