Thomas Cook profit losses flying high at £60m

Thomas Cook off to flyer while Tui struggles

The oldest travel company in the world stumbled badly a year ago when a heatwave in northern Europe deterred holiday makers from booking lucrative last minute deals, leading to two major profit warnings and talk of a need to raise funds.

"We are at an early stage in this review process which will consider all options to enhance value to shareholders and intensify our strategic focus", chief executive Peter Fankhauser said.

A sale, in whole or in part, would enable the company to invest more in its own hotels, improve its digital sales offering and drive further cost savings.

Europe's big two tour operators Thomas Cook and TUI both are both expecting a rough year with the hangover from last year's heatwave still hurting bookings.

"We have been clear that Thomas Cook doesn't need to own an airline outright to be a successful tour operator". It made earnings before financing costs and tax of 129 million GBP previous year, although it reported a loss in the last three months of 2018.

"The past year has been a holiday nightmare for Thomas Cook".

Airline business up for sale?

Citi valued the airline at 630 million pounds.

Analysts said there might not be many bidders to take the whole airline in one go, given turmoil in the industry.

The firm said profits for the year to 30 September will be about €1.17bn, similar to last year.

George's 45 tops Harden's 42 as Thunder eke out win
Less than three minutes into the final frame, the Thunder led 98-92, and the Rockets were left scrambling. Steven Adams had played a big hand in helping his Oklahoma City Thunder side beat the Houston Rockets .

Holiday airline Germania collapsed this week.

Among 9 analysts covering Thomas Cook Group PLC (LON:TCG), 3 have Buy rating, 1 Sell and 5 Hold.

That coincides with the company announcing a "strategic review" of the profitable and growing group airline business.

Tui, whose brands include First Choice, had been expected to update the market on trading next Tuesday.

Tour operator bookings were down 12 percent for the summer.

Thomas Cook said it had made progress in managing its cost base but that bookings for this summer reflected consumer uncertainty, especially in Britain.

Despite the Thomas Cook seeing its revenues increase 1% to £1.66 billion in Q1 2019, the company also saw an increase in its operating losses by £14 million to £60 million, with the prolonged summer heat wave and high prices in the Canaries hurting customer demand for winter sun. It said it had met its bank covenant tests. UBS Group reissued a neutral rating and issued a GBX 34 ($0.44) target price (down previously from GBX 60 ($0.78)) on shares of Thomas Cook Group in a report on Tuesday, December 11th.

'This review, which could result in a sale of the division, is an acknowledgement that the company needs to take radical action to steady its performance and fix a fragile looking balance sheet, ' says AJ Bell's Russ Mould.

Related:

Comments

Latest news

May to promise more Brexit debates in push for more negotiating time
The former Labour leader told Sky News' Sophy Ridge On Sunday: "No one could responsibly propose (a no-deal Brexit). So the uncertainty is not something that will happen in early April, it is something that is with us".

Year-old girl battling terminal cancer sworn in as honorary police officer
A 6-year-old girl who's battling cancer has had her dream come true of being sworn in as a Texas police officer. Abigail said she wanted to become a police officer so she could fight the "bad guys": the cancer in her body.

Skybound bringing classic BioWare to consoles
Skybound Games has announced enhanced editions of classic Dungeons & Dragons RPGS from Beamdog will be released on consoles. Skybound Games was selected as the team to finish The Walking Dead after Telltale Games shuttered their doors.

Suspected DUI driver dances throughout sobriety test in Florida
At one point in the tests, Larson was instructed to walk heel-to-toe across a piece of tape stretched out on the ground. He was later arrested on a charged of DUI and released from jail on his own recognizance, records show.

Colombian vet who smuggled heroin to US in puppies sent to prison
Last May, he was extradited to the United States, where he pleaded guilty to the charges. Three of them died after contracting a virus following the surgeries.

FDA reports new cases of cancer linked to textured breast implants
Once the said cancer occurs in women who have breast implants, it will typically appear in the scar tissue around the implant. So far, 457 women in the USA have been diagnosed with anaplastic large cell lymphoma tied to breast implants.

Super League would have cost big clubs their popularity - Ceferin
While long-standing UEFA-FIFA tensions have continued with these leaders, both first elected in 2016, Ceferin spoke warmly of another ally.

Microsoft Studios rebrands as Xbox Game Studios | Xbox One
If you have yet to subscribe to Xbox Game Pass , you can now get your first month of subscription for just $1 instead of $9.99. This month is set to be one of the best for Game Pass subscribers, with Crackdown 3 and Shadow of the Tomb Raider headlining.

First look at Finland's basic income trial: no major changes
It immediately attracted global interest - but these results have now raised questions about the effectiveness of such schemes. This was compared to self-reporting from the control group using Finland's normal system, said the institute.

Fire service likely to be tackling Ocado blaze for days
Ocado said part of the roof collapsed overnight, but it confirmed no members of the Ocado team or the public were injured. According to the spokesperson, there has been substantial damage to the Andover building and its contents.

Chucky is Back as the First Trailer for 'Child's Play' Reboot Drops
The trailer for the 1989 remake has just dropped and it's completely terrorising. "Ummm...no. Directed by Lars Klevberg, Child's Play opens in the US June 21.

Hackers can compromise your Android phone with a single image file
Just by opening the evil PNG file on a chat app or email, the malware can start running on the device with high-level privileges. Also, no cases have been reported yet of anyone exploiting the vulnerability.

Tributes are pouring in for United Kingdom rapper Cadet, following his death
Rest in Paradise to UK Rap Superstar Callmecadet . "All our love & stength towards the Johnson family and his supporters". Award-winning artist Krept, cousin of the rapper, said he was "broken" following the devastating news.

Recent Match Report - New Zealand vs India 3rd T20I 2019
For New Zealand , Blair Tickner has been given his maiden national cap and he replaces rested Lockie Ferguson in the line-up. Tied at 1-1, India are playing the third and final T20I in hope of claiming the three-match series.

Sample Tetris Effect this weekend as the trial demo returns
Express Online awarded the game a ideal 5-stars, describing it as the best reason to invest in a PlayStation VR headset to date. As an added bonus, anybody who decides to pick up the full release can do so at a reduced price.

Other news