Sun seekers lift profits at Thomas Cook
HOLIDAY firm Thomas Cook yesterday beat annual profits forecasts after reporting consumers were still determined to take a summer holiday despite the downturn and swine flu fears.
The holiday operator said that people were tending to book later, but winter bookings and summer 2010 was in line with expectations. Despite the country’s current debt concerns, holidays in Dubai will not be discounted, said the group’s chief executive Manny Fontenla-Novoa.
He added that “medium haul” destinations, like Turkey and Egypt, had seen a surge in popularity for guaranteed summer sunshine.
Thomas Cook reported underlying pre-tax profits for the year to 30 September of £308.2m – defying City forecasts of a three per cent fall.
The group, which carries around 6m British holidaymakers a year, said revenues lifted by six per cent to £9.3bn from £8.7bn the year before.
Fontenla-Novoa said: “We have delivered a strong performance in 2009 achieving full year results ahead of market expectations.”
Thomas Cook merged with the former Airtours business MyTravel in 2007 and said cost savings from the deal had been a higher-than- expected £215m.
But analysts were also cheered by the group’s cautious optimism and a 10.3 per cent dividend hike to 10.75p. Astaire securities analyst Mark Brumby said: “Thomas Cook is now the master of its own destiny and is doing pretty much everything right.”