Leisure travel group Thomas Cook Group Plc (TCG.L) Thursday reported a first-quarter loss before tax of GBP 112.0 million. Last year, pro forma loss before tax amounted to GBP 114.5 million. The company further reported robust trading during the Winter 08/09 season, but refrained from providing a clear market picture for its subsequent Summer 09 season, saying it is too early. The company, however, remains confident of meeting fiscal 2009 expectations.
The Thomas Cook Group was formed in June 2007 after the merger of MyTravel Group plc and Thomas Cook AG.
In an Interim Management Statement covering the period from October 1 to December 31, 2008, the company registered a quarterly loss of GBP 81.5 million, while prior-year's pro forma loss was GBP 84.2 million.
The Peterborough-based company, in which Germany's Arcandor AG (ACAGF.PK) holds a majority stake, also recorded a "seasonal" loss from operations before exceptional items at GBP 27.4 million. Pro forma loss from operations before exceptional items in 2007 was GBP 57.3 million.
Revenue from continuing operations amounted to GBP 1.80 billion, whereas pro forma revenues amounted to GBP 1.54 billion last year.
The company stated that trading continues to be "robust" for the Winter 2008-2009 season. Average selling prices for the season are up year-over-year across all markets, with load factors on all departed flights "strong" and at least in line with last year's level.
The UK market is performing strongly, with winter bookings broadly down in line with capacity and departed load factors ahead of last year. Average selling prices are up 7% cumulatively and 10% ahead in the last four weeks.
In Continental Europe, bookings are broadly tracking its 10% planned capacity reductions, with the exception of Northern Europe. Also, average selling prices are 5% above last year.
In Northern Europe, demand remains robust with to date load factors on departed flights at last year's levels of around 99%. Cumulative bookings are currently lagging by 6% year-over-year on a capacity decline of 2%. Also, average selling prices are 1% above last year.
The peak winter charter market remains extremely competitive in its Canadian markets, but the company is gaining from its presence in independent travel following the acquisition of TriWest.
In Airlines Germany, the company has cut back its tour operator flying capacity by 10% from last year.
For the Summer 2009 season, trading to date in the UK has been robust, the company said.
For its other major markets, the company said that it is too early and that clear trends have not yet emerged, despite seeing a strengthening of bookings in the recent weeks.
Regarding its financial position, Thomas Cook Group said, "Our balance sheet and financial position remain robust. The €1.8 billion three-year revolving credit facility we put in place last year matures in May 2011."
Looking ahead, the Group said its Board remains confident that the business will meet its expectations for the current financial year.
On Monday, the company confirmed its intention to acquire Deutsche Lufthansa AG's (DLAKF.PK, DLAKY.PK) 24.9% stake in its German low-cost airline Condor through the exercise of the options granted in 2007. The price agreed under the options at that time is 77.19 million euros, which will be payable in cash at completion.
This decision follows its final withdrawal from a off and on potential three-way combination of its Condor with Lufthansa's Germanwings and TUI Travel Plc's (TT.L) TUIfly, citing it as an unattractive opportunity and also confident on the standalone strength of Condor.
Early in December last year, Thomas Cook reported significantly lower pre-tax profit for fiscal 2008. However, on a pro forma basis, pre-tax profit increased 32%, benefiting from improved revenue and operating margin. Pre-tax profit amounted to GBP 49.5 million, a sharp decline from GBP 190.2 million last year.
TCG.L is currently trading on the LSE at 206.75, up 4.50, or 2.22%, with a volume of 2.98 million shares.
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