Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Thomas Cook Group    TCG   GB00B1VYCH82


News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Thomas Cook : warns on profit again as Brexit delay brings no respite

share with twitter share with LinkedIn share with facebook
share via e-mail
05/16/2019 | 08:22am EDT
Illustration photo of a Thomas Cook logo

LONDON (Reuters) - British travel group Thomas Cook issued its third profit warning in less than a year on Thursday, sending shares tumbling to a 6-1/2 year low as it said discounting and higher fuel and hotel costs would hurt it during the peak summer season.

Thomas Cook said it had received multiple bids for its airline unit, but this was overshadowed by what Chief Executive Peter Fankhauser called a "difficult trading environment" despite a delay to Britain's exit from the European Union.

"With a lot of holidays left to sell across the market, there are high levels of discounting at this early stage of the season... This is putting further pressure on margins," Fankhauser told reporters, adding that a delay to Brexit from March 29 until October had brought no respite.

"There's no doubt that we have (had) a decline in consumer confidence during this whole Brexit phase in the run-up to March, but we have seen no material change to booking patterns in recent weeks since the delay to Brexit was announced," he added.

Thomas Cook warned that second-half underlying earnings before interest and tax would be below the same period last year and added it had agreed a 300 million pound bank facility to provide more liquidity for the 2019/20 winter season.

Shares fell as much as 23 percent in early deals to their lowest level since November 2012, taking the value of the company below 300 million pounds ($385 million).

By 1152 GMT they had pared losses to trade 17.4 percent lower at 19 pence. The cost of insuring corporate debt jumped, and credit default swap (CDS) markets implied a 96 percent probability of default over the next 5 years, according to Refinitiv data.

The oldest travel company in the world stumbled badly last year 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.

Thomas Cook said the outlook for bookings across Europe was lower than last year. Germany and Sweden were impacted by economic weakness, with the latter also seeing a growing environmental movement against air travel.

The firm said that it saw stronger demand for travel to Turkey, Egypt and Tunisia but hotel costs were rising.


Thomas Cook wants to sell its airline business, which includes German holiday carrier Condor, to cut debt and allow it to invest in its core holiday operations.

Net debt rose to 1.25 billion pounds by the end of March from 886 million a year earlier. The 2022 euro-denominated bonds were down 14.9 cents at 51.5 cents in the euro at their lowest on record, according to Tradeweb.

Adding to pressure on the company, short-selling of its shares has surged recently. The volume of shares on loan has doubled since May 5, and is about nine times its level on Jan 1. Some 12.1% of shares outstanding are on loan.

"They need to jettison the airline, raise some cash and stop the bleed," one trader said.

Thomas Cook said it had received multiple bids for all and part of a business which consists of Condor, as well as British, Scandinavian and Spanish divisions. Its airline unit is faring much better than its tour operator business.

Lufthansa has said it wants to buy Condor with an option to acquire the remaining airlines, while Virgin Atlantic is also reportedly interested in part of the business.

The company said it made an underlying loss before interest and tax of 245 million pounds ($315 million) in the six months to March 31, compared with a loss of 65 million pounds in the same period a year earlier.

Thomas Cook also took an impairment charge of 1.1 billion pounds relating to a 2007 merger with British package-holiday company MyTravel.

(Additional reporting by Helen Reid and Josephine Mason; Writing by Alistair Smout and Georgina Prodhan; Editing by Mark Potter and Keith Weir)

By Alistair Smout

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on THOMAS COOK GROUP
11:20aTHOMAS COOK : Private equity firm Triton bids for Thomas Cook's Nordic operation..
10:30aTHOMAS COOK : Statement re media speculation
06:58aTHOMAS COOK : James Martin launches new in flight menu with Thomas Cook ...
05/20THOMAS COOK : to open first Casa Cook for families this week
05/17LONDON STOCK EXCHANGE : FTSE 100 drops as Just Eat rues Amazon backing rival, ex..
05/17EASYJET : Thomas Cook shares sink as Citi warns stock could hit zero
05/16LONDON STOCK EXCHANGE : Financials, miners lead FTSE 100 rebound, but Burberry, ..
05/16THOMAS COOK : Half Year Results 2019
05/16THOMAS COOK : warns on profit again as Brexit delay brings no respite
05/10Exporters lead FTSE 100 lower after dollar dips on trade hopes
More news
Financials (GBP)
Sales 2019 9 424 M
EBIT 2019 237 M
Net income 2019 28,0 M
Debt 2019 444 M
Yield 2019 -
P/E ratio 2019 3,65
P/E ratio 2020 3,12
EV / Sales 2019 0,07x
EV / Sales 2020 0,06x
Capitalization 188 M
Duration : Period :
Thomas Cook Group Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends THOMAS COOK GROUP
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 11
Average target price 0,37  GBP
Spread / Average Target 199%
EPS Revisions
Peter Fankhauser Group Chief Executive Officer & Director
François Louis Meysman Non-Executive Chairman
Sten Daugaard Chief Financial Officer & Executive Director
Dawn Elizabeth Airey Senior Independent Non-Executive Director
Martine Germaine Verluyten Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
TUI-28.05%5 800
FUJI KYUKO CO., LTD.24.92%1 970