Thomas Cook halves debts
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Thomas Cook has nearly halved its debts to GBP452 million up to June 2013 compared to last year.
The travel company has cut its debts from GBP1,099m as of 30 June 2012 with GBP1.6bn capital refinancing and a third quarter underlying earnings before taxes (EBIT) up to a profit of GBP1m.
This is an increase of GBP46m year-on-year, while its like-for-like EBIT for the nine months up to 30 June was up GBP104m to post an overall loss of GBP197m.
With thomascook.com listed as the most visible holiday website on Google UK in a recent Greenlight report, the travel company has benefited from its digital turnaround strategy as well as an increase in concept hotel bookings.
Bookings for these concept hotels for summer 2013 are up 38%, in line with targets to increase this number of passengers by 25%. This will be helped along by 46 new concept hotels that Thomas Cook aims to open in time for the end of its 2014 financial year.
The company has sold around 85% of its summer 2013 capacity and is said to not currently seeing a significant impact from unrest in Egypt and Turkey. UK capacity has been reduced 3% but average selling prices are up more than 5%.
“We have continued to make significant progress transforming Thomas Cook. The success of our recent GBP1.6 billion capital refinancing has enabled yet more focus on the transformation, which continues apace,” said Harriet Green, group chief executive at Thomas Cook.
“Since the announcement of our half year results eleven weeks ago, we have again delivered improved operating results, stronger margins, further cost out benefits, improved cash conversion and a number of exciting new web and other product developments. However, this is just the start. We see huge potential in Thomas Cook and its realisation remains our overriding priority. We look forward to delivering much more for all our stakeholders,” she added.
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