p15 City Dec4 2/12/09 20:54 Page 15
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Cook: We will put
Thomas Cook
Full-year results to
squeeze on hotels
September 30, 2009
GROUP
Pre-tax profit: £308.2 million
Rob Gill.
financial services in the (-0.4% year-on-year)
THOMAS COOK aims UK. These could include Operating profit: £414.9 million (+13.4%)
to put the squeeze introducing its own Profit margin: 4.5% (4.2% last year)
on accommodation ATM machines, which Revenue: £9.3 billion (+5.9%)
suppliers by capitalising would dispense pounds
on its strength as and euros without
the second-largest charging commission,
operator in Europe. and prepaid foreign UK
Announcing Cook’s currency cards. Operating profit: £162.2 million
full-year results this Other moves unveiled (+13.1% year-on-year)
week, chief executive include a restructuring Profit margin: 5.2% (4.6% last year)
Manny Fontenla-Novoa of Cook’s independent Revenue: £3.1 billion (flat)
(pictured) said one of business and an expan-
the main goals for 2010 sion of internet-based
was to cut accommoda- operations.
tion costs by 5-7%. Operating profit for Cook’s UK WINTER 2009-10
During the 12 months to UK business grew by 13% to Average selling price: +6%
the end of September 2009, £162.2 million and margin Bookings to date: -11%
the company spent about 33% increased from 4.6% to 5.2%. Bookings (last four weeks): -1%
(£3.1 billion) of its total group Cook said the increased prof- Overall capacity: -9%
revenue on accommodation. itability was down to a focus on Holidays left to sell: 50%
Fontenla-Novoa said the operator was medium-haul destinations and all-inclusive
looking at a series of initiatives to increase resorts as well as capacity flexibility and growth
revenue, profits and margins. in share of foreign exchange sales.
“These include centralising accommodation Fontenla-Novoa added: “Looking ahead, the UK SUMMER 2010
purchasing in order to leverage the scale of late booking trend is still evident but our winter Average selling price (last four weeks):
our group buying power in mainstream travel,” 2009-10 trading position continues to improve +2% year-on-year
he said. and trend towards our planned capacity. Bookings (last four weeks): +14%
Pushing down hotel costs will be one of “Although it is still early in the cycle, bookings Holidays left to sell: 80%
the main tasks for Pete Constanti in his for summer 2010 are also in line with our
newly-created role of chief executive for group expectations.
destination management. “Recent customer research shows UK con-
Constanti, who was previously chief executive sumers remain intent on taking their holidays
BRAND PERFORMANCE.
for mainstream travel UK, will have responsibility abroad next summer, and we continue to see
for hotel purchasing and agent relationships. strong growth in bookings to medium-haul
Results reflect a
Cook revealed it also planned to expand destinations such as Turkey and Egypt.”
challenging year
MANAGEMENT.
STRONG performances from operators such as
Middleton returns – 17 years on
Gold Medal, Hotels4U and Medhotels have helped
Thomas Cook’s UK business over the last year.
Upmarket operator Elegant Resorts, which
was purchased by Thomas Cook in April 2008,
THOMAS Cook Group has made a series of Salomon Brothers International, and chairman also produced a “solid performance, despite
management changes including reappointing of several small listed and private companies. difficult market conditions”.
former chief executive Peter Middleton. Cook has also appointed Paul Hollingworth as The company said it was continuing to benefit
Middleton, who headed Cook from 1987 to group chief financial officer. He takes up his po- from savings through the merger with MyTravel.
1992, returned to the company this week as an sition in January 2010, replacing Juergen Bueser But these benefits had been offset by higher
independent non-executive director. who has stepped down after a period of ill health. fuel prices and the weak pound which affected
Since leaving Cook 17 years ago, Middleton has accommodation costs. It also estimated that
been chief executive at Lloyd’s of London and ■ Operators news, p29 swine flu hit UK sales by £8 million.
04.12.2009 15
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