LONDON (dpa-AFX) - Tour operator Thomas Cook Group Plc. (TCKGY.PK, TCG.L) reported Thursday higher underlying earnings before interest and tax or EBIT for the third quarter, despite lower revenues. Shares are currently trading around 5 percent higher in London.
For the quarter, EBIT on a reported basis was loss of 43 million pounds, wider than last year's loss of 30 million pounds.
Underlying EBIT was 33 million pounds, compared to prior year's 1 million pounds as all businesses delivered improved results. UK EBIT improved by 27 million pounds.
Like-for-like EBIT improved 18 million pounds after adjusting for the timing of Easter.
Revenues, meanwhile, declined to 2.22 billion pounds from 2.35 billion pounds a year ago.
The company recorded strong 30 basis point improvement in gross margin, with UK gross margin increasing by 150 basis points.
The company noted that customer demand for new products were encouraging; Summer 14 bookings for concept hotels up 43 percent
The company further said its business performance for fiscal 2014 is in line with expectations, in spite of increased European short haul airline market capacity.
In London, Thomas Cook is currently trading at 128.70 pence, up 6.80 pence or 5.58 percent.
Copyright RTT News/dpa-AFX