LONDON (dpa-AFX) - Tour operator Thomas Cook Group Plc. (TCKGY.PK, TCG.L) Tuesday said it expects operational performance in fiscal 2014 to show a material improvement over last year, despite recent downturn in consumer confidence in Germany. The shares fell more than 6 percent in the morning trade in London.
In its pre-close trading update, the company said it anticipates underlying EBIT for the fiscal to be between 315 million pounds and 335 million pounds, a growth of 39 to 48 percent. For fiscal 2013, the company had posted underlying EBIT of 263 million pounds.
Thomas Cook experienced strong late Summer 14 bookings in all of its major source markets, with higher demand for its Concept hotels. Winter bookings for 14/15 were also strong in the UK, with a sale of 29 percent. Average selling prices also increased from last year.
Harriet Green, Group chief executive officer stated, 'The successful transformation of our company continues....Our achievements over the last 24 months demonstrate the impact of a transformed team capable of delivering significantly greater shareholder value in the future.'
Further, the firm expects its online package bookings to accelerate from the current level of 38 percent, and anticipates achieving more than 50 percent in fiscal 2015.
According to the company, Concept hotels Summer 14 bookings climbed 43 percent, and Partnership hotel bookings are up 11 percent for the Summer season. Consequently, it expect to achieve its new product revenue target of more than 300 million pounds in fiscal 2014, and more than 700 million pounds in fiscal 2015.
Bookings in Germany have recently moderated due to a less optimistic consumer climate due to geopolitical events, and the German business experienced weaker margins in the fourth quarter.
Thomas Cook expects its net debt to improve further to about 300 million pounds to 350 million pounds by the end of this financial year, as its working capital movements normalize consistent with its previous guidance.
The company is scheduled to announce its full-year results on November 26.
TCG.L fell 6.15 percent to trade at 122 pence, on 5.80 million shares.
Copyright RTT News/dpa-AFX