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Investments / Markets
British tour operator Thomas Cook said Tuesday it lowered its annual profit forecast again due to the heat wave in Europe this summer, which was heavily sanctioned by the market.
The group issued its second profit warning in the space of two months, he said in a statement giving first financial information on its 2017-2018 fiscal year (completed end of September).
Its full annual results will be released as scheduled on Thursday.
Thomas Cook explains that his operating profit excluding exceptional items will be 250 million pounds, 30 million pounds less than he had anticipated so far.
He had already lowered his financial ambitions at the end of September, which had earned him a heavy penalty from investors on the London Stock Exchange.
Sign of a gloomy financial situation, the group has also decided to suspend the payment of a dividend for 2018.
Result, around 08:30 GMT, the title of Thomas Cook collapsed from 30.08% to 33.94 pence in a stable market. Since the beginning of the year, it has lost nearly three quarters of its value.
"A disappointing year"
"2018 has been a disappointing year for Thomas Cook," says managing director Peter Fankhauser, "because of the prolonged warm period during the key summer period", even though his annual turnover has increased by 6 % on a comparable basis to £ 9.6 billion.
The hot summer in Europe caused potential tourists to stay at home rather than travel to the usual sunny destinations, reducing sales by Thomas Cook.
The tour operator evokes a particularly difficult market in the United Kingdom with the implementation of many promotions in an already very competitive sector especially for holidays in Spain.
He also notes the impact of the summer heat wave on bookings for this winter, which are down 3% year-on-year.
Concerning its objectives for the next fiscal year 2018-2019, Thomas Cook says he can record an increase in its operating profit excluding exceptional item.
"We need to learn from 2018 and enter the new year by looking for where to make a difference for our customers in our holiday offer," says Fankhauser.
In particular, he insists on the need to improve performance in the UK market, without giving further details on his strategy.
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