01.02.2007
- Post-tax profit of 171 million euro return on
- equity reaches 25.5 per cent
- price leadership asserted, additional market share gained
- increased results anticipated for 2006/2007
Oberursel, 1 February 2007. Thomas Cook AG, one of Europe's leading travel operators, achieved a record result in the financial year 2005/2006 with pre-tax profits (EBT) of 205.8 million euro and an annual net profit of 170.8 million euro. "After successful restructuring and strategic repositioning, we once again have a very solid foundation", said Manny Fontenla-Novoa, Chairman of the Management Board of Thomas Cook AG. "The corporation has a very good financial standing and the right steps for the future have been taken. Thanks to the impending sale to KarstadtQuelle we now have a clear perspective in terms of growth and the future."
Sales growth above industry average
Turnover of Thomas Cook AG increased by 1.6 per cent from 7.661 billion euro to 7.780 billion euro in the financial year 2005/2006. Minus divestments, the increase in growth was in fact 3.5 per cent. This positive development was achieved despite the Europe-wide stagnation of the tourism industry. Thomas Cook thus achieved increases in market shares in almost all European markets. The number of passengers transported increased by 366,000 to 13.61 million, an increase of 2.8 per cent.
EBITA improved by 18.3 per cent
The gross profit margin reduced slightly by 1.8 percentage points to 22.2 per cent in the past financial year. This decline is due mainly to the dramatic increase in the price of oil. The result before interest, taxes on earnings, and impairments (EBITA) improved by 35.3 million euro or 18.3 percent to 228.5 million. Results before taxes on earnings (EBT) increased even more significantly by 65.8 million euro to 205.8 million euro.
Net balance for the first time
"The lower interest burden resulting from the significant decrease in debt has a positive effect on the EBTA," said Ludger Heuberg, Director of Finance on the Board of Thomas Cook AG. For the first time in its history, Thomas Cook has a positive balance of 55.9 million euro on the financial statement date instead of net indebtedness. "That confirms the sustainability of our reorganisation," continued Ludger Heuberg.
All segments in the black
Since 1 May 2006, the Thomas Cook Group has been divided into three segments: Continental Europe, Great Britain and Airlines Germany. Each of these three operative segments succeeded in contributing to the positive overall Group result. Continental Europe improved its EBT by 25.5 million euro to 93 million euro with a major role being played by the early-booking strategy successfully implemented in the German key sales market which was well received by customers and significantly reduced the number of last-minute bookings. Great Britain was also able to increase its EBT by 14.7 million euro to 127.5 million euro although the British travel market recorded a 5.4% decline during the past financial year, mainly because of the football world championships and the record-breaking heat wave. Despite the exorbitant increase in the price of kerosene, Condor, the Group-owned airline, recorded a positive EBT of 18.0 million euro.
Investments in personnel
In the financial year under review the number of employees decreased by 3,531 to 19,775 on annual average. These lay-offs are largely results of disinvestments - primarily the sale of Thomas Cook India and Aldiana. After a two-year restructuring period, Thomas Cook AG again raised its expenditure to safeguard availability of junior staff and for training purposes. The number of trainees has increased and a group of junior staff was selected for a promotion programme.
Further growth expected
Experts are expecting economic growth of 1.7 per cent in Europe for 2007 - following last year's 2.7 per cent. Thomas Cook believes that further increases in turnover and results will be possible again this year, and that additional market shares will be acquired. The disinvestment programme, most of which has already been implemented, is to be continued and the strategic alignment focussing on the core business to be advanced further. The current year is marked by a particular concentration on developing a Group-wide IT-production platform which is going to enter its implementation phase in Great Britain in autumn. "The difficult economic environment in the tourism industry will promote consolidation within the sector", said Chairman of the Board of Directors Fontenla-Novoa. "Once again, Thomas Cook is in a position to play an active role in this process."
Press contact:
KarstadtQuelle AG
Head of Corporate Communication
Jörg Howe
Phone: +49 (0)201/727-25 38
Fax: +49 (0)201/727-37 09
Email: joerg.howe@karstadtquelle.com
Thomas Cook AG
Corporate Communication/ Press Office
Phone: + 64 (0)6171/65-1700
Fax: + 64 (0)6171/65-1060
Email:
konzernkommunikation@thomascookag.com