Nov 27, 2018

Thomas Cook issues second profit warning in two months

Holiday group Thomas Cook issued its second profit warning in two months on Tuesday, saying full-year underlying earnings would be hit by writedowns, additional costs and "Particularly disappointing" late bookings demand. In a trading update ahead of its full financial results, Thomas Cook said underling earnings before interest and tax for the year to September 30 would be £250m, £58m lower than last year on a like-for-like basis and its second downgrade in as many months. On Tuesday Thomas Cook revised this figure further, saying ebit would take an additional £30m hit as a result of writedowns on receivables and additional costs. Another £14m related to write down on receivables, as Thomas Cook took the view that money owed to it from various hotels would now not be repaid. Thomas Cook said its priorities for 2019 were to "Address performance in our UK tour operator business", drive operational efficiencies and cost savings and "Improve selling of higher-margin own-brand hotels" and holidays.

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