Successful transformation continues with third quarter profit increase
"Our transformation is progressing very well. Today's announcement of a £32 million rise in underlying EBIT, represents our eighth consecutive quarter of increased profits. Every business improved and the UK delivered the most significant contribution, accounting for over three quarters of the total rise, as we start to realise its full potential.
Twenty four months into our transformation, we are confident that our deliberate actions to improve operating efficiency and yield management, digitise our business and develop new exclusive products that build on the strength and trust that our brand represents, will significantly improve Thomas Cook's profitability and growth trajectory. As a stronger and more resilient business, our operational performance remains in line with our expectations for FY14 and we look forward to delivering more value in FY15 and onwards."
Harriet Green, Chief Executive of Thomas Cook
Three months ended 30 June 2014 compared with three months ended 30 June 2013 (underlying):
· All businesses delivered improved results, contributing to a Group EBIT increase of £32m; UK EBIT improved by £27 million
· Strong 30 basis point improvement in gross margin; UK gross margin increased by 150 basis points
· Customer demand for new products encouraging; Summer 14 bookings for concept hotels up 43%
· Additional Wave 1 cost out of £51 million since 31 March 2014; Wave 2 developing well
· Substantial progress digitising the business; improved web penetration and mobile and tablet bookings up 73%
· Business performance for FY14 in line with our expectations, in spite of increased European short haul airline market capacity
· Our one airline integration performing strongly, delivering continued efficiencies
· Stronger late Summer 14 bookings in the UK, Germany and Northern Europe; encouraging bookings for the Winter 14/15 and Summer 15 seasons
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