RE: Let's all play Fosun17 Jul 2019 14:32
jj you are cherry picking overall tour op bookings are down 9% so revenue will be roughly down the same, yes prices slightly up but crucially no mention about margins, as Fixed Costs still remain so fewer sales will mean lower variable costs but not fixed ones, therefore more pressure on margins.
Group airline bookings are overall 3% (3rd party may have increased, but this is a small % and a consequence of the tour ops not needing them so they are available to sell elsewhere)
TC itself says 'uncertain consumer environment' and 'intense competition' both of these are bad
As a result they expect the EBIT to behind last year for 2nd half year and remember they made a loss of £163m for FY end 2018
Market expectations were not for the business to perform better than last year as last year was meant't to be adversely affected by the heatwave
You need to look for words such as 'uncertain' and 'intense competition' it means they are finding it tougher than expected