24th Sep 2018 08:00
LONDON (Alliance News) - Thomas Cook Group PLC on Monday lowered its annual profit forecast as it saw lower average selling prices due to a "highly competitive" trading environment and hot weather over the summer.
Also, the FTSE 250-listed tour operator has named Sten Daugaard as chief financial officer on an interim basis to replace Bill Scott, who will leave at the end of November.
Thomas Cook said it intends to begin a search for a long-term CFO with immediate effect.
"I would like to thank Bill for the contribution he has made over the last six years at Thomas Cook," said Chairman Frank Meysman. "I am pleased that we have secured someone of Sten's considerable experience to assume this important role while we find a long-term successor to Bill."
In a separate statement, Thomas Cook reported a good strategic progress through the year-to-date. Overall bookings for its Summer 2018 period were up 12% on a year-on-year basis, driven by the return in popularity of holidays to Turkey, Egypt, Tunisia and Greece.
However, the company noted that its average selling prices were 5% lower, due to a highly competitive trading environment, as a consequence of a sustained period of hot weather across Europe this summer.
For the Winter 2018/2019 period, bookings are currently 2% behind last year, but average selling prices up 1%. The company said the UK has made a good start, with demand ahead of last year, but this has been offset by a slow start in the Nordics and Continental Europe which are experiencing some knock-on impact from the hot summer weather.
Looking forward, Thomas Cook said it expects to deliver full-year operating profit of GBP280 million due to the weak trading. For the year to the end of September 2017, the company reported operating profit of GBP330 million.
"Our recent trading performance is clearly disappointing," said Chief Executive Peter Fankhauser.
"Many customers spent June and July enjoying the sunshine at home and put off booking their holidays abroad, leading to even tougher competition and higher than usual levels of discounting in the 'lates' market of August and September," explained Fankhauser.
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