Thomas Cook plc (LON:TCG) reported a 1 percent rise in revenue in the three months to December, but remained “cautious” about the uncertain climate.
Revenue group rose from £1.62 billion, up from £1.41 billion a year previously, alongside a “seasonal” underlying loss of £49 million. Revenue was boosted by a strong demand for its holiday options in Greece, Spain and its long-haul locations. In addition, its online division saw strong growth, rising up over 20 percent in the UK and double that figure in Germany.
Chief executive Peter Fankhauser said: “Bookings to Greece are currently up by over 40%, while demand for destinations such as Cyprus, Bulgaria, Portugal and Croatia is also strong. These positive trends are making up for continued weak demand for Turkey.”
“We have delivered a solid performance for the first three months in line with our expectations, against a backdrop of continued uncertainty.” he continued.
The company revealed that its winter season for the year ending 2017 was around 82 percent sold and thus matching expectations. Moreover, its summer 2017 season was 32 percent sold, with a 9 percent rise in bookings year-on-year.
Despite the modest growth reported for the year, Mr Fankhauser maintained that the group remained tentative warning about its economic outlook for the year.
He said:
“We remain cautious about the rest of the year, given the uncertain political and economic outlook.
The company has been hit by continued consumer anxiety about various terrorist attacks across the globe, which has hit the leisure and holiday industry in particular. However, the group did maintain that increased demand for its Greece holidays mitigated any fall in Turkey’s popularity amid terror attacks.
“It’s still relatively early in the selling cycle for summer holidays, but based on current trading, and supported by further financial benefits from implementing our strategy, we expect our full-year operating results to be in line with current market expectations.”
Amid news of the reporting, Thomas Cook plc shares plunged 7.12 percent as of 09.56AM (GMT).