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Thomas Cook reports sharp jump in net profit during Q3

Devdiscourse News Desk mumbai India
Updated: 05-02-2019 13:34 IST
Thomas Cook reports sharp jump in net profit during Q3

- TCIL standalone PBT increased by 266% from Rs.171 Mn. to Rs. 624 Mn. for the nine months ended Dec 31, 2018, excluding the one-time profit of Rs. 5.3 Bn. on Quess stake sale during Q3 FY18 - TCIL standalone reported a seasonal loss of Rs. 93 Mn. in Q3 FY19 Vs. a PBT of Rs. 5141 Mn. in Q3 FY18 as a result of the one-time Quess OFS profits of Rs. 5.3 Bn., reflected in the last FY results

- Consolidated PBT for Q3 FY19 post deconsolidation of Quess Corp* increased by 42% from Rs. 152 Mn. in Q3 FY18 to Rs. 216 Mn. and by 16% from Rs. 617 Mn. to Rs. 714 Mn. for the 9 month period on a comparable basis

* w.e.f. March 1, 2018 Quess has been deconsolidated. * TCIL's 48.82% stake in Quess Corp accounts for a share of profits of Rs. 72.4 Mn. for the quarter, post adjusting for the amortization of intangibles as a result of the Quess deconsolidation.

Thomas Cook (India) Ltd. (TCIL), India's largest integrated travel services company, today announced its financial results for the Quarter ended December 31, 2018, with a strong performance across its lines of businesses.

Highlights Q3 FY19: TCIL Standalone:

Due to strong trading across businesses, revenue from operations for Q3 FY19 increased by 26% y-o-y from Rs. 3.4 Bn. to Rs. 4.3 Bn.

The Quarter saw strong performances in the core travel businesses due to higher sales from Holiday businesses (29%), MICE (31%) and Corporate Travel (31%); Foreign Exchange revenues increased by 6% despite challenges due to significant volatility of the US Dollar. The Company's E-Business continues to witness strong growth in sales across business lines with an increase of 46% in Outbound, 25% in Domestic, 21% in Forex and 86% in Visas.

Group Consolidated:

On a comparable basis, consolidated revenue from operations for the Quarter increased by 9% y-o-y to from Rs. 14.2 Bn. to Rs. 15.6 Bn. Consolidated PBT of core businesses (Travel & Forex) increased by 106% from Rs. 157 Mn. to Rs. 323 Mn. on a comparable basis for the Quarter.

Strong PBT growth was driven by TCIL standalone, Travel Circle International (Hong Kong) and the Destination Management Specialist (DMS) global network. The DMS Companies turned profitable during the Quarter. Strong forward booking position for the Outbound businesses with a growth of 20%.

Highlights of segment performance:

Travel Services

The revenue from operations from the Travel Businesses increased by 10% in Q3 FY19; EBIT registered growth from Rs. 346 Mn. to Rs. 482 Mn. The DMS companies delivered strong performance and turned profitable, driven primarily by the Middle East and S.E. Asia units.

Foreign Exchange

Continued efforts in the Retail business saw growth in revenue of 19% y-o-y. The Thomas Cook Borderless Prepaid Card (BPC) sales increased by 9% y-o-y. Vacation ownership & resorts business (Sterling Holiday Resorts Limited):

Revenue from Operations grew by 6.5% from Rs. 704 Mn. to Rs. 749 Mn. on a comparable basis, excluding INDAS impact on revenue accounting. Operating EBITDA for Q3 FY 19 grew from Rs. 3.8 Mn. to Rs. 19 Mn., on a comparable basis, excluding the INDAS impact on revenue accounting and sale of land in Q3 FY18.

Reported EBT is a loss of Rs. 106 Mn. in Q3 FY19 vs a loss of Rs. 5 Mn. in Q3 FY 18. Occupancy increased by 4% and Average Room Rent increased by 12% q-o-q.

Management comments:

Commenting on the results, Mr. Madhavan Menon, Group Chairman and Managing Director, Thomas Cook (India) Ltd. said, "The Group had a strong Quarter with impressive delivery across every one of our business verticals, with Foreign Exchange, Outbound, Inbound, Business Travel & MICE all registering strong trading growth. Our E-Business teams have shown remarkable growth and reinvigorate our continued focus on technology & productivity. With the launch of our comprehensive Customer Experience project, we intend to completely transform the way we engage with our customers."

He concluded, "What is worth special mention is the turnaround of our global Destination Management acquisitions that turned profitable this Quarter and continue to witness strong trading."

About Thomas Cook (India) Limited: Set up in 1881, Thomas Cook (India) Ltd. (TCIL) is the leading integrated travel and travel related financial services company in the country offering a broad spectrum of services that include Foreign Exchange, Corporate Travel, MICE, Leisure Travel, Insurance, Visa and Passport services and E-Business. It operates leading B2C and B2B brands including Thomas Cook, SOTC, TCI, SITA, Asian Trails, Allied T Pro, Australian Tours Management, Desert Adventures, Travel Circle International Limited, Private Safaris East & South Africa.

As one of the largest travel service provider networks headquartered in the Asia-Pacific region, The Thomas Cook India Group spans 25 countries across 5 continents, a team of over 8226 and a combined revenue in excess of Rs. 11,411.6 Cr. (over $ 1.75 Bn).

TCIL has been felicitated with The Best Outbound Tour Operator and Leading Company with Cutting Edge Travel Innovation at the Times Travel Awards 2018, Excellence in Domestic Tour Operations at the SATTE Awards 2018, Best Travel Entrepreneur of The Year at TTG Travel Awards 2017, The French Ambassador's Diamond Award for Exemplary Achievements in Visa Insurance- 2015, 2016 & 2017 and the Condé Nast Traveller - Readers' Travel Awards from 2011 to 2016.

CRISIL has removed its rating from 'rating watch with developing implications' and reaffirmed the rating of 'CRISIL AA-' on the long-term bank facilities of TCIL, while reaffirming its 'CRISIL A1+' rating on the short-term bank facilities and short- term debt of the Company.

(With inputs from agencies.)