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Trading statements

Thomas Cook margins slip on Spanish competition

27 July 2017 07:57

Travel agent Thomas Cook (TCG) increased its gross profit by 18.8% to £468m in the three months to 30 June, but its margin fell from 21.3% to 20.6% as a result of strong competition in Spain.

The company made a profit from operations of £6m compared with a loss of £25m a year earlier.

This was driven by strong demand for holidays across the group combined with an improved performance in its German airline.

Peter Fankhauser, chief executive of Thomas Cook, said German airline Condor remains on track to return to profitability for the full year.

Group revenue rose by 14% to £2,272m.

Overall group bookings for summer 2017 rose 11% with pricing up 1%, with significant growth to Greece (up 22%), Bulgaria (up 19%), Cyprus (up 14%) and long-haul destinations.

"As we said in May, we are experiencing pressure on margins to Spain in what is a competitive environment, though this is being mitigated by our focus on our own-brand and core hotel offering and supported by strong overall demand for our summer holidays. As a result, we continue to expect our full year underlying operating result to be in line with current market expectations," said Fankhauser.

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