Thomas Cook enters ‘red numbers’ and loses 183 million in his last fiscal year

Closes the year with a 3% drop in revenues in Spain due to lower demand at the destination

Thomas Cook Group lost 163 million pounds sterling (183.2 million euros) in its last fiscal year, ended on September 30, compared to the gains of nine million (10 million euros) of the previous one and after three consecutive positive years .

The British tour operator, which lowered its annual forecasts for the third time this week, had already warned that its adjusted net operating result (Ebit) would be 250 million pounds sterling (almost 281 million euros), 58 million pounds (65 million euros) less.

The company has decided to suspend the dividend charged to the annual accounts after the net losses recorded during the full year, which includes a charge of 153 million pounds sterling (171.8 million euros) derived from the costs of transformation of the group, among others.

The group increased its turnover by 6.4% in the fiscal year, to 9,584 million pounds (10,764 million euros), while the profit from operations amounted to 97 million pounds sterling (108.9 million euros) , which is 57.2% less.

The CEO of the company, Peter Fankhauser, has again stressed that the year 2018 was “disappointing” for Thomas Cook in which the business of the tour operator in the United Kingdom was affected after four years of growth in profits in this market, which adds a more competitive environment for holidays in Spain.

The operator figures in a cut of 88 million pounds sterling (almost 99 million euros) the negative impact on its margins due to poor performance in the United Kingdom, which contrasts with the strong increase in profits of the group’s airlines, with some earnings of 35 million pounds sterling (39 million euros), despite the costs of interrupting flights in Europe.

The growth of its sales is explained by the return of tourists to destinations such as Turkey and Tunisia and Egypt, in North Africa, with a 44% increase in turnover, to 545 million pounds sterling (612 million euros) . It also highlights the demand to Greece that remained strong for the fifth consecutive year, and that contrasts with the fall of 3% registered in Spain, reflecting the displacement of travelers to other destinations.