Thomas Cook announces 15% higher growth in this Quarter
Thomas Cook (India), the leading travel and financial services company has reported a net profit of Rupees 86 million in the quarter ended July 2005.
The Company's post tax Results are 15% higher than the same quarter last year. This has been attributed to excellent traffic in the outbound sector between April and July '05.
Cumulatively, the company is still slightly behind the period November 2003 to July 2004. Efforts are being made to bridge this gap and the future looks promising because there is an upward swing in the travel and travel related service business.
Cost control efforts by the company are paying off and are clearly discernible in this quarter's results. Cost optimisation is being practiced in the area of advertising where the focus has been shifted to 'advertising productivity' rather than quantum.
Mr. Heuberg, representing Thomas Cook AG, stated that they are very pleased with the results of the Indian operation.
Business Segment Information:
The financial services results were lower than last year's of the same period, primarily because of lower foreign exchange availability in the country due to lower prevalent interest rates in comparison to interest rates in the US that have increased over the last few quarters. The profitability is likely to improve with the upward movement of such rates of interest and possible change in Rupee-USD parity.
As we all know Tsunami was a freak natural disaster causing devastation in many countries. Unfortunately, post-Tsunami Sri Lanka is still limping as tourist arrivals have not returned to normalcy but are expected to improve soon.
From the CEO's Desk:
"What is promising at a global level, is that we have finally obtained permission from the Singapore and Thai governments to start Thomas Cook operations in these two countries, and we hope to have these important tourist territories operational by the end of this year.
On the Leisure Travel front, we have had a great season this summer vacation. The number of travellers on group tours to Europe through Thomas Cook rose by over 30%, extremely heartening news for the Travel department as well as for the brand. On the other hand, we have been able to bring down prices for our customers. These lower prices, combined with commission cuts, have obviously eaten a bit into our bottom line. In the long run, however, we are quite confident that the increasing numbers will far outweigh the dampeners."