DEATHWATCH - Thomas Cook shares nosedive

12 July 2011

A curiosity, tomorrow

You have to wonder about any company that pins its hopes on a marketing campaign fronted by Jamie Redknapp, but there we are; Thomas Cook has lost over a quarter of its share price this morning after releasing a profit warning to shareholders.

The warning states that the holiday firm will struggle to deliver dividends because of UK consumers spending less in the current economic climate, and because of political unrest abroad in destinations such as Tunisia, Egypt and Morocco. However, Thomas Cook will also be initiating "a fundamental strategic and operational review" of its UK business because of poor trading.

The profit warning wiped 28% from the company's shares when trading began this morning, and the price has yet to recover.

[BBC] thanks to avid Bitterwallet reader Mike

TOPICS:   Travel


  • Marketing W.
    Last time I went into Thomas Cook, the dozy girl behind the desk thought Spain was in Majorca and her second question was if I had "enough insurance". I booked the holiday myself.
  • The T.
    This is just scaremongering. There is no deathwatch for Thomas Cook. Shares go up and down all the time and it doesn't mean a company's demise is imminent. The actual figures are that year on year profits (not turnover) are down from £380m to £320m. Still a healthy figure, but just below expectations. Do you know how many businesses Thomas Cook own or how many countries they operate in? No, of course none of you do, or you'd see through this non-story. It's not just the high street shops.
  • dvdj
    The Truth speaks... err the truth. Huge company and the corporate big wigs obviously just expected unrealistic targets the previous year.
  • bob
    not at all shocked by this. the prices they want to charge for a holiday are crazy. same as thomson.
  • The T.
    dvdj also speaks the truth! And Bob, you'll find that even a big travel business like Thomas Cook has small margins. It's the airlines and hotels that are charging the crazy prices and as an agent, TC just passes them on as they are set by those businesses, especially the airlines with all the taxes they have to add onto the base fare amount.
    Not suprised, stopped using them years ago, leg room on their planes is a disgrace, hotels were shite, reps were useless dumb asses. The whole organistation needs restructuring with people who know what they are doing and as far as using Jamie Redknapp as their corporate face !!!!!!!!!!!!! says it all dosent it.

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