Tui's sunny outlook puts Thomas Cook shares in the shade
Friday 27 September 2013
The City dumped shares in Thomas Cook in favour of rival Tui Travel yesterday as the Thomson Holidays owner issued a profits upgrade despite unrest in Egypt.
Cook's recent run higher from near-oblivion in late 2011 came to an abrupt halt as shares sank nearly 7 per cent, down 10.3p to 145.3p.
The company, where chief executive Harriet Green is a year into a turnaround of the business, says its own profits will meet market hopes, but warned of a slow start to the winter booking season.
In contrast, Tui Travel is now looking for operating profit growth of at least 11 per cent this year ahead of its previous 7 per cent to 10 per cent target range, sending the shares up 14p to 370.4p or nearly 4 per cent.
Cook said the warmer weather in Europe and "geopolitical events" including last month's Egyptian coup were behind its slower start to the winter bookings, although holidaymakers are paying out more for their breaks with average selling prices up strongly in all markets.
Tui Travel said firmer summer trading in the UK and Nordic regions was behind its profits upgrade, although it is drastically cutting back on holidays to Egypt following the unrest there. The chief executive Peter Long said the company began to switch its Egyptian holidays into alternative destinations as soon as the trouble started. The company, which is 31 per cent booked for the winter, has trimmed its overall capacity slightly as a result.
Analysts noted the upgrade from Tui but said there may still be value in Thomas Cook despite yesterday's blip. Panmure Gordon's Karl Burns said: "We believe there remains more upside potential at Thomas Cook whilst trading on a lower rating."
Britain First criticised for using actress's memory to draw attention to their 'hate-filled home page'
Thought you'd seen it all after the Jeremy Paxman interview?
Emergency call 'started off dumb, but got pretty serious'
Greatest mystery about the hit BBC1 show is how it continues to be made at all, writes Grace Dent
"History is violent," says the US Army tank commander Don "Wardaddy" Collier
- 1 This 'woman calls police to order pizza' story isn't going where you're expecting
- 2 Axe wielding man shot dead after attacking four New York policemen on busy street
- 3 Watch what happened when food critics were unknowingly served McDonald's
- 4 Jimmy Carr's Oscar Pistorius joke goes a bit too far at the Q Awards
- 5 Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo
Renee Zellweger on plastic surgery rumours: 'I'm living a more fulfilling life and I'm thrilled that perhaps it shows'
This 'woman calls police to order pizza' story isn't going where you're expecting
FCKH8: YouTube reinstates provocative anti-sexism video showing young girls swearing
Axe wielding man shot dead after attacking four New York policemen on busy street
Diwali: What is the festival of lights – and how is it celebrated around the world?
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
iJobs Money & Business
£60000 per annum: Ashdown Group: Compensation and Benefits Manager - Compensat...
£30000 - £35000 Per Annum plus excellent benefits: Clearwater People Solutions...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...