The British travel company Thomas Cook is in debt, three times its market value
oldest tour operator is looking for a place in the shade. Since September, when it announced the first of two consecutive profit warnings, Thomas Cook’s share price has fallen by nearly two-thirds. The British company, which sells flights, hotel rooms and tours to 20m holiday-makers, is saddled with £1.4bn in debt, three times its market value.Markit, a data provider, estimates that 8% of its stock has been borrowed—typically a signal that short-sellers are circling.
Easter brought some solace, if only because Thomas Cook’s low valuation has made it an increasingly tempting takeover target. Its shares rose by 18% on April 23rd, after Sky News reported that Fosun, a Chinese conglomerate that is its largest shareholder, and two buy-out firms were interested in parts or the whole of the company.Thomas Cook’s woes reflect broader malaise in the industry. On March 29th, its Anglo-German arch-rival and the world’s biggest tourism group, issued a profit warning.
Some of the problems are cyclical. Last year’s torrid summer convinced many Europeans to seek sunshine at home. The weak pound has dampened traditionally peripatetic Britons’ enthusiasm for travel. The grounding by authorities around the world of Boeing’s 737But the companies must also grapple with structural changes. From 2015 to 2018 profits barely budged at. Thomas Cook’s fell by 20%. Millennials prefer independent travel to package tours.
To repay its debts Thomas Cook wants to sell its airline business, itself pummelled by competition from low-cost carriers. It has some worthy airport slots but is on the block at the same time as other failing airlines, notes Richard Clarke of Bernstein, a research firm. It wants to bring more retail online and focus on higher-margin premium services. At leasthas more hotels and a thriving cruise business, which generates a third of its profits. But its prospects hardly look sunny.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Thomas Cook approached by potential bidders: Sky NewsThomas Cook has been tentatively approached about a takeover of its tour operati...
Leer más »
Thomas Cook shares rise on report of possible takeoverThomas Cook had put its airline business up for sale and closed stores this year, following a heat-wave in northern Europe last summer.
Leer más »
Thomas Cook survival relies on risky breakupThe indebted UK tour operator’s shares jumped on reports it could be bought by Chinese group Fosun or private equity. Either would likely see the group sell its airline, making it hard to get a good price. And the rump that remains would be even more challenged.
Leer más »
Thomas Cook shares, bonds rally on report of suitors circlingShares and bonds in Thomas Cook Group Plc rallied on Tuesday after a media repor...
Leer más »
Apple CEO Tim Cook: Europe is leading the U.S. when it comes to tech regulationApple CEO Tim Cook said that the tech industry very much needs to be regulated but he's 'not confident' in U.S. lawmakers to do it right.
Leer más »
Amazon.com: Watch Teach Dave to Cook | Prime VideoThe Post’s new series “Teach Dave to Cook” is now streaming on Amazon Video: Follow along with beginner Dave and food expert Mary Beth and learn how to make steak, croutons, chocolate mousse and more.
Leer más »
Apple CEO Tim Cook had an impact on the company before he was even hiredApple CEO Tim Cook impacted the company's operations practices when he was still in the interview process, according to a new book about his career.
Leer más »
Joe Biden spoke with Anita Hill, accuser of Supreme Court Justice Thomas, aide saysFormer vice president Joe Biden, who launched a bid for the Democratic nomination for president, has spoken with Anita Hill, the woman whose treatment during Justice Clarence Thomas's Senate confirmation hearings Biden has said he regrets.
Leer más »
Anita Hill not 'satisfied' after Joe Biden expressed regret over Clarence Thomas hearings, report saysFormer Vice President Joe Biden spoke with Anita Hill and apologized for the way she was treated during the Supreme Court hearings on Clarence Thomas. But she tells the New York Times that she isn't 'satisfied' with the conversation.
Leer más »