Thomas Cook India recorded consolidated PBT growth of 37%

Thomas Cook India revealed its financials for Q2 & H1 FY25.

Key highlights (Q2 & H1 FY25):

• Consolidated PBT for Q2 FY25 up 37% to Rs 1,063 million vs Rs 775 million in Q2 FY24 and up 26% to Rs 2,136 million in H1 FY25 vs Rs 1,689 million in H1 FY24
• Total income from operations up 9% at Rs. 20,439 million for Q2 FY25 vs Rs 18,713 million in Q2 FY24 and up 10% to Rs 41,764 million for H1 FY25 vs Rs. 37,937 million in H1 FY24
• EBIT margins in Q2 FY25 for travel services increased from 3.5% to 4.9%; foreign exchange increased from 37.4% to 48.8%, and Sterling Holidays from 24.7% to 25.2%
• Travel businesses in India and overseas and Sterling Holidays lead group’s delivery: Travel services register EBIT growth of 55% and Sterling Holidays registers a 24% EBIT growth in Q2 FY25 vs Q2 FY24
• The group continues to maintain a strong financial position, with cash and bank balances at Rs 18,885 million as of September 30, 2024

Madhavan Menon, Executive Chairman of Thomas Cook (India) Limited, said, “With a consolidated PBT growth of 37% in Q2 FY25 against Q2 FY24, the Thomas Cook India Group has delivered strong results, comparable to a peak-season quarter in a traditionally non-peak quarter for the industry. For H1 FY25 also, the team has delivered a healthy growth of 26% over H2 FY24.

Having achieved our priority of recovery in business volumes, our focus looking ahead, is on ensuring sustainable growth and profitability.”

Travel Services

• Leisure Travel: Growth in sales 11% YoY for Q2 FY25
• MICE: Growth in sales 15% YoY (excluding one-time contracts of Q2 FY24)
• Corporate Travel turnover grew by 13% for Q2 FY25
• India DMS: 25% sales growth YoY for Q2 FY25
• Overseas DMS: 19% sales growth YoY for Q2 FY25

Forex

• Growth in revenue: 8% YoY for Q2 FY25
• Overseas education: 49% growth YoY
• App bookings: 119% growth QoQ
• Card loads increased by 6% YoY
• Two new currencies added to Borderless Prepaid Card – Saudi Riyal and New Zealand Dollar

Leisure hospitality (Sterling Holidays)

• Growth in sales: 22% YoY
• Occupancy at 49% for Q2 FY25
• Guest ratio of non-members grew to 74%
• Sterling inventory crosses 3000 rooms
• New Resorts launched in Q2: Udaipur Aravalli (Rajasthan), Badami (Karnataka), Lonavala (Maharashtra), Pench (MP), and Bokaro (Jharkhand)
• Sterling continues to be a debt-free company with a cash surplus

Digital Imaging Solutions (DEI)

• DEI sales during the quarter were impacted due to muted sales growth in the USA due to the business closure in the region, unusual weather and regional geopolitical tensions reduced footfall in the UAE
• EBIT performance was impacted by lower volumes and overlapping technology costs during WeC platform implementation
• 14 new partnerships signed
• 13 partnerships renewed
• 9 partnerships operationally launched

Business segment-wise Performance:

1. Foreign exchange

-Successful implementation of a range of digital initiatives

2. Travel Services

Corporate Travel

• Managed over 180 groups, including mega groups of over 880-2500 delegates. Key international destinations: Europe, Australia, New Zealand, South East Asia, USA, Georgia, UAE, Turkey, Mauritius; Key domestic destinations: Karnataka, Goa, West Bengal, Rajasthan, Andhra Pradesh, Delhi, Andaman Islands
• Unique inclusions incorporated: 15th August celebrations at Times Square, New York; Paris Olympics – sporting event finals and closing ceremony, exclusive dining at a premium game reserve, 360 degree helicopter tours
• Managed several cruise programs including Icon of the Seas – largest cruise ship in the world

  Leisure travel

India DMS – Travel Corporation (India) Limited: Reported significant growth of 25% YoY for Q2 FY25

• Travel Corporation India Ltd  participated in Kerala Travel Mart in September 2024

Overseas DMS: Sales grew by 19% YoY for Q2 FY25

• Middle East – Desert Adventures: Maintained a stable performance in Q2 FY25. The slowdown in markets like Oman and Jordan had an impact on the overall numbers
• Private Safaris:
  East Africa: Q2 FY25, performance declined YoY, primarily due to the absence of business from FTI in the current period following its insolvency
  South Africa: Delivered steady growth in Q2 FY25 with focus on groups and MICE 
• USA – Allied TPro: Experienced positive growth in Q2 FY25, supported by higher volumes in the Group traveller segments
• Asia Pacific – Asian Trails: Showcased impressive growth in Q2 FY25, with particularly strong results from key markets such as Thailand, Indonesia, Vietnam, Malaysia, and Singapore

3. Leisure hospitality (Sterling Holidays)

• F&B Revenue growth of 18% for Q2 FY25
• Occupancy at 49% for Q2 FY25 with added room inventory, despite being a lean quarter
• ARR at Rs 5414
• Launched “What-A-Trip” curated circuit packages across Sterling resorts, with the option of “Accommodation only” and “Accommodation + Transport”
• Launched “Corporate Plus” – exclusive holiday solutions for Corporate employees with special value offerings and dedicated secure booking platform
• Customer Satisfaction: Based on TripAdvisor ratings, 25 Resorts ranked No 1 in their location; overall 65% of Resorts in Top 5

Digital Imaging Solutions (DEI)

Q2 FY25:

• 13 partnerships renewed in UAE, Maldives, Malaysia, Singapore and Indonesia
• 14 new partnerships signed in UAE, Maldives, Malaysia, Indonesia and China
• 9 partnerships operationally launched in UAE, India, Malaysia, Indonesia and China
• DEI Sales during quarter impacted due to
  • Muted sales growth in USA led by closure of the business in the regionUnusual weather conditions and challenges due to regional geopolitical tensions, led to lower footfalls in key markets of UAE
  • EBIT performance reflects reduced volumes and the added impact of overlapping technology costs during the implementation of the WeC platform

Other key business updates

• Focus on digitalization  

The group’s digital-first strategy saw sustained momentum

• Launched an AI-powered platform to revolutionize travel experiences, offering personalized services that allow users to book custom itineraries with real-time availability of hotels and flights.
• Launched the Thomas Cook Holidays App with an easy interface where customers can book flights, hotels, and holidays
• Enabled international debit/credit card payments, allowing global customers to effortlessly purchase products in their native currencies (USD, Euro, AUD, SGD, etc.) via a secure 3DS platform with Passkey/OTP

  India network expansion

• Leisure travel: Six outlets were opened in Tamil Nadu, Kolkata, Karnataka, Haryana, and Jharkhand
• Madhavan Menon honoured with the ‘Gallery of Legends’ at the India Travel Awards
• Thomas Cook India and SOTC receive honoured at the MaxiMICE Awards 2024
• SOTC Travel wins ‘Asia’s Leading Travel Agency 2024’ at World Travel Awards 2024
• SOTC Travel wins ‘Best Marketing Campaign for Travel/Tourism brand’ at E4M Mavericks 2024