Reports consolidated operating EBITDA of Rs. 239 million. at Q4 FY22 Vs loss of Rs. 361 million. in the fourth quarter of FY21.

Mumbai, India – Thomas Cook (India) Limited (TCIL) India’s leading omnichannel travel services company today announced its financial results for the quarter ended March 31, 2022 reflecting a strong rebound with sustained improvement in profitability despite the Omicron/third wave of Covid-19 (bringing the effective quarter to 45 days), growing geopolitical concerns and a much-delayed restart of scheduled commercial flights from India.

  • Consolidated operating EBITDA of Rs. 239 Mn., a growth of 19% from Rs. 201 million. in Q3 FY22 and Vs. loss of Rs. 361 million. in the fourth quarter of FY21
  • Consolidated operating income for the quarter increased by 46% from Rs. 3,573 million. for Q4 FY21 at Rs. 5,221 million. In the fourth quarter of FY22
  • Cash and bank balances at consolidated level as of March 31, 2022 are Rs. 6,399 million.
  • At a consolidated level, the company continued to focus on cost prudence with reduced costs for the fourth quarter of FY22 at Rs. 2,754 Mn., recorded 37% savings at pre-pandemic levels in Q4 FY20
  • TCIL Standalone operating EBITDA of Rs. 28 million. Vs loss of Rs. 74 million. in Q3 FY22 was led by a strong recovery in sales by Forex 56%; Business travel: 50% vs. pre-pandemic levels. The trend continued on April 22, with foreign exchange, business travel and domestic holidays seeing a 62%, 81% and 85% recovery in pre-pandemic sales respectively.
    • Operating income for the quarter increased by 25% from Rs. 636 million. at Q4 FY21 at Rs. 794 Mn.; Holiday & Foreign Exchange margins increased by 326 bps and 29 bps respectively
    • The company continued to focus on cost prudence with reduced costs for the fourth quarter of FY22 to Rs. 767 Mn., registering a saving of 51% compared to pre-pandemic levels in Q4 FY20
  • The company’s continued focus on technology has enabled end-to-end digitalization across its entire business, including B2C and B2B self-service booking/servicing tools and dynamic personalization solutions, vendor management and automated accounting/payment. Digital acceleration serves to further augment the company’s omnichannel model towards an enriched customer experience; cost and efficiency benefits
  • Recovery trends: Across all of its retail business segments, the group is experiencing rapid growth in reservations and advance inquiries
  • Sterling Holidays Resorts: EBIT of Rs. 187 million. in Q4 FY22, despite the impact of Omicron in the quarter. For FY22, EBIT increased almost 7x to Rs. 582 million. (from Rs. 77 Mn. in FY21). Operating EBITDA margin for the year 22 to 37% thanks to the strong restructuring and cost optimization measures adopted in the previous year and the current year
    • Resort revenue increased 73% year-over-year; Average room rates (ARR) increased 19% year-on-year; Occupancy increased to 52% and increased 9% year-over-year
    • Membership EBITDA increased 9% year-over-year based on lower cost of acquisition as company continues to focus on Membership acquisition
    • Operating Free Cash Flow (OFCF) improved by 25% YoY
DEI (Digiphoto Global):
  • Operating income increased by 153% year-on-year from Rs. 557 Mn in Q4 FY21 to Rs. 1,409 million. In the fourth quarter of FY22, and reported an EBIT level profit of Rs. 80 million. in Q4 FY22 compared to the loss of Rs. 133 million. in Q4 FY21 and profit of Rs.74 Mn. in the third quarter of fiscal year 22.
  • The quarter saw the launch of several new partnerships such as LEGOLAND Korea Resort (South Korea), Andamanda Phuket (Thailand), Attack on Titan – Exhibition (Singapore), The Storm Coaster, Waldorf Astoria (UAE), Bounce Inc. (India ) and Aquasplash (DR Congo), Adventure Park (UAE), Sky Walk – KL Tower (Malaysia), Holiday Inn (Maldives) and Trans Studio Surabaya (Indonesia)
  • DEI renewed its imaging operation terms with 10 partners during the quarter
Business Resumption Highlights (Q4 FY22 vs Q4 FY21):
  • National holidays: 43% sales growth Vs. Q4 FY21
  • Currency: Strong revenue growth of 80% vs. Q4 FY21
  • Business travel: 155% revenue growth Vs. Q4 FY21
  • MICE: 36% sales growth Vs. Q4 FY21

Mr. Madhavan Menon, Managing Director of Thomas Cook (India) Limited, said: “Despite the Omicron wave reducing the quarter to 45 days and the reopening of Indian skies for scheduled international flights only on March 27, our teams achieved a commendable performance this quarter. with an operating EBITDA of Rs. 239 million. The Group’s strong performance was driven by currency, business travel, Sterling Holidays, DEI and Desert Adventures. As other markets open up, we expect other Group companies to experience a rapid recovery as well.

Our focus on sustainable cost management balanced with a push on technology over the past three years is delivering results in the form of speed, productivity and improved customer experience. The recovery is continuously accelerating, with our foreign exchange, corporate travel and domestic holiday businesses seeing an estimated recovery in sales of 57%, 81% and 99% of pre-pandemic levels at the end of May 2022 and of strong pipelines for the coming quarter and beyond.

DMS (Destination Management Service) activity:

The quarter was marked by improved sales in some DMS entities with further easing of travel restrictions and increased vaccinations.

  • Dubai-based DMS – Desert Adventures reported strong sales in the fourth quarter of FY22 with continued demand in high season and at Expo 2020 Dubai
    • Activity in the UK, Latin America and US markets was encouraging. The CIS countries generated good volumes until February; however, instability in Russia and Ukraine resulted in the postponement of bookings to the June quarter
    • Continued focus on IT initiatives to improve customer and supplier connectivity, AI-enabled operations automation and robotic process automation
  • Private Safaris (East Africa) reported healthy sales driven by charter business and ad hoc groups. Business from source markets such as Germany, UK, USA and Hungary is also growing gradually
  • AlliedTPro – The DMS entity in the United States has started to record encouraging sales mainly driven by FIT (Free Independent Travellers); the group tour inquiry pipeline has started to trend upwards
  • Asian Trails Q4 FY22 continued to see very limited activity in the APAC region due to ongoing travel restrictions/hurdles and partially closed borders in most Asian countries, but there is a gradual easing of travel restrictions. travel to destinations like Singapore, Thailand and Vietnam
    • The entity is focused on launching a B2B platform for online reservations for several types of services (hotels, transfers, excursions, flights and tours) with the aim of increasing the turnover of the online market and take advantage of economies of scale.
Partnerships:

In an effort to capture a new group of consumers and enhance its product/business range, Thomas Cook and SOTC signed key agreements during the quarter:

  • Appointed as Preferred Sales Agents (PSAs) for the Indian market by Emirates Holidays, the tour operator arm of Emirates Airlines
  • Thomas Cook has collaborated with Mastercard and HDFC Bank for an exclusive Expo 2020 Dubai holiday promotion
  • Thomas Cook has partnered with the Singapore Tourism Board, Singapore Airlines and Changi Airport for a joint marketing activity for all-inclusive holidays in Singapore
  • Partnership with Abu Dhabi Tourism and Yas Island to jointly promote the destination to Indian travelers
Awards:
  • ‘Innovation in Omni-experience’ award at the International Data Corporation’s (IDC) Industry Innovation Awards 2021 won by Thomas Cook India & SOTC
  • Thomas Cook India and Singapore Tourism Board’s Virtual Game to Promote Singapore Won Silver Medal at IAMAI India Digital Awards 2022
  • Thomas Cook India and SOTC have been recognized in the CIO100 award for digital innovation