Thomas Cook India delivers a robust all round performance for Q2 & H1 FY25
Key Highlights (Q2 & H1 FY25):
• Consolidated PBT for Q2 FY25 up 37% to Rs. 1,063 Mn Vs Rs. 775 Mn in Q2 FY24 and up 26% to Rs. 2,136 Mn in H1 FY25 Vs Rs. 1,689 Mn in H1 FY24
• Total Income from Operations up 9% at Rs. 20,439 Mn for Q2 FY25 Vs Rs. 18,713 Mn in Q2 FY24 and up 10% to Rs. 41,764 Mn for H1 FY25 Vs Rs. 37,937 Mn in H1 FY24
• EBIT margins in Q2 FY25 for Travel Services increases from 3.5% to 4.9%; Foreign Exchange increases from 37.4% to 48.8% and Sterling Holidays from 24.7% to 25.2%
• Travel Businesses in India & overseas and Sterling Holidays lead Group’s delivery – Travel Services registers EBIT growth of 55% & Sterling Holidays registers a 24% EBIT growth in Q2 FY25 Vs Q2 FY24
• The Group continues to maintain a strong financial position, with Cash & Bank balances at Rs. 18,885 Mn as of September 30, 2024
Mr. Madhavan Menon, Executive Chairman, 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 first priority of recovery in business volumes, our focus looking ahead, is on ensuring sustainable growth and profitability.”
All figures exclude MTM gains arising from the Company’s shares in Quess Corp Limited, held through its Employee Benefit Trust
Business Segment-wise Performance:
1. Foreign Exchange
• Successful implementation of a range of digital initiatives:
o Video KYC enabled bookings grew to 1350+ for the quarter; 85% success rate
o Forex via WhatsApp: 2000 interactions daily; 5x growth in leads; 370+ sales bookings for Q2 FY25
o Forex app: 119% growth in bookings QoQ
• Introduced two new currencies to the Borderless multi-currency Prepaid card – Saudi Riyal, New Zealand Dollar
2. Travel Services
• Corporate Travel
o Q2 FY25: Turnover grew by 13% YoY
o 6 large corporate accounts acquired
o Adoption moved to 58% adoption by clients on the corporate self-booking tool
o Non-Air and Car business has grown over 49% and 23% YoY respectively
o Productivity efficiency has increased by 14% YoY Q2 FY25
o Integration of global platforms ensuring seamless back-end data integration
• Meetings-Incentives-Conferences-Exhibitions (MICE)
o 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; Domestic: Karnataka, Goa, West Bengal, Rajasthan, Andhra Pradesh, Delhi, Andaman Islands
o Unique inclusions incorporated: 15th August celebrations at Times Square, New York; Paris Olympics – sporting event finals and closing ceremony; exclusive dinning at a premium game reserve; 360 degree helicopter tours
o Managed several cruise programs including Icon of the Seas – largest cruise ship in the world
• Leisure Travel
o Q2 FY25: Sales growth of 11% YoY
o Inked a strategic MOU with Malaysia Aviation Group to boost travel experiences for Indian travellers
o Partnered with Cricket Australia for the Border-Gavaskar Trophy 2024/25, leveraging the growing trend of sports tourism
o Launched unique tours for monsoons, experiential travel, festive tourism
• Destination Management Services (DMS) Network
India DMS – Travel Corporation (India) Limited: Reported significant growth of 25% YoY for Q2 FY25
o Travel Corporation India Ltd participated in Kerala Travel Mart in September 2024
Overseas DMS: Sales grew by 19% YoY for Q2 FY25
o Middle East – Desert Adventures: Maintained a stable performance in Q2 FY25. The slowdown in markets like Oman and Jordan had impact on the overall numbers
o Private Safaris:
o East Africa: Q2 FY25, performance declined YoY, primarily due to the absence of business from FTI in the current period following its insolvency
o South Africa: Delivered steady growth in Q2 FY25 with focus on Groups and MICE
o USA – Allied TPro: Experienced positive growth in Q2 FY25, supported by higher volumes in the Group traveller segments
o 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
4. 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
o Muted sales growth in USA led by closure of the business in the region
o Unusual weather conditions and challenges due to regional geopolitical tensions, led to lower footfalls in key market of UAE
o 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
o 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.
o Launched the Thomas Cook Holidays App with an easy-interface where customers can book flight, hotels and holidays
o 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
o Leisure Travel: 6 outlets were opened in Tamil Nadu, Kolkata, Karnataka, Haryana and Jharkhand
• Awards and Partnerships
o Madhavan Menon honoured with the ‘Gallery of Legends’ at India Travel Awards
o Thomas Cook India and SOTC receive honoured at the MaxiMICE Awards 2024
o SOTC Travel wins ‘Asia’s Leading Travel Agency 2024’ at World Travel Awards 2024
o SOTC Travel wins ‘Best Marketing Campaign for Travel/Tourism brand’ at E4M Mavericks 2024