Thomas Cook (India) Limited announces Results for the Quarter ended March 31 2022

 Thomas Cook (India) Limited (TCIL)

Thomas Cook (India) Limited (TCIL) India’s leading omnichannel travel service 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 (reducing the effective quarter to 45 days), growing geopolitical concerns and a highly delayed restart of India’s scheduled commercial flights.

Consolidated Operating EBITDA  of Rs. 239 Mn., a 19% growth over Rs. 201 Mn. in Q3 FY22 and Vs. loss of Rs. 361 Mn. in Q4 FY21

Consolidated Income  from Operation for the quarter grew by 46% from Rs. 3,573 Mn. for Q4 FY21 to Rs. 5,221 Mn. In Q4 FY22.

Cash and bank balances at a consolidated level as on 31st March 2022 is at Rs. 6,399 Mn.

TCIL Standalone  Operating EBITDA of Rs. 28 Mn. Vs loss of Rs. 74 Mn. in Q3 FY22 was led by strong sales recovery by Forex 56%; Business Travel: 50% Vs. pre-pandemic levels. The trendcontinued in April ‘22 with Foreign Exchange, Corporate Travel and Domestic Holidays registering a recovery of 62%, 81% and 85% of pre-pandemic sales respectively

   o Income from operation for the quarter grew by 25% from Rs. 636 Mn. in Q4 FY21 to Rs.

794 Mn.; Margins for the Holiday business & Foreign Exchange grew by 326 bps and 29

bps respectively

    o The Company continued its focus on cost prudence with reduced costs for Q4 FY22 at

Rs. 767 Mn., registering a 51% saving from pre-pandemic levels of Q4 FY20

Recovery Trends: Across its retail business segments, the Group is witnessing rapid growth inforward bookings & enquiries.

Sterling Holidays Resorts: EBIT of Rs. 187 Mn. in Q4 FY22, despite the impact of Omicron during the quarter. For FY22 EBIT grew by almost 7 times to Rs. 582 Mn. (from Rs. 77 Mn. in FY21). FY22 Operating EBITDA margin at 37% driven by strong restructuring and cost optimization measures adopted in the previous year and in the current year
    o Resort Revenues grew by 73% YoY; Average Room Rates (ARR) grew by 19% YoY; Occupancy improved to 52% and increased 9% YoY
    o Membership EBITDA grew by 9% YoY based on the lowered cost of acquisition as the company continued its focus on acquiring members
    o Operating Free Cash Flow (OFCF) improved by 25% YoY

DEI (Digiphoto Global):

Income from operations has increased by 153% YoY from Rs. 557 Mn in Q4 FY21 to Rs.1,409 Mn. In Q4 FY22, and has reported profit at EBIT level of Rs. 80 Mn. in Q4 FY22 as against loss of Rs. 133 Mn. in Q4 FY21 and profit of Rs.74 Mn. in Q3 FY22.

      o The quarter saw the launch of several new partnerships like LEGOLAND Korea Resor (South Korea), Andamanda Phuket (Thailand), Attack on Titan - Exhibition (Singapore),The Storm Coaster, Waldorf Astoria (UAE), Bounce Inc. (India) an Aquasplash (DR Congo), Adventure Park (UAE), Sky Walk – KL Tower (Malaysia), Holiday Inn (Maldives) and Trans Studio Surabaya (Indonesia)

     o DEI renewed its imaging operation terms with 10 partners during the quarter.

DMS (Destination Management Service) Business:

The quarter witnessed sales improvement in select DMS entities with further easing of travel restrictions and increased vaccinations.

 Dubai based DMS - Desert Adventures witnessed a healthy Q4 FY22 sales with continuation of

demand in high season and Expo 2020 Dubai

    o Business from UK, LATAM and US markets was encouraging. CIS countries generated good volumes till February; however the instability in Russia and Ukraine resulted in bookings being pushed into June quarter

   o Focus continues to remain on IT initiatives to enhance customer and supplier connectivity, operations automation using AI and robotics process automation

 Private Safaris (East Africa) reported sales were healthy and led by charter business and adhoc

groups. Business from source markets such Germany, United Kingdom, USA and Hungary are

gradually growing as well

 AlliedTPro - DMS entity in US has started witnessing encouraging sales primarily driven by FIT

(Free Independent Travellers); pipeline for enquiries for groups tours have started showcasing an

increasing trend

 Asian Trails Q4 FY22 continued to see very limited business in APAC region due to on-going travel

restrictions/obstacles and partially closed borders in most countries in Asia, however there is

progressive easing of travel restrictions in destinations like Singapore, Thailand and Vietnam

   o The entity is focused on the launch of an online booking B2B platform for multiple service types (Hotels, Transfers, Excursions, Flights and Tours) with an aim to increase the online market turnover and leveraging on scale economies

Partnerships:

With an intent to capture a new set of consumers and enhance its product/business line, Thomas Cook & SOTC have inked key agreements during the quarter:

    o Appointed as Preferred Sales Agents (PSA) for the Indian market by Emirates Holidays, the tour operating arm of Emirates Airlines

   o Thomas Cook collaborated with Mastercard and HDFC Bank for exclusive Expo 2020 Dubai holiday promotion

   o Thomas Cook partnered with Singapore tourism Board, Singapore Airlines and Changi Airport for a joint marketing activity for air-inclusive holidays to Singapore

    o Partnered with Abu Dhabi Tourism and Yas Island for jointly promoting the destination to Indian travellers.

Awards:

o ‘Innovation in Omni-experience’ Award at International Data Corporation’s (IDC) Industry Innovation  Awards 2021 won by Thomas Cook India & SOTC

o Thomas Cook India and Singapore Tourism Board’s virtual game to promote Singapore won a silver at IAMAI India Digital Awards 2022 

o Thomas Cook India and SOTC were honoured at CIO100 Award for digital innovation