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Thomas Cook (India) Limited (TCIL) announces strong results for Q4 FY22 despite Omicron wave and delayed reopening of Indian skies

Author: Theodore Koumelis / Date: Tue, 05/24/2022 - 10:20
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Reports Consolidated Operating EBITDA of Rs. 239 Mn. in Q4 FY22 Vs loss of Rs. 361 Mn. in Q4 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 (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.
  • At a consolidated level the Company continued its focus on cost prudence with reduced costs for Q4 FY22 at Rs. 2754 Mn., registered 37% saving at pre-pandemic levels in Q4 FY20
  • 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 trend continued in April ‘22 with Foreign Exchange, Corporate Travel and Domestic Holidays registering a recovery of 62%, 81% and 85% of pre-pandemic sales respectively
    • 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
    • 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
  • The Company’s sustained focus on technology delivered end-to-end digitization across its businesses, including B2C and B2B self-booking/servicing tools and dynamic customization, vendor management and automated accounting/payment solutions. The digital acceleration serves to further augment the Company’s omnichannel model towards an enriched customer experience; cost and efficiency benefits
  • Recovery Trends: Across its retail business segments, the Group is witnessing rapid growth in forward 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
    • Resort Revenues grew by 73% YoY; Average Room Rates (ARR) grew by 19% YoY; Occupancy improved to 52% and increased 9% YoY 
    • Membership EBITDA grew by 9% YoY based on the lowered cost of acquisition as the company continued its focus on acquiring members
    • 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. 
  • The quarter saw the launch of several  new partnerships like LEGOLAND Korea Resort (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)
  • DEI renewed its imaging operation terms with 10 partners during the quarter
Business Recovery Highlights (Q4 FY22 Vs Q4 FY21): 
  • Domestic Holidays: 43% growth in sales Vs. Q4 FY21 
  • Foreign Exchange: Strong turnover growth of 80% compared to Q4 FY21 
  • Corporate Travel: 155%growth in turnover Vs. Q4 FY21 
  • MICE: 36% growth in sales Vs. Q4 FY21 

Mr. Madhavan Menon, Managing Director, 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 27th, our teams have delivered a commendable performance this quarter with an operating EBITDA of Rs. 239 Mn. The Group’s strong performance was led by Foreign Exchange, Business Travel, Sterling Holidays, DEI & Desert Adventures. With other markets opening up, we expect the other Group companies to stage quick recoveries too.

Our focus on sustainable cost management balanced with a thrust on technology over the past three years is delivering results in the form of speed, productivity and improved customer experience. Recovery is accelerating continually, with our Foreign Exchange, Corporate Travel and Domestic Holidays businesses registering an estimated sales recovery of 57%, 81% and 99% of pre pandemic levels as of end May 2022 and strong pipelines for the coming quarter and beyond.”

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
    • 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 
    • 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
    • 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: 

  • Appointed as Preferred Sales Agents (PSA) for the Indian market by Emirates Holidays, the tour operating arm of Emirates Airlines
  • Thomas Cook collaborated with Mastercard and HDFC Bank for exclusive Expo 2020 Dubai holiday promotion
  • Thomas Cook partnered with Singapore tourism Board, Singapore Airlines and Changi Airport for a joint marketing activity for air-inclusive holidays to Singapore
  • Partnered with Abu Dhabi Tourism and Yas Island for jointly promoting the destination to Indian travellers
Awards:
  • ‘Innovation in Omni-experience’ Award at 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 a silver at IAMAI India Digital Awards 2022 
  • Thomas Cook India and SOTC were honoured at CIO100 Award for digital innovation
     

ABOUT THE AUTHOR

Theodore Koumelis

Co-Founder & Managing Director

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.