|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||5.16 - 5.24|
|52 Week Range||4.39 - 9.79|
|Beta (3Y Monthly)||1.02|
|PE Ratio (TTM)||7.11|
|Forward Dividend & Yield||0.40 (7.39%)|
|1y Target Est||N/A|
(Bloomberg Opinion) -- Thomas Cook Group Plc’s rescue by Fosun Tourism Group moved a step closer on Wednesday as creditors approved a 900 million-pound ($1.1 billion) bailout led by the Chinese investor.The ailing British travel company’s shareholders could be forgiven for thinking they have got the loungers on the shady side of the pool.Under the terms of the deal, Fosun will own 75% of the tour operator and 25% of the airline, in accordance with European Union rules requiring airlines to be majority-owned by European investors. Creditors will own 25% of the tour operator and 75% of the airline.This deal isn’t quite done yet – completion is targeted for October. But it should be sufficient to see Thomas Cook through the low winter season. That should reassure customers and prevent any further slide in trading.What’s more, unlike other attempts to strengthen the company’s finances, this one doesn’t rely on the sale of the airline. The banks and bondholders may not be long-term owners of a majority stake in the group’s airline, but a sale isn’t needed right now to support this recapitalization.The company’s 750 million euros of 6.25% bonds due in 2022 rose as much as 48% on Wednesday, before paring that gain. The shares fell 18% to 5.8 pence.That’s a sign there will be little left for stockholders, who have seen their shares slump by 93% over the past year. Thomas Cook said it intends to maintain a listing, but it acknowledged that the recapitalization may lead to it being de-listed.Shareholders may be able to invest alongside Fosun and lenders. Given that they are likely to see their existing holdings wiped out, it’s hard to see much appetite for more exposure.The recapitalized Thomas Cook will still face competition from Germany’s TUI AG, which has the advantage of also owning hotels and cruise ships, as well as a stronger balance sheet. Thomas Cook must also continue to navigate turbulence from Britain’s exit from the European Union and the knock-on effects on the both sterling and the U.K. consumer.Fosun’s long game seems to have paid off here. It will get control over Thomas Cook’s prize asset, the travel agency, and a minority stake in its airline – without having to pay a premium to shareholders.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Edward Evans at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Norwegian Air will stop flying from Ireland to the United States and Canada from mid-September as the routes had become commercially unviable, the company said on Tuesday. Europe's third-largest budget carrier had to lease replacement planes to service the routes since March due to the global grounding of the Boeing 737 MAX, a more costly option than flying its own planes. Having late last year announced plans to curb its rapid capacity growth and cut costs to stem losses, Norwegian more recently warned that the grounding of the 737 MAX, which makes up 11% of its fleet, may hamper its plans to return to profitability this year..
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Moody's Investors Service ("Moody's") has today downgraded the corporate family rating (CFR) of the British tourism group Thomas Cook Group plc (Thomas Cook or the company) to Ca from Caa2 and its probability of default rating (PDR) to Ca-PD from Caa2-PD. Moody's has also downgraded to Ca from Caa2 the rating on Thomas Cook's EUR 750 million senior unsecured notes due 2022 and downgraded to Ca from Caa2 its EUR 400 million senior unsecured notes due 2023 issued under Thomas Cook Finance 2 plc. The outlook remains negative. The rating action reflects the announcement that the company is in advanced discussions with Fosun Tourism Group and its affiliates (part of Fosun International Limited -- Ba2, stable) and Thomas Cook's core lending banks to respectively inject new funding of GBP750 million and exchange a significant amount of the company's existing debt into equity.
Even the best stock pickers will make plenty of bad investments. And there's no doubt that TUI AG (ETR:TUI1) stock has...
Moody's Investors Service ("Moody's") has today downgraded the corporate family rating (CFR) of the British tourism group Thomas Cook Group plc (Thomas Cook or the company) to Caa2 from B3 and its probability of default rating (PDR) to Caa2-PD from B3-PD. Moody's has also downgraded to Caa2 from B3 the rating on Thomas Cook's EUR 750 million senior unsecured notes due 2022 and downgraded to Caa2 from B3 its EUR 400 million senior unsecured notes due 2023 issued under Thomas Cook Finance 2 plc. The outlook on both entities has changed to negative from rating under review.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of TUI AG and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Moody's Investors Service ("Moody's") has today downgraded the corporate family rating (CFR) of the British tourism group Thomas Cook Group plc (Thomas Cook) to B3 from B2 and its probability of default rating (PDR) to B3-PD from B2-PD. Moody's has also downgraded to B3 from B2 the rating on Thomas Cook's EUR 750 million senior unsecured notes due 2022 and downgraded to B3 from B2 its EUR 400 million senior unsecured notes due 2023 issued under Thomas Cook Finance 2 plc. The ratings are placed under review for further downgrade.
Today we'll look at TUI AG (ETR:TUI1) and reflect on its potential as an investment. Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate p...
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). To...
Slowly but surely European travel giant TUI Group has shifted from a tour operating model to an integrated tourism company. What this means in practice is that instead of simply sourcing and selling vacation packages, it now owns more of the entire travel experience: shops, online, airlines, tours, transfers, activities, hotels, and cruise ships. The […] The post Why TUI Favors an Asset-Heavy Approach appeared first on Skift.
Moody's Investors Service ("Moody's") has today affirmed the Ba2 corporate family rating (CFR), the Ba2-PD probability of default rating (PDR) and the Ba2 senior unsecured rating of the world's leading tourism company TUI AG (TUI). Concurrently, TUI's outlook has been changed to negative from stable.
TUI remains committed to its Boeing 737 MAX orders despite two fatal crashes that have led to the grounding of the plane worldwide and caused the Anglo-German tour operator to issue a profit warning on Friday. TUI said its profit would fall by at least 200 million euros (172.16 million pounds) this year due to the cost of substituting planes, loss of business and lower fuel efficiency - further evidence of the financial impact of the two deadly accidents after warnings from North American airlines. Global airlines and travel groups have had to make contingency plans after 737 MAX planes were taken out of service following an Ethiopian Airlines disaster on March 10 that killed 157 people, five months after a Lion Air crash in Indonesia that killed 189.
Tui was expecting to take delivery of another eight 737 Max aircraft by the end of May. But with doubts growing about the jet’s safety, none of these planes will be flying anywhere for the time being. On Friday, Tui clarified the expense of grounding all of these jets (which account for about 10 percent of its fleet). Expenses related to securing alternative aircraft and extra fuel could reach 300 million euros ($337 million), Tui said.
BERLIN (AP) — European travel operator TUI Group warned Friday that its profits this year could be a quarter lower than anticipated as a result of the grounding of Boeing 737 Max jets.
Lastminute.com Group is looking to take market share away from tour operators across Europe as it puts more effort into growing its package vacation business. In 2018, non-flight products, which includes vacations hotels and cruises, generated more revenue than flight-only sales for the first time in the company’s history. Dynamic packaging — where travelers combine […] The post Lastminute.com Goes After TUI With Vacation Push appeared first on Skift.
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why itRead More...