November 27, 2019 / 9:45 AM / 3 months ago

On The Beach books $32.8 million in costs related to Thomas Cook refunds

(Reuters) - Holiday package provider On The Beach (OTB) on Wednesday said it booked a one-off charge of 25.6 million pounds ($32.84 million) due to refunds for clients affected by the collapse of Thomas Cook.

OTB had earlier this year flagged it would book a one-off charge from costs associated with helping its customers arrange alternate travel plans after the collapse of the world’s oldest travel firm.

However, investor concerns were later soothed in October when OTB said it saw Thomas Cook’s liquidation as an opportunity to gain additional market share.

Chief Executive Simon Cooper marked the first quarter of fiscal 2020 as the company’s “quietest trading period”, as a fallout to the Thomas Cook collapse.

“This has created a significant short-term lack of seat capacity as well as an unprecedented opportunity in the medium term to gain share,” Cooper said.

On The Beach full-year adjusted profit before tax, that excludes one-off expenses, came in at 34.6 million pounds, 3% higher than last year.

($1 = 0.7794 pounds)

Reporting by Katarzyna Zajaczkowska and Rushil Dutta in Bengaluru; Editing by Aditya Soni and Shailesh Kuber

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