Kuoni: higher turnover and improved operating earnings in the first nine months of 2012 Donnerstag, 08. November 2012 - 06:49
Kuoni: higher turnover and improved operating earnings in the first nine months of 2012
Kuoni Group’s turnover increased 17.5% to CHF 4 476 million in the first nine months of 2012 (prior year: CHF 3 810 million). Earnings before interest, taxes and amortisation (EBITA)1 increased by 19.9% to CHF 86.6 million (prior year: CHF 72.2 million). Earnings before interest and taxes (EBIT) were CHF 29.9 million (prior year: CHF 45.8 million). This figure was reduced by impairments on intangible assets totalling CHF 27.2 million associated with the decision to withdraw from loss-making European tour operator activities. The improvement of EBITA was due mainly to higher demand in the businesses within the Global Travel Services (GTS) Division. Particularly its groups travel business posted a strong increase in earnings, reflecting the Kuoni Group’s significant exposure to Asian growth markets.
With the economic situation still difficult in Europe, the overall market environment is expected to remain challenging.
Highlights in the first nine months of 2012
- Kuoni Group’s turnover increased by 17.5% to CHF 4 476 million (prior year: CHF 3 810 million). Organic turnover growth was 3.0%.
- EBITA increased to CHF 86.6 million (prior year: CHF 72.2 million) by 19.9%.
- EBIT was CHF 29.9 million (prior year: CHF 45.8 million) including impairments of CHF 27.2 million associated with the decision to withdraw from loss-making European tour operator activities. The year-on-year operational improvement was 24.7%.
- Kuoni Group’s most important sources of income were the tour operator business in Outbound Nordic, the GTS Division with its groups and FIT business, and VFS Global’s visa business.
- The earnings situation in Outbound Kuoni Europe Unit deteriorated further. The decision was made to withdraw from several loss-making tour operator activities.
- Kuoni Group’s turnover increased by 6.3% to CHF 1 835 million (prior year: CHF 1 726 million). Organic growth was 2.2%.
- EBITA increased 5.5% to CHF 96.4 million (prior year: CHF 91.4 million).
- EBIT was CHF 59.3 million (prior year: CHF 78.3 million). This decline was due to impairments of CHF 27.2 million prompted by the announced exit from loss-making European tour operator activities. Compared with the previous year, there was an operational increase of 10.5%.
- The tour operator business in Outbound Nordic achieved turnover growth of 11.3%. EBITA was 35.1% higher than in the last year.
- The Global Travel Services (GTS) Division posted further growth in turnover (+ 8.4%), and increased its EBITA by 1.7%. The increase was particularly due to strong demand for groups travel from Asia.
- VFS Global won with a local partner the contract to provide visa services for the Kingdom of Saudi Arabia. Operations will begin in stages, starting in December 2012. The contract is VFS Global’s largest single win ever.
- Peter Rothwell, CEO of Kuoni Group, said: “The result from our tour operator activities in Northern Europe in the key summer quarter, and the continuing growth in the GTS Division’s activities, driven by our Asian exposure, have delivered a strong increase in operating earnings in the first nine months. We made an important decision to exit loss-making European tour operator activities, which has a one-off effect on results. While the European markets remain particularly challenging, our increasing exposure to Asian markets has driven impressive growth. The integration of GTA is on track. By focusing on strategically relevant areas of business, Kuoni is well positioned as a global broad-based travel services provider."