Economic uncertainties could hit business in some markets, Kuoni has warned.
Unveiling the group’s latest financial results, CFO Max Katz said: “Our performance in the first few weeks of 2008 gives us grounds for cautious optimism about the year as a whole.
“The international financial markets do harbour uncertainties that could adversely affect the general economic mood in some of our markets. But with our broad business presence, the risks here are well spread in both geographical and segment terms.
“Experience tells us that Kuoni’s premium business is more resilient to economic downturns than the inclusive-tour segment. In addition, increased purchasing power in a number of countries has also raised the demand for higher-end travel products.”
He said booking levels at March 10 for the Kuoni Group’s tour operating business were 12% above last year in Swiss-franc terms.
Year-on-year booking levels for the different countries were:
United Kingdom -6% (in GBP + 6%)
Switzerland +8%
Scandinavia +41%
France +12%
India +27%
In 2007, Kuoni’s UK earnings before interest and taxes (EBIT) fell from CHF52.9 million to CHF44.1 million.
The tour operator said its UK earnings were hit by the cost of acquiring specialist operators during the year, including CV Travel.
On the upside, these new brands helped the operator grow turnover from CHF 698 million in 2006 to CHF 770 million last year, bringing an end to recent turnover decline.
“The newly-appointed top management initiated a number of actions in the second half-year that will deliver a significant EBIT improvement in the medium term,†Kuoni said in a statement today.
The Kuoni group as a whole reported strong growth and record net result.
It raised turnover 15.1% from CHF 4,082 million in 2006 to CHF 4,699 million, including year-on-year organic growth of 6.1%.
EBIT increased 15.3% from CHF 121.7 million to CHF 140.2 million.
“The net result for the year of CHF 136.3 million was a 16.8% improvement on 2006 CHF 116.7 million and was the highest ever recorded by the Kuoni Group,†it said.
By Bev Fearis
