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Kuoni reports half-year profits amid chairman’s resignation
Kuoni UK has reported operating profit of CHF22.7m (£9.8m) in the first six months of 2006 despite ‘difficult trading circumstances’.
Managing director Sue Biggs said long-haul holidays were hit by fuel surcharges and the short-haul market was feeling ‘the knock on effect of extreme competition and extensive price reductions’.
“Destinations such as the Maldives, Thailand and Mauritius are performing very strongly for Kuoni UK, as are some exciting new destinations such as
Oman and Indochina,” she said.
“However, other areas such as Sri Lanka, Egypt and the US are taking longer to recover.”
Announcing its first half results, Kuoni said the impact of the World Cup was greater than anticipated, and the good weather in May and June also had an impact on bookings.
The UK operating profit was down slightly on the CHF23.8m (£10.3m) earned in the first quarter of 2005, but Kuoni expects the figure for the full year to be level with last year.
Turnover for the UK was CHF319m (£137m), while the Kuoni Group as a whole reported turnover of CHF1.8bn (£775m) in the first half.
Group operating profit was CHF0.5m (£215,000) against a loss of CHF14.8m (£6.4m) last year.
Meanwhile, Kuoni chairman Andreas Schmidt has resigned ‘in view of fundamental differences of opinion with the board on issues relating to the management of the company’.
The financial press claimed senior executives had a serious disagreement after Schmid decided to pursue a merger with First Choice without informing the company’s board until a late stage.
It said Schmid had further upset colleagues by securing himself the chairmanship of the proposed combined First Choice/Kuoni business.
Reports said the merger with First Choice was now definitely off the table.
Henning Boysen, who has been appointed chairman to replace Schmid, said Kuoni would focus on growing through small and medium-sized acquisitions.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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