12 November 2009

Kuoni sees Ã¢â¬ËœslightÃ¢â¬â¢ bookings improvement

Latest booking figures for Kuoni are showing a "slight upward trend," according to the operator as it reported a next loss for the first nine months of 2009.

The Swiss tour operating group said it viewed the stabilisation of its business performance as a positive achievement.

The UK in particular is seeing a "steady increase" in bookings over the same time last year.

Kuoni UK bookings were down by seven per cent in local currency terms at November 8, against group-wide bookings down by 12%.

Group CEO Peter Rothwell said: "Despite the adverse external influences, I am confident that the Kuoni Group will post a positive operating result for 2009 as a whole.

"On the basis of current economic projections, I do not expect to see a pick up in the demand for travel products until the second half of next year."

The statement came as the company reported underlying earnings before interest and taxes had slumped by more than 81% to CHF 21.9 million for the first nine months of 2009 over the same period a year earlier.

The net result was a loss of CHF 5.7 million against a profit of CHF 125.7 million for the same period last year. Turnover was down by 21.1% to CHF 2.977 million (down 21.1 %).

Kuoni said 2009 "continues to be impacted by external influences".

The company added: "The global financial and economic crisis and the substantial net negative impact of currency movements depressed results right through to September.

"However, through intensified cost controls Kuoni achieved an improvement in its operating result."

Third-quarter turnover totalled CHF 1.218 million, while underlying EBIT for the period amounted to CHF 62.6 million.

Kuoni is undergoing a cost saving restructuring which is due to be completed by the middle of next year.

by Phil Davies