9 to 3295 billion CHF 2114 billion euros

The year 2003 was not an easy year for the majority of the European tour. And the tour operator Swiss Kuoni, which published its annual results on March 18, is no exception. Of course, Kuoni remains largely beneficial ( 147 between 2002 and 2003), but the net result was boosted by capital gains (44.1 million Swiss francs or 28,298 million euros) of assignment, last December, its subsidiary of travel BTI Central, deemed not central to its operations. Without these exceptional elements, Kuoni have still reached a positive result of 20.5 million Swiss francs, but indented on a year (2002: 26.2 million). Other indicators are, however, less favourable. Thus, the tour operator has registered a decline in its sales by 11.9, to 3,295 billion CHF (2,114 billion euros). An average result to the performance of his European peers: except for the special case of the number one British tour operator MyTravel (-29 over a year), the turnover of Thomas Cook decreased of 10.1 on the same period, and TUI of approximately 6.4, according to the latest estimates. Moreover, Kuoni has registered a decline in its result before taxes and depreciation (Ebitda) of 15.2.

Swiss and British market underperformance

The origin of these results mixed blessing: the difficulties encountered by the tour operator on its main markets. Thus, the Switzerland, which represents 28 of total revenues of the tour operator, has accused a withdrawal of its turnover 13.2. Reasons: a weak demand combined with a strategic realignment of its capabilities in charters. Other key markets, Britain and the United States, representing 24 of the total Group CA, saw their sales contract of 15.3. The decrease in the number of American tourists, as well as the negative impact of the weakness of the pound against the dollar explain, according to the group, this decline. Nevertheless, the United States and Britain contributed to a net result before taxes and amortisation of 70.4 million Swiss francs, against more than 102 million for the entire group. The good surprise came from the Scandinavian market. Restructuring measures, which had been put in place in this market in 2002, finally gave positive results: of a negative Ebitda to 14.2 million CHF, Scandinavian operations record in 2003, a positive result before taxes and amortisation of 9 million Swiss francs.

The France an increase of 2

Europe, which is 16 of the total Group CA, seems particularly take the advantage of the game. Thus, formed by the Italy, the France, the Netherlands and the Spain, it is the only registered a slight increase in its turnover in 2003, from 486 to 488 million Swiss francs, for an Ebitda also on the rise (2003: 8.3 million FS; 2002: 3.9 million FS). The France, which covers about 50 of European turnover, achieved a turnover of EUR 196,2 million, an increase of 2 over a year. If the net result of hexagonal operations is in slight decline (EUR 2.6 million in 2003 versus 2.9 million in 2002), operating income, however, rose from 3.2 to 4.5 million euros: "this good result is put in relation to the overall maintenance costs, but also the very good level of filling of circuits and the Charter" mented Emmanuel Foiry, Director General of Kuoni France. Different brands of the group have known different destinies. Thus, the recently acquired brand, holiday Fabuleuses, specializing in the North American continent, reached a turnover down 18 to EUR 13.2 million for a net loss of EUR 460 000. For its part, the Scanditours brand, specialized in the Nordic countries, identified a business volume increased by 27 over a year. In General, Emmanuel Foiry indicates that the beginning of the year 2004 is marked by an increase in two-digit levels of reservations. Also noticeable trend at the group level. Kuoni said that reservations, dated March 6, were 15 higher than the year latter at the same time. A positive sign which gives hope for a more lenient 2004 year.