Kuoni losses widen
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Kuoni has posted a net loss of CHF49.8 million (US$51.4m) for the first half of 2012 – 14.5% worse than the loss it incurred in the same period last year.
While group turnover increased 26.7% to CHF2.65bn in the six-month period, the net loss was brought about following costs associated with its acquisition of GTA, and other “project costs”. In terms of operations, Kuoni remarked that its Global Travel Services (GTS) division has doubled its revenues, driven by Asian markets, while its consular services arm VFS Global had also performed strongly.
Continued economic strains in Europe caused a ‘very negative effect’ on performance for the group, although its online platform Octopustravel.com showed ‘significant growth’. A third of its turnover is now generated outside of Europe and its business models in Asia are likely to lead growth over its traditional tour operating arms in Europe.
“Kuoni’s global strategy, with its ‘asset-light’ approach and our strong position in Asia, have been vindicated, especially in the light of the continuing European debt crisis. We have been able to achieve organic growth and improve our performance in the first half of 2012, even in this difficult economic environment,” said Peter Rothwell, CEO of Kuoni Group.
