In a difficult market environment the Kuoni Group increased its turnover for the first half of 2011 by almost 19% to CHF 2 084 million. Operating earnings (EBIT) improved to CHF - 32.5 million (previous year: CHF - 37.8 million) despite the one-off costs associated with the acquisition of Gullivers Travel Associates (GTA). Underlying EBIT stood at CHF - 1.5 million (previous year: CHF - 1.8 million). This increase is due to organic turnover growth of 6.2%, especially in the Destinations Division, and to the development of VFS Global. The Scandinavian market also made a positive contribution to growth. VFS Global (administrative consular visa services) continued to post high rates of growth and has become a major source of earnings for Kuoni. Declines in the value of all the main currencies against the Swiss franc pulled Group’s turnover down by 9.8%. Political developments in North Africa also had a significant negative impact on demand in the European tour operating business. Turnover in the range of CHF 5 billion is expected for the 2011 financial year as a whole, and an EBIT margin similar to 2010.
 
Highlights of the first half of 2011
Kuoni Group’s turnover came to CHF 2 084 million. This represents an increase of 18.7% on the previous year. Organic growth was 6.2%.

Operating earnings (EBIT) improved to CHF - 32.5 million despite acquisition costs for GTA of CHF 11.6 million (previous year: CHF - 37.8 million). Underlying EBIT stood at CHF - 1.5 million (previous year: CHF - 1.8 million).

The Destinations Division saw strong organic growth, with turnover increasing by 15.0%.

The acquisition of Gullivers Travel Associates (GTA) was an important strategic move for Kuoni. GTA is one of the world’s leading providers in the fast growing market for business-to-business online travel services. GTA performed well in the first two months since the takeover, generating turnover of CHF 358 million and operating earnings (EBIT) of CHF 11.0 million, excluding acquisition and integration costs.

The Scandinavian markets generated 4.5% organic turnover growth in a challenging environment.

VFS Global , which specializes in consular visa services, saw turnover increase by 23.3% to CHF 90 million. Operating earnings (EBIT) rose by 31.6% to CHF 20.4 million. EBIT margin was 22.7%. VFS Global is operating through more than 425 offices in 52 countries. Business volumes are relatively evenly spread across the whole calendar year, and not particularly dependent on holiday seasonality.

In May 2011, Kuoni completed a CHF 257 million rights issue in connection with the financing of the GTA acquisition.

Peter Rothwell, CEO of the Kuoni Group , made the following comments about the half-year results: 'The purchase of GTA is an important transformational acquisition for Kuoni, which gives the company an excellent strategic position in a large and growing market. The Group’s positive organic turnover growth of 6.2 % delivered an improved result. I’m very pleased in particular with the strong growth in the Destinations Division, in VFS Global, and in Scandinavia.”