Kuoni Nordic and other losses hit €163mn

Kuoni sold tour operations to DER Touristik in June
Kuoni Group says that losses made by businesses sold earlier this month, including its Nordic arm, totalled around €163 million in the first six months of 2015, compared with €38 million in the same period last year.
Kuoni sold its tour operations in Scandinavia/Finland, the UK, Switzerland and Benelux to DER Touristik for an undisclosed sum in late June. It plans to concentrate on new markets such as Asia and be more of a wholesaler.
Without these losses taken into account, the Swiss group saw net profits fall from €26 million to €5.4 million, or 79%. Peter Meier, the group’s chief executive, blamed currency movements for the dip in the profitability of the remaining businesses.
“Kuoni Group’s organic growth above market in first half of 2015 vindicates the new strategic direction initiated at the beginning of the year and the focus on global B2B business areas. However, the strong Swiss franc had a significant negative impact on turnover due to the conversion into our presentation currency,” he said.
He said the group’s Global Travel Distribution (GTD) and VFS Global had recorded strong growth, with VFS processing more than 10 million visa applications for the first time. He added that the sale of tour operating activities meant Kuoni was achieving its objective of a new strategic direction “faster than planned”.
TTG Digital