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INTERNATIONAL. gategroup today reported revenue for 2012 of CHF2,993 million (US$3,260 million), a rise of +11.3% on 2011. EBITDA dipped from CHF201.7 million in 2011 to CHF170.8 million (US$186 million), for a margin of 5.7% (7.5% the previous year).
The company’s Airline Solutions division – which includes retail arm Gate Retail Onboard – continued to be hit by poor market conditions and financial pressure on European airlines in 2012.
The company said: “While the rest of its global business showed growth and stable results, this was not sufficient to compensate for the weaker results in the European Airline Solutions business, which represents approximately 40% of gategroup’s revenue.”
gategroup said: “The company has implemented restructuring measures in its Airlines Solutions European business in order to align its operations to compensate for the weaker market. Consistent with announcements in its half-year and third-quarter reports, the implementation of restructuring measures will continue into 2013. Additional measures have also been undertaken to address the ongoing weak performance and outlook for the European airline industry. Accordingly a total provision of CHF22.2 million will be made in 2012, predominantly for European restructuring costs. The initiatives being implemented are expected to have an increasingly positive impact on the operations through 2013.”
Combined restructuring and impairment charges are expected to be CHF73.9 millio (US$80.5 million) and will result in an estimated loss for the year of CHF56.9 million (US$62 million). Net Income excluding these one-offs would be around CHF17.0 million (US$18.5 million) for 2012.
The company said it expected trading conditions in Europe to remain difficult in 2013, though it said the rest of the group is performing well.
“North America continues to demonstrate steady expansion in revenues and margins, supported by a stable market outlook. Across the Emerging Markets, the strong revenue growth achieved in 2012 will result in stronger EBITDA in 2013. The newly formed Product and Supply Chain Solutions business is expected to continue its strong top-line and stable margin development.”
gategroup expects “nominal growth” in revenues in 2013 and projects an EBITDA margin in the range of 5.5% to 6.0%. The group releases its full audited financial results on 14 March.
