STOCKHOLM, Jan. 31, 2002 (PRIMEZONE) -- Ticket Travel Group AB (publ) (Stockholm:TICK)
YEAR-END REPORT JANUARY - DECEMBER 2001
-- Group operating income SEK -62.4 (-89.9) million.
-- Earnings per share SEK -3.42 (-6.17).
-- Group net sales SEK 3,178.0 (3,632.4) million, -13 %
-- Sales heavily affected by the terrorist attacks of 11
September, down 27% in the fourth quarter.
-- Cost cutting program reduced costs on a full-year basis for
2002 by approximately SEK 50 million compared with 2000,
excluding currency effects.
-- Ticket has disposed of its 50 per cent holding in the Belgian
company. Effect on earnings SEK -14.8 million. Total effect
on 2001 earnings is SEK -28,9 million including earnings
share.
-- Sales in January 2002 have recovered but are somewhat lower
than January 2001.
MARKET AND SALES Group sales for the year were down 13% and down 27% in the fourth quarter, compared with the previous year.
A downturn in the economy, which could be seen as early as February, has reduced the demand for travel. The terrorist attacks of 11 September and the resulting global concern have had a strong negative effect on the travel market. Global air traffic in 2001 was 6% lower than 2000, according to the UN air transport organisation ICAO. This is the largest fall in air traffic since the Second World War. In comparison, in 1991 when air traffic levels were affected in the first six months of the year by the war in Kuwait, air traffic fell by 3%.
Sales fell dramatically in the days immediately following the terrorist attacks, and new sales have only recovered marginally. The number of cancellations after 11 September were initially high. They stabilised to normal levels only to increase markedly again when the bombing of Afghanistan began.
Hardest hit have been destinations in the USA, Egypt, Morocco and Tunisia. Most bookings are to traditional charter destinations such as various destinations in the Canary Islands.
The market in Sweden has been further affected by the weak krona, and in Belgium, the market has been weakened by airline bankruptcies.
Ticket has maintained its market share of total sales in the charter travel and package holiday markets in Sweden and Norway.
NET SALES Ticket Group's net sales for the year were SEK 3,178.0 (3,632.4) million, which is a fall of 13%. For comparable shops, the fall was 12% excluding currency rate effects.
The Swedish company's net sales for the period were SEK 2,099.0 (2,488.0) million, a fall of 16%. Net sales for the Norwegian company for the period were SEK 1,079.0 (1,144.3) million, a fall of 6%.
EARNINGS Group earnings for the year were SEK -61.4 (-92.7) million after financial items. Consolidated operating income was SEK -47.6 (-30.6) million, excluding non-recurring items. Non-recurring items includes a charge of SEK -14.8 million resulting from the sale of Ticket's stake in Ticket BBL Travel. In 2000, non-recurring items included a charge of SEK -66.7 million for the write-off of Ticket's involvement in Dreamticket and a SEK 7.4 million refund from the pension insurance company Alecta. The gross profit margin for the Group was 10.2% (10.5). Group sales and administration costs were SEK 25.4 million lower than the previous year.
The Swedish company's operating income fell to SEK -15.3 (24.4) million, excluding the pension refund from Alecta. Operating income for the Norwegian company improved to SEK -18.2 (-25.3) million and operating income before amortisation of goodwill was SEK -11.0 (-19.3) million. As at the day of sale, Ticket's share in the loss of the Belgian business were SEK -14.1 (-8.8) million. On 3 December Ticket disposed of its 50 per cent stake in Ticket BBL Travel, which resulted in a charge of SEK -14.8 million. Ticket's 2002 earnings will therefore not be affected by the Belgian business. Ticket's earnings share from the associated UK company Dreamticket was SEK - (-20.8) million.
FOURTH QUARTER 2001 Consolidated net sales in the fourth quarter were SEK 570.3 (783.4) million, a fall of 27%. For comparable travel agents the fall was 27% excluding currency rate effects.
The Swedish company's net sales in the quarter were SEK 380.4 (540.3) million, a fall of 30%. For the Norwegian company, net sales for the quarter were SEK 189.9 (243.1) million, a fall of 22%.
Group earnings for the quarter after financial items were SEK- 42.4 (- 82.0) million. Operating earnings were SEK -28.5 (-15.1) million, excluding non-recurring items. Non-recurring items for 2001 include a charge of SEK -14.8 million relating to the disposal of Ticket's holding in Ticket BBL Travel. In 2000, non-recurring items included a charge of SEK -66.7 million for the write-off of Ticket's involvement in Dreamticket. The gross profit margin for the quarter was 10.6% (11.3). The Swedish company's operating income was SEK -14.0 (1.8) million excluding the pension refund from Alecta. Operating income for the Norwegian company was SEK -7.5 (-11.6) million for the quarter before goodwill amortisation. As at the day of sale, Ticket's share in the earnings of the Belgian business for the quarter was SEK -5.1 (-3.7) million. On 3 December 2001 Ticket disposed of its 50 per cent holding in Ticket BBL Travel, which resulted in a charge of SEK -14.8 million. Ticket's earnings share from the associated English company Dreamticket was SEK - (0.0) million for the quarter.
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