STOCKHOLM, Sweden, Oct. 24, 2002 (PRIMEZONE) --Ticket Travel Group:
Interim Report January - September 2002
- Positive operating income SEK 0.3 (-19.1) million and increased market share in package holidays in a weak market
- Operating income SEK 7.8 (-11.5) million before amortisation of goodwill
- Net sales SEK 2,478.0 (2,607.7) million, - 5 %
- Agreement with Ving broadens the range and increases sales potential
- Costs savings programme successful, costs reduced in the period by SEK 43.5 million (excluding currency effects)
- Structural agreement with Fritidsresegruppen refines Ticket's retailer role and secures commission levels for 5 years
Important Agreements In The Third Quarter
Ving completes Ticket's charter range Ticket has entered into an agreement with My Travel which means that Ticket Sweden, as from September 2002, can offer its customers Ving's total travel range. Ticket therefore has all leading package holiday companies in its range, which further strengthens the company's role as an independent retailer. Ving is one of Sweden's leading travel companies, with 500,000 travellers in 2001. Ticket's long-term goal is to achieve the same share of Ving's total sales as Ticket achieves for other suppliers, which is 20 percent. Ticket considers that this sales potential can be achieved with the current system platform and personnel, which also represents an increase in productivity. Ticket's ambition is to maintain the current share of the charter holiday supplier's sales.
Structural agreement with Fritidsresegruppen Ticket has entered into an agreement for the disposal of the subsidiary WorldWide (arranger of schedule flight based package holidays) to Fritidsresegruppen. Ticket will continue to retail WorldWide's products. In addition, Ticket and Fritidsresegruppen have signed a five-year agreement for the sale of Fritidsresegruppen's products in the Swedish and Norwegian markets at fixed commission levels.
Ticket has also entered into an agreement which gives Ticket's customers the opportunity to book Fritidsresor's products online on Ticket's web sites in Sweden and Norway, using the same simple procedures as on Fritidsresor's web sites. This strengthens Ticket's multi-channel strategy that builds on customer's receiving an identical service in all channels. The company's long term sales potential is therefore considered to be increased. The online service is planned to be launched in the winter 2002-2003. Sales of air tickets and ordinary package travel on ticket.se will continue as before.
The disposal of WorldWide has been estimated to generate a sale liquidity for Ticket of around SEK 26 million. Ticket's disposal profit is estimated to be SEK 24 million. The agreement is dependant on The Swedish Competition Authority's approval.
MARKET AND SALES
Travel sales for the period have been negatively affected by three factors. The unusually warm summer, the general economic situation and, in Sweden, the weakness of the Swedish krona. Ticket considers that travellers in Sweden, but above all in Norway, have been influenced by the uncertainty around the current global political situation.
Passenger figures from The Swedish Civil Aviation Authority for the period show that the number of overseas passengers was 11% lower than for the same period in 2001. Both business and private travel are included in the figures.
Demand has increased in the period for cheap charter holidays to countries where cost levels are low, mainly Bulgaria and Turkey. Interest in travel to Portugal and Spain has been somewhat lower than previous years. The Canary Islands will however, for the winter of 2002- 2003, defend its position as Norwegians' and Swedes' most popular holiday destination.
The market for low price air travel has grown strongly in recent years. In the Nordic countries, several players currently have a low price air travel profile. The established airlines are at the same time launching new concepts directed at the low price segment. Ticket cooperates with the majority of these players, typically low price companies such as Sterling, and established full service companies such as KLM, and through this has broadened its range.
Group sales decreased in the period by 5 % compared with the previous year. Sales increased in the third quarter by 2 % on last year. Ticket has increased its market share of the total sales of charter and package travel in Sweden and Norway.
NET SALES
Ticket's consolidated net sales for the period were SEK 2,478.0 (2,607.7) million, which is a decrease of 5 %. For comparable shops, currency effects excluded, the decrease was 3 %. The Swedish company's net sales for the period were SEK 1,628.0 (1,718.5) million, a decrease of 5 %. Net sales in the Norwegian company were SEK 850.1 (889.1) million for the period, a decrease of 4 %.
EARNINGS
Group earnings for the period were SEK 0.5 (-19.0) million after financial items. Consolidated operating income was SEK 0.3 (-19.1) million. Before amortisation of goodwill the operating income was SEK 7.8 (-11.5) million. The gross profit margin for the Group was 10.2 (10.1) %.
The Swedish company's operating income for the period was SEK 4.1 (-1.3) million. Operating income for the period for the Norwegian company was SEK -3.8 (-8.8) million, which before amortisation of goodwill was SEK 1.8 (-3.4) million.
THIRD QUARTER 2002
Consolidated net sales for the third quarter were SEK 703.9 (692.4) million, an increase of 2 %. The increase was 5 % for comparable shops, currency effects excluded. The Swedish company's net sales for the quarter were SEK 482.7 (474.4) million, an increase of 2 %. Net sales for the quarter for the Norwegian company were SEK 221.3 (218.0) million, an increase of 1 %. Sales in Norway for the quarter were, however, 5 % lower where currency effects are excluded. Ticket considers this to be primarily due to a slow recovery after the terrorist attacks in the USA in September 2001. Ticket, however, increased its market share in both Norway and Sweden.
Consolidated earnings for the quarter were SEK -8.5 (-24.2) million after financial items. Operating income for the quarter was SEK -8.7 (- 24.4) million which before amortisation of goodwill was SEK -6.2 (-21.8) million. Gross profit margin for the quarter was 10.7 (10.5) %. The Swedish company's operating income was SEK -3.7 (-9.6) million. Operating income for the Norwegian company before the amortisation of goodwill was SEK -3.1 (-5.1) million for the quarter.
For further information and questions, please contact: CEO Dag Tveteras, +46 70 313 71 80 Financial Director, Katarina Sjogren Petrini, +46 70 567 51 73 The printed version of this Interim Report can be ordered by calling, +46 8 702 66 00
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