Kuoni Third-Quarter Profit Rises 22 Percent on Acquisitions

Kuoni Reisen Holding AG, the largest Swiss travel company, said third-quarter profit rose 22 percent after acquisitions of tour operators fueled sales growth.

Net income climbed to 95.7 million Swiss francs ($88 million) from 78.6 million francs a year earlier, the Zurich- based company said today in a statement. That beat the 82.4 million-franc median estimate of five analysts surveyed by Bloomberg. Sales gained 14 percent to 1.49 billion francs, with acquisitions adding 6.3 percentage points to revenue growth.

Kuoni has bought more than 10 companies in two years to boost sales of more-profitable long-haul and adventure trips. It acquired Les Ateliers du Voyage, a French rival, and a stake in Russian tour operator UTE Megapolus in July. Kuoni is jostling for part of a global market that the World Travel & Tourism Council expects to expand to more than $7 trillion this year.

Full-year earnings before interest and tax will be more than 130 million francs, and sales will exceed 4.5 billion francs, Kuoni said today. Analysts expected profit of 139.3 million francs, according to the average of 14 estimates. The forecast implies fourth-quarter EBIT may fall as much as 20 percent to 26.5 million francs, according to Bloomberg calculations.

Bookings had climbed 14 percent from a year earlier by value as of Nov. 11, the tour company said today.

Third-quarter operating profit slid 44 percent to 8.2 million francs at Kuoni’s U.K. unit. The earnings were “still short of its objectives,” the company said, without being more specific. Earnings rose 6.5 percent to 21.2 million francs in Switzerland, where the market is “very difficult,” Kuoni said.