gategroup Announces Provisional Figures for 2012
ZURICH, February 11, 2013 - Today gategroup released provisional figures on
2012 key financials in advance of the audited financial results due on March
14, 2013. The Company expects 2012 total revenues of CHF 2,993 million versus
reported revenues of CHF 2,688 million in 2011, and EBITDA of CHF 170.8
million versus CHF 201.7 million in 2011, resulting in an EBITDA margin of
5.7% (2011 of 7.5%). Consistent with its previous announcements, gategroup
implemented restructuring measures in 2012 to principally address reduced
profitability in its European Airline Solutions business. Due to the ongoing
weak outlook for European airlines, gategroup has undertaken additional
restructuring and will reduce the carrying value of certain assets to reflect
current market trends. Accordingly, combined restructuring and impairment
charges are expected to be CHF 73.9 million and will result in an estimated
loss for the year of CHF 56.9 million. Net Income excluding these one-offs
would be approximately CHF 17.0 million for 2012. In view of the expected
reported loss for the period the Board will not propose a dividend for the
financial year 2012 to the Annual General Meeting of Shareholders.
gategroup reports a total revenue of CHF 2,993 million corresponding to growth
of 11.3% compared to the audited revenues of CHF 2,688 million for 2011.
EBITDA of CHF 170.8 million was achieved compared to EBITDA of CHF 201.7 in
2011, resulting in an EBITDA margin of 5.7% (2011 of 7.5%).
The trading performance of gategroup's European Airline Solutions business
continued to be adversely impacted by market conditions and the consequential
financial pressure on European airlines in 2012. 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.
The Company has implemented restructuring measures in its Airlines Solutions
European business in order to align its operations to compensate for the
weaker market. These initiatives include direct labor savings, indirect labor
rightsizing, back office streamlining and portfolio optimization measures.
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
CHF 22.2 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.
In addition, in the fourth quarter of 2012 gategroup will take an additional
non-cash impairment charge of CHF 51.1 million, the majority of which is
related to assets in the European Airline Solutions business. These asset
impairments are one-time adjustments impacting the 2012 results.
Combined restructuring and impairment charges accordingly amount to CHF 73.9
million for 2012 compared to net charges in 2011 of CHF 4.3 million. This is
expected to result in a Net Loss for 2012 of CHF 56.9 million. Excluding the
one-time restructuring and impairment charges of CHF 73.9 million the Net
Income for 2012 would be approximately CHF 17.0 million. The Balance Sheet of
the Group remains strong, however, in view of the expected reported loss for
the period the Board will not propose a dividend for the financial year 2012
to the Annual General Meeting of Shareholders.
The restructuring initiated in 2012 in the European Airline Solutions business
will address the known market degradation experienced across the European
customer base. Given the ongoing intense pressure on European airlines, the
Company is prepared to address any further curtailments that certain customers
may make during 2013.
While the trading conditions in Europe are expected to remain challenging in
2013, the rest of gategroup's business portfolio, representing approximately
60% of the Group, is on track and 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.
In aggregate the strengthening of these businesses will be flattened by the
outlook in Europe. 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 March 14, 2013, and will provide further
information also, with regard to the outlook, at that time.
gategroup is the leading independent global provider of products, services and
solutions related to a passenger's onboard experience. gategroup comprises the
following brands: deSter, eGate Solutions, Gate Aviation, Gate Gourmet, Gate
Retail Onboard, Gate Safe, Harmony, Performa, potmstudios, Pourshins and
Supplair. Shares of Zurich-based gategroup are traded on the SIX Swiss
Exchange under the symbol GATE. Please visit www.gategroup.com.
Jean-Luc Ferrazzini Dagmara Robinson
Head of Corporate Communications Director Investor Relations
+41 43 812 9128 +41 43 812 5496
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Tensid Ltd., Switzerland newsbox.ch Provider/Channel related enquiries
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