Nuance battles downturn amid drop in revenues and profits

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The Nuance Group has announced a drop of 1% in consolidated operating revenue to SFr1.72bn ($1.28bn) for 2002

 Total operating revenue including revenue from joint ventures was SFr2bn ($2.68bn) a 1.5% increase on 2001.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) net of exceptional items amounted to SFr81.9m ($61.1m), a fall of 18% on 2001. This follows a fall of 22% in these figures from 2000 to 2001.

Non-recurring exceptional expenditure incurred in connection with the sale of The Nuance Group to Italian-based Gecos/Stefanel eroded SFr35.2m ($26.3m) from the 2002 bottom-line result.

To date in 2003, the company has also been hit by the effects of SARS in Asia.

Nuance said: "With the crisis in the international travel market showing little sign of easing, the overall prospects for The Nuance Group, which is active worldwide and thus also in Asia (including Hong Kong and Singapore), did not improve in the first quarter of 2003. Operating revenue for the first three months amounted to SFr366m ($273m) down 2% year on year.

But the company remained bullish on prospects for the year ahead.

It said: "Despite negative market projections, the company's Executive Management still sees opportunities to further strengthen Nuance's market position in 2003, and expects to witness a recovery in the overall travel market in the second half of the year."