Nuance grows Q1 revenues while earnings dip

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Higher passenger numbers have led to revenue growth for the group despite hikes in concession fees and lower spend per passenger

The Nuance Group, has reported total revenues of SFr381.3m for the first three months of 2004, a 4.2% increase on the same period last year. The group noted that while passenger volumes showed clear signs of recovery, up eight percent on the first quarter of 2003, revenue per customer suffered a year-on-year decline, partly due to adverse exchange rates. However, earnings before interest, taxes, depreciation and amortisation of goodwill at were adversely affected by increases in concession fees.
 
Average spend per passenger dropped 4%, with the group claiming changes in the passenger mix resulting from the strong growth of low-cost carriers had affected the figure. Nuance said it had already taken action to adapt its product ranges and shop designs to the changed demand, as well as changing its pricing policy in countries particularly affected by the impact of currency movements.

The company anticipated that the second three months of the year would see a further recovery of the travel market and a corresponding rise in revenues and passenger volumes.