22-Apr-2010 9:28 AM

gategroup statement on financial impact of volcano disruption

Direct News Source

21-Apr-2010 gategroup reacted swiftly to mitigate the impact on its business following the shutdown of European air operations due to the current volcanic eruption in Iceland.

However, like its airline customers, gategroup's business has been affected by the suspension of air traffic over Europe.

As a consequence of the current eruption and assuming a restart of affected business this week, gategroup estimates an operational impact on revenue and EBITDA (earnings before interest, taxes, amortization and depreciation) to be approximately CHF 21 million and CHF 8 million, respectively.

The company remains adequately funded and, with the exception of this unprecedented one-time impact of the volcano effect, at this stage remains confident in its 2010 outlook guidance of an EBITDA margin of 7.5% to 8%.

gategroup is the leading independent global provider of onboard services to companies that serve people on the move. Shares of Zurich-based gategroup are traded on the SIX Swiss Exchange under the symbol GATE.