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Kuoni has reported its?highest earnings in 2012 for four years but warned of a challenging 2013.

The operator's?results for 2012 saw turnover increase by 14.4%. Earnings before amortisation (EBITA) came to CHF 119.3 million, an increase of 5.7% -?its highest for four years.

Earnings after interest and taxes (EBITDA) decreased to CHF 53.3, reflecting a one-time charge relating to the withdrawal from loss-making European tour operating activities.

The company said growth was driven by the positive performance of the Global Travel Services division, the tour operating business in outbound Nordic, and VFS Global’s visa services business.

It said all divisions apart from outbound Kuoni Europe and outbound emerging markets made a positive contribution.

In a statement Kuoni said: "Due to the continuing, difficult economic environment a challenging year 2013 is expected."

Peter Rothwell, chief executive of Kuoni Group, said: “In 2012 we made long-term investments in the development of strategically important business activities.

"The integration of GTA went according to plan. We have transformed our portfolio of activities. At the same time we have been able to increase turnover organically and have achieved our best earnings before amortisation (EBITA) for four