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World Duty Free sees core earnings up 18 percent over three years, shares jump

Published 15/01/2015, 13:22
© Reuters.  World Duty Free sees core earnings up 18 percent over three years, shares jump
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MILAN (Reuters) - Italian travel retailer World Duty Free (MI:WDF) sees adjusted core earnings rising nearly 18 percent to 335 million euros (257.79 million pounds) between 2014-17 as it seeks to put its house in order before searching for a partner.

Shares in the company turned positive after the release of its three-year business plan on Thursday and rose sharply higher, trading up 5.8 percent at 8.8 euros by 1312 GMT.

The group that runs stores in some of Europe's busiest airports said its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was expected at between 279 million and 294 million euros this year, compared with an expected 2014 figure of 284 million euros.

Net debt for the world's second largest travel retailer is expected to fall to 365 million euros in 2017 from a level of 950 million euros at the end of 2014. Last year's figure was revised from a previous guidance of between 885-935 million euros.

The business plan would open the way for seeking an industrial partner to replace Italy's Benetton family as a controlling shareholder, sources told Reuters last month.

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