Recovering demand for high-margin luxury watches helped Swatch post in-line net profits for the first half today.
The maker of Omega, Tissot and Rado watches said net profit rose 17 per cent to 217 million Swiss francs ($172.9 million) in the first six months as the industry recovered from a global travel slump caused by war in Iraq and the Sars virus in Asia.
Profits leapt despite Swatch splashing out 20 million Swiss francs on marketing to cash in on its role as official timekeeper at the Olympic games in Athens, analysts noted.
Swatch said sales had risen 8.9 per cent in local currencies to 1.97 billion Swiss francs, while watch sales alone were up 13.8 per cent - outstripping a 10.8 per cent rise in Swiss watch exports for the same period, used as a benchmark for Swatch.
Swatch remained confident for the second half of the year, expecting business to develop "quite positively" despite a "difficult and challenging" basis for comparison after a recovery kicked in during the last six months of 2003.