Club Med Shows Improvement in Sales and Earnings for the First Half
Club Med Shows Improvement in Sales and Earnings for the First Half of Fiscal 2012
- Business volume up 4.6% to euro 798 million
- 33,000 additional 4 and 5-Trident customers, a 7.6% increase
- Villages operating income up 13% to euro 53 million
- Net income before tax and non-recurring items up 38% to euro 39 million
- Net income up 72% to euro 17 million
- Free cash flow up 57% to euro 47 million
MIAMI, June 8, 2012 - The first-half 2012 financial results have been announced with positive figures, specifically for Club Med North America.
Snapshot of key Winter 2012 figures for North America:
— +5.7% in village revenue (+24% since 2009)
— +23% in Sandpiper Bay, FL business volume
“Such growth can be attributed in great part to our transition to an upscale family product with a supporting marketing strategy,” stated Xavier Mufraggi, President and CEO Club Med North America. “A key example is the renovation and re-positioning of our property in Florida, Sandpiper Bay. The resort features unique programs for kids, activities and high-level sports and has been exceptionally received by loyal customers and new customers alike. We are confident in the North American market and hope to announce several projects to strengthen our portfolio with this target in the near future.”
Henri Giscard d’Estaing, Chairman and Chief Executive Officer, commented:
“Club Mediterranee reported a further improvement in earnings for first-half 2012, in a contracting European tourist market. The increase in sales, the number of customers and their satisfaction rate, especially in 4 and 5-Trident villages, are powerful indicators of Club Med’s success in the premium all-inclusive vacation segment. Market share gains in mature countries, especially France, as well as the strategy of expanding in fast-developing countries and the scheduled openings of 4 and 5-Trident villages in 2013 provide us with advantages in an increasingly difficult European market.”
New improvement in sales and profitability in first-half 2012
1st semester 2012 financial highlights (1 November 2011-30 April 2012)
(in euro millions) H1-10 H1-11 H1-12 Change H1-12 vs.
H1-11
—- ——-
Village business volume (1) 680 763 798 +4.6%
Consolidated revenue
Consolidated (2) 679 754 783 +3.8%
Villages (3) 693 747 774 +3.7%
Villages EBITDA(4) 61 80 85 +5.7%
As a % of revenue 9.1% 10.7% 10.9% +0.2 pts
—- —- —— ——
Operating Income - Villages 28 47 53 +13.2%
Operating income - Management of assets (3) (14) (14)
Other operating income & expense (7) (7) (7)
—— —- —- —-
Operating income 18 26 32 +25%
Net income before tax and non-recurring items 14 28 39
Net income 3 10 17
—- —- —- —-
Investments (22) (5) (30) (24)
Disposals 2 17 23
Free cash flow 21 30 47
Net debt (218) (169) (123)
(1) Total sales, regardless of village operating structure
(2) Includes euro 6 million, euro 7 million and euro 9 million in property development revenue for, respectively, H1-2010, H1-2011 and H1-2012.
(3) Like-for-like
(4) Village earnings before interest, taxes, depreciation and amortization.
(5) Nets of grant and insurance settlements
— In the first six months of fiscal 2012, Villages business volume
(corresponding to total sales regardless of village operating structure)
rose by 4.6% to euro 798 million from euro 763 million in first-half
2011.
— Villages revenue grew by 3.7% like-for-like, with increases of 4.5% in
Europe and 4.4% in the Americas. In Asia, the slight 1.2% decline in
revenue was due to the impact on the Australian market of the closing of
the 3-Trident Lindeman Island village and to sluggish demand in the
Japanese market. Excluding the impact of Lindeman Island, revenue in
Asia increased by 3.5%.
— RevPAB (revenue per available bed) rose 1.5%, led by the 1.1%
improvement in the average price per hotel day to euro 157 and a
1.2-point increase in the occupancy rate to 71.1%.
Performance indicators
(in euro millions) H1-10 H1-11 H1-12 Change H1-12
vs. H1-10
—- —
Villages EBITDAR(1) 140 156 163
As a % of revenue 20.8% 20.9% 21.1% +0.3 pts
—- —— ————
Villages EBITDA(2) 61 80 85
As a % of revenue 9.1% 10.7% 10.9% +1.8 pts
Operating income - Villages 28 47 53
As a % of revenue 4.1% 6.2% 6.8% +2.7 pts
—- —- —- —- -
(1) Village earnings before interest, taxes, depreciation, amortization and rents
(2) Village earnings before interest, taxes, depreciation and amortization
— Villages EBITDA rose to euro 85 million from euro 80 million in
first-half 2011. EBITDA margin widened to 10.9% from 10.7% a year
earlier and could amount to around 9% for the full fiscal year,
depending on the extent of the deterioration in European tourist
markets. Villages EBITDA margin in fiscal 2011 came to 8.9%.
— Operating income - Villages amounted to euro 53 million, compared with
euro 47 million in first-half 2011, a 13.2% increase.
— Net income before tax and non-recurring items rose by 38% to euro 39
million, from euro 28 million in first-half 2011.
— Net income stood at euro 17 million, compared with euro 10 million in
first-half 2011.
— Free cash flow improved to euro 47 million from euro 30 million one year
earlier and came to euro 24 million before disposals.
— The Group continued to pay down debt, which was reduced to euro 123
million at 30 April 2012, from euro 165 million at 31 October 2011.
Subsequent events
— Accelerated repayment of a euro 50-million loan. In light of its
improved financial position Club Mediterranee decided to move forward
the repayment of a euro 50-million loan secured by the Cancun village to
31 May 2012. Initially repayable in 2017, the loan carried a 6.58%
interest rate. After paying back the loan, the Group had euro 147
million in cash and cash equivalents.
— Conversion of ORANE issued in June 2009. Conversion of the ORANE bonds
issued in June 2009 at a price of euro 8.55 will be mandatory on 8 June
2012. Of the 5,962,432 ORANEs originally issued, only 1,448,681 had not
yet been converted into shares as of 31 May 2012. After conversion of
the ORANE, the number of Club Mediterranee shares will total 31,821,142
and its share capital euro 127,284,568.
1. Snow village sales up sharply in first-half 2012
The number of customers for European snow destinations rose by 5.4% in the 2012 Winter season to 184,000, from 174,000 in the prior-year period.
The Valmorel village in the French Alps, which opened in December 2011, was successfully launched with an 85% occupancy rate in its first season and a very high satisfaction rate. The village had 31,000 customers, of which 43% non-French. It will be open during the Summer season and has already received a large number of bookings.
2. Club Med continues to gain market share in a contracting European tourist market.
— Outperforming the market in France Club Med’s business volume in France
rose by 5.3% for the 2012 Winter season with the number of 4 and
5-Trident customers rising by nearly 10%. This good performance was
obtained in an increasingly difficult business environment that saw a
4.2% decline in the market, according to the French Tour Operators
Association (CETO).
— New market share gains in Europe In other mature countries, Club Med
continue to outperform the market, recording a 2% increase in number of
clients in Belgium (versus a 6.7% market decline), a 5% rise in business
volume in the United Kingdom (versus a 7% market decline) and a 19%
increase in Germany in business volume (where the market expanded by
9%).
— Customer gains in fast-developing countries* The number of customers
from fast-developing countries rose by 10% to 129,000 and accounted for
20% of Club Med’s 2012 Winter season clientele. The increase was 31% in
the Chinese market.*China, Brazil, Russia, Singapore, South Korea,
Argentina, South Africa, Mexico and Turkey
3. New developments in the upmarket segment
Openings and renovations of upmarket villages continued in the first half as the Group pursued its strategic objective of a portfolio comprising two-thirds 4 and 5-Trident villages by year-end 2012. Following the opening of the Valmorel village this winter, the Guilin village in China will be pre-opened this summer and will operate at full capacity starting spring 2013.
During Winter 2013 season, two new villages will complete the up market portfolio:
- Opening in December 2012, Pragelato Via Lattea (Italy) will be a 4-Trident, 2-season, 700-bed village comprising several clusters of chalets at the foot of the Via Lattea Olympic ski area.
- Belek (Turkey), near Antalya, will be a 4-Trident village with more than 900 beds. Scheduled to open in March 2013, the village will be operated under a management contract.
Several other development projects are underway:
- A second village in the Maldives. Operated under a management contract, this year-round 4-Trident village with a 5-Trident section would open in the winter of 2015.
- Chbika, a 4-Trident village with a 5-Trident section in southern Morocco is planned to open in winter 2015. The village would be developed in partnership with Orascom Development, Caisse de Depot et de Gestion du Maroc and Rolaco and operated under a management contract.
4. Outlook for Summer 2012
At constant
exchange rates Year-to-date, at Past 4 weeks
2 June 2012
Europe +3.1% -2.7%
Americas +10.1% +1.5%
Asia +1.9% (1) +2.5%
—— ——
Total +3.5% -1.1%
——- ——
Summer 2012
capacity -2.9%
—— ——
(1) Excluding the impact of Lindeman Island, Asia is up 7.4%.
As of 2 June 2012, bookings for the 2012 Summer season (expressed as business volume at constant exchange rates) were up 3.5% over the prior-year date. At the same date last year, nearly two-thirds of the summer bookings had been recorded. Capacity for the 2012 Summer season has been reduced by 2.9%.
Bookings to date are up in all regions: 3.1% in Europe, 10.1% in the Americas and 1.9% in Asia (7.4% excluding the impact of the Lindeman Island closing).
Trailing four-week bookings are down 1.1% with a 2.7% decline in Europe, partly due to the ongoing market deterioration. The increases of 2.5% in Asia and 1.5% the Americas were led by a more favorable economic environment.
ADDITIONAL INFORMATION
The consolidated financial statements for the six months ended 30 April 2012 were approved by the Board of Directors on 6 June 2012.
The Auditors have performed a limited review of these financial statements and are in the process of issuing their report.
SOURCE Club Med North America
Club Med North America
CONTACT: Media, Caroline Bruel, +33 (0)1 53 35 31 29, .(JavaScript must be enabled to view this email address); Analysts, Pernette Rivain, +33 (0)1 53 35 30 75, .(JavaScript must be enabled to view this email address)