Welcome!

Microsoft Cloud Authors: Srinivasan Sundara Rajan, Pat Romanski, Glenn Rossman, Janakiram MSV, Steven Mandel

News Feed Item

A Year of Growth for Club Med in 2012 despite a challenging environment in Europe

2012 Annual Results

MIAMI, Dec. 7, 2012 /PRNewswire/ --

- Business volume     up 3.7% to €1,515 million
- 4 and 5 Trident customers     up 7% increase [+ 57,000 ]
- Operating Income Villages     up 1% to €62 million
- Net income before tax and non-recurring items     up 7.3% to €35 million
- Net result     €2 million
- Gearing     -10 points at 23%
- Free cash flow     up 45% to €55 million

Xavier Mufraggi, CEO of Club Med North America, comments on the fiscal 2012 results as a reflection of Club Med's success in the U.S. saying:

"Club Med North America is pleased to announce another profitable year in 2012, with our best results in more than 10 years despite a challenging market, illustrating the success of a change in business model that aligns with an upscale and family-focused strategy.

The success of the renovation of Sandpiper Bay in Florida is one of the key elements in Club Med North America's impressive performance. The resort surpassed expectations and illustrates the importance of having an all-inclusive family resort in the U.S. Sandpiper Bay was not the only resort responsible for our growth, and even despite challenges in the market, the region has also garnered more sustainability through an increase in brand loyalty, and an acceleration of new guest recruitment in resorts worldwide (including ski destinations and additional group bookings.)

Club Med continues to keep a pulse on the industry in order to offer today's travelers an unparalleled and dynamic vacation experience at more than 80 locations around the world. 

For 2013, we will continue to invest in our portfolio by opening new resorts in Pragelato Vialattea, Italy, Belek, Turkey and Guilin, China, while also renovating current properties in Rio Das Pedras, Brazil and Cherating Beach, Malaysia. Specifically in North America, we will continue to focus on our points of differentiation vs. the competition. For example, we will reinforce the positioning of our sports offering through a new concept surrounding "Active Vacations" set to launch at our Sandpiper Bay property. To further strengthen our positioning as the leader in unique children's offerings, this spring Club Med will introduce the most competitive pricing for children in the market by extending our kids under 2 stay free to kids under 4.

In response to the increased interest from American and Canadian customers in our unique ski product, Club Med has prospective plans to open a new ski resort in North America. Our brand already has 50 years of experience in ski vacations and 23 ski properties worldwide with high occupancy rates and an outstanding level of guest satisfaction.

We are confident in the North American market and look forward to upcoming projects and new growth."

Commenting on the annual results, Henri Giscard d'Estaing, Chairman and Chief Executive Officer, noted that:

"Club Mediterranee's reported an increase in revenue for fiscal 2012 despite accelerating deterioration of the European tourist markets during the summer. Thanks to its powerful positioning on the upscale market, the Group was able to protect its margins and demonstrate the resilience of its business model.

Club Med is now in a position for a new step forward in the deployment of its international expansion strategy, by leveraging its stronger financial position, its upscale portfolio of villages and the ability to interface one-to-one with customers through direct distribution network.

Club Med is positioned to capture growth in the market of all-inclusive upscale vacation packages in order to get by the end of 2015 one in three customers to come from fast-developing economies."


1.   A year of growth in 2012 despite worsening market conditions in Europe

 -- Key figures for fiscal 2012 (1 November 2011 - 31 October 2012)

  • Village business volume (corresponding to total sales regardless of village operating structure) rose by 3.7% to €1,515 million from €1,461 million in fiscal 2011.
  • Village revenue totaled €1,447 million, up 2.2% with increases of 2.8% in the Europe-Africa region (of which +2.5% in France in a market declining by 2.6% according to CETO1) and 4.5% in the Americas region. In Asia, revenues dipped 2.6% due to the sale of the Lindeman Island village in Australia. Excluding Lindeman Island, revenue from the region was up 2.8%, helped by a 24% rise in the number of Chinese customers during the fiscal year.
  • RevPAB (revenue per available bed) at constant exchange rates was 2.1% higher, at €99.3, versus €97.3 in fiscal 2011, reflecting a 1.8% improvement in the average price per hotel day to €139,3 and a one-point rise in the occupancy rate to just under 69%.

 -- Profitability preserved attesting to the business model's robustness.

  • EBITDA Villages was stable at €126 million. EBITDA margin stood at 8.7%, close to the 9% target announced last June.
  • Operating Income Villages rose to €62 million from €61 million in fiscal 2011, lifted by higher contributions from the Americas and Asia. These two regions now account for over two-thirds of total operating income villages, reflecting the effectiveness of the Group's global strategy.
  • Operating loss from the management of assets amounted to €26 million, with the €32 million cost of closing non-strategic villages partly offset by gains on disposal of the Meribel Aspen Park village and other assets.
  • Other operating income and expense represented a net expense of €14 million, of which restructuring costs accounted for €10 million.
  • Finance cost - net represented €8 million versus €16 million in fiscal 2011. The €47 million reduction in average net debt led to interest savings of €3 million, while profits on sales of shares and provision reversals had a positive impact of €4 million.
  • Net income before tax and non-recurring items rose slightly to €35 million after quadrupling in fiscal 2011. Attributable net profit was stable at €2 million.
  • The Board of Directors meeting held on 6 December approved the 2012 financial statements. It also indicated that it would like for shareholders to benefit from the Company's improvements. This could be done through purchase of shares to be cancelled under the shareholder buyback program which will be submitted at the Annual Shareholder Meeting.  Due to the lack of visibility on the fiscal 2013 earnings, in the currently worsening economic environment and declining European tourist market, the Board believes that this option is preferable to paying a cash dividend for fiscal 2012.

 -- Club Med has three major strengths to help it withstand the challenging environment in France and the rest of Europe

  • A strong financial position, with growing positive underlying free cash flow. In fiscal 2012, free cash flow stood at €55 million compared with €38 million the previous year, or €36 million versus €26 million excluding the impact of asset disposals and village exit costs.  In addition, net debt is significantly lower at €118 million, reflecting a 10-point improvement in gearing to 22.6%, while the ratio of net debt to EBITDA villages has improved considerably and now stands at less than 1x. It was divided by two since 2010.
  • A fully refurbished, upscale village offer, with 4 and 5-Trident villages representing two third of total capacity at 31 October 2012, a 3.6-point increase over one year. Three villages were sold during the year (Meribel Aspen Park, Lindeman Island and Bora-Bora) and five non-strategic villages were closed (Smir, Coral Beach, Djerba Meridiana, Beldi and Nabeul).

The Valmorel village in France that was opened last December has confirmed the validity of the Group's strategic positioning in the uscale and very upscale segments. With an occupancy rate of 81% in its first year, the new village attests the leading position of Club Med's mountain village offer, even in the summer.

  • Tighter customer relations, with over 60% of sales carried out directly. Online bookings have continued to grow, accounting for 20.5% of sales in fiscal 2012.

2.   Fiscal 2013 outlook

 -- A slightly growing Winter 2013, led by demand in the Americas and Asia.

As of 1 December, winter 2013 bookings (business volume at constant exchange rates) were up 1.1% on the prior-year season. In 2011, bookings at that date represented two-thirds of the winter total.

Bookings in the Europe-Africa region were down 0.8%. In France, Club Med Business bookings that reached records last year were down, while the individuals were up +1.2% in business volume. This figure translate in number of customers to a -3.1%, while the market is down 10.3% at the end of October, according to France's tour operators organization CETO.

Bookings in the Americas and Asia were up by 7.2% and 5.0% respectively, lifted by the more favorable economic environment in these regions and, in particular, by the dynamism of Brazil, China and other fast-developing markets.

Bookings for the past four weeks were down 0.6% with a drop of 5.1% for the Europe-Africa region, partly offset by booking that are up in Americas and Asia.

 --  The uncertain environment calls for prudence in 2013

In light of the sluggish economic environment in Europe, particularly France, the following measures have been taken:

  • Winter 2013 capacity has been adjusted by 3.7% compared with winter 2012. In Europe-Africa, closure of Meribel Aspen Park and Coral Beach along with temporary shutdowns of certain villages in North Africa have led to a 5.4% capacity reduction. For the summer 2013 season, Europe-Africa capacity has been shrunk by 6.2% in response to the uncertain economic environment.
  • Capital spending will be kept at the fiscal 2012 level of around €55 million and will concern both ongoing projects to move the village offer upscale and necessary maintenance work. In addition, a further €10 million or so may be spent on acquiring equity interests to speed up the pace of growth in certain high potential markets such as Brazil and Russia.
  • Costs reported under "Operating loss from the management of assets" should be considerably lower than in fiscal 2012 now that the program to move the village offer upscale is nearing completion.

Based on the above outlook, the Group should report positive free cash flow in fiscal 2013.

3.   2015: a new milestone in Club Med's global strategy to capture growth in the all-inclusive upscale vacation package market

 -- Step up the pace of growth in fast-developing markets

With growth set to remain strong in major high potential markets such as China, Brazil and Russia, Club Med is aiming for one in three customers to come from fast-developing markets by the end of 2015.

First among these will be China, which will become Club Med's second largest market by 2015 with 200,000 customers, five villages (including Guilin, the country's second 4-Trident village which will welcome its first guests in spring 2013) and a new premium resort hotel brand – by Club Med – aligned with local demand. The "by Club Med" large upscale resort-hotels will target Chinese city-dwellers looking for long weekend breaks in the countryside at relatively short distance from their home. They will also serve the meetings, incentives, conferences and exhibitions (MICE) market.

 -- Continue to win market share in France and other mature markets by strengthening premium distribution, upgrading pricing policies to include a family deal with children under 6 staying free, and offering new products such as new Club Med Discovery tours and new Club Med 2 cruises.

 --  Promote Club Med brand's unique spirit

In early 2013, Club Med will be launching its new worldwide brand advertising campaign to raise its notoriety, recruit new customers and promote repeat bookings.

To speed up the pace of international expansion, new distribution channels are being developed and the Group is targeting a fourfold increase in the number of Club Med shop-in-shops and franchise outlets (from 50 to 200) by the end of 2015.

 -- Optimize the business model

Club Med is taking its upscale strategy a step further, with three-quarters of village capacity set to meet 4 or 5-Trident standards by 2015 including new villages such as Pragelato Vialattea in Italy, Belek in Turkey and Guilin in China that are due to open in 2013. These new destinations will increase the number of year-round permanent villages (or bi-seasonal) with optimum capacity.

In line with the asset-light strategy, most of the current development projects are based on the management contract model, the aim being to improve return on capital employed while also achieving a balance of models for the village portfolio.

Additional information

The consolidated and parent company financial statements of Club Mediterranee for the fiscal year ended 31 October 2012 were approved by the Board of Directors on 6 December 2012.
These financial statements have been audited and the Auditors' reports are in the process of being prepared.
The fiscal 2012 financial results presentation is available for download at http://www.clubmed-corporate.com.  

CETO : Cercle d'Etudes des Tours Operateurs (French Tour-Operators Association)


SOURCE Club Med

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...