|By PR Newswire||
|December 7, 2012 05:25 PM EST||
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.
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.
1 CETO : Cercle d'Etudes des Tours Operateurs (French Tour-Operators Association)
SOURCE Club Med
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
May. 26, 2016 02:00 PM EDT Reads: 2,217
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
May. 26, 2016 01:30 PM EDT Reads: 2,947
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
May. 26, 2016 01:00 PM EDT Reads: 1,310
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
May. 26, 2016 01:00 PM EDT Reads: 1,060
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
May. 26, 2016 12:45 PM EDT Reads: 1,849
18th Cloud Expo, taking place June 7-9, 2016, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some...
May. 26, 2016 12:45 PM EDT Reads: 3,010
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
May. 26, 2016 12:45 PM EDT Reads: 1,985
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
May. 26, 2016 12:00 PM EDT Reads: 1,999
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
May. 26, 2016 11:45 AM EDT Reads: 2,185
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
May. 26, 2016 11:30 AM EDT Reads: 964
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
May. 26, 2016 11:15 AM EDT Reads: 2,475
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
May. 26, 2016 10:45 AM EDT Reads: 1,080
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
May. 26, 2016 10:45 AM EDT Reads: 2,696
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
May. 26, 2016 10:00 AM EDT Reads: 1,237
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
May. 26, 2016 10:00 AM EDT Reads: 2,033
SYS-CON Events announced today that 24Notion has been named “Bronze 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. 24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to con...
May. 26, 2016 10:00 AM EDT Reads: 1,763
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
May. 26, 2016 08:45 AM EDT Reads: 1,739
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
May. 26, 2016 07:45 AM EDT Reads: 1,850
SYS-CON Events announced today Object Management Group® has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
May. 26, 2016 06:15 AM EDT Reads: 2,313
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
May. 26, 2016 05:45 AM EDT Reads: 2,669