Club Med: 1st Quarter 2010 Revenue
|
|
Club Med: 1st Quarter 2010 Revenue
|
Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2010-03-01
· Increase in bookings over the past 19 weeks up to 16.6% (with a continuing trend toward
last-minute bookings)
- Year to date winter bookings down 7.6% at 20 February 2010 (down 13.6% at 5
December 2009)
· First-quarter fiscal 2010 revenue down 9.5% as reported (compared with a 14% decline in
fourth-quarter 2009)
· Recent developments
- China: Signature of a management contract for the first Club Med resort, a 4-Trident ski
resort in Yabuli, to open in November 2010
- Valmorel (France): Signature of a letter of intent with Caisse des Dépôts and Sofival to
build a 4-Trident mountain resort with a 5-Trident Luxury Space
- Salalah Beach (Oman)
- Sinai Bay (Egypt)
Commenting on Club Méditerranée’s performance in first-quarter fiscal 2010, Chairman and Chief
Executive Officer Henri Giscard d’Estaing said:
“For more than four months now, we’ve seen a solid recovery in winter bookings, with a
trend toward late bookings. Despite the decline in first-quarter revenue, villages operating
income is up and first-half village operating margins should be higher, thanks to our
ongoing productivity program and the new business model.”
Revenue for the first quarter of fiscal 2010 (1 November 2009 – 31 January 2010)
First Quarter(1) Change
Q1 2010 vs. Q1 2009
(in € millions) 2009 2010 Reported Like-for-Like(2)
Europe 224 202 -10.2% -11.1%
Asia 47 42 -9.4% -8.7%
Americas 55 51 -7.2% -8.5%
Total 326 295(3) -9.5% -10.3%
(1) First-quarter fiscal 2009 adjusted in line with IFRS 5; data do not include Club Med World
(2) Comparable exchange rates and scope of consolidation (villas)
(3) Including €2 million in revenue from villa sales
1. Business performance
In the first three months of fiscal 2010 (1 November 2009 - 31 January 2010), consolidated revenue
declined by 9.5% (versus a 14% decline in fourth-quarter 2009) to €295 million. This compared with
€326 million in first-quarter 2009, when the full effect of the global economic crisis had not yet been felt
and revenue rose by a year-on-year 1.9%.
Like-for-like (i.e. excluding the currency effect and revenue generated by the sale of villas), revenue for the
first quarter declined by 10.3%.
Capacity declined by 0.9% with the temporary closing of Cap Skirring for renovation, the delayed opening
of Sandpiper, which was pushed back to 12 December 2009, and the permanent closing of Bora Bora.
2. Highlights
Productivity program to be continued in 2010
Cost-cutting measures deployed in 2009 are being pursued in 2010, notably the completion of the project
to reorganize the European call center.
Signature of a line of credit
A three-year, €120-million line of credit was signed to replace the current line, which expires in June 2010.
Ongoing upscale strategy with the opening of 5-Trident Luxury Space
First-quarter 2010 saw the opening of 5-Trident areas at Cancun Yucatan in Mexico and Val d’Isère in
France. To support the upscale strategy, deployment of these a luxury spaces (of which there are currently
three with Punta Cana) will continue, with a new area at the Kani village in the Maldives.
3. Recent developments
China: signature of a management contract for a 4-Trident resort in Yabuli, scheduled to open in
November 2010
Club Med has decided to expand its presence in upscale resorts in China with the opening of five villages
between 2010 and 2014.
The first village, located in Yabuli in northern China, will be a ski village dedicated to families, couples and
seminars. It is comprised of two new hotels with 284 rooms, of which 27 suites. Club Méditerranée will
manage and market the village through a ten-year renewable contract and cover the cost of aligning the
hotels with the brand’s standards for a maximum investment of $3 million.
France: signature of a letter of intent with Caisse des Dépôts and Sofival to create a new mountain
resort in Valmorel in the French Alps (Savoie)
Representing an investment of €86 million, this project will comply with France’s HQE environmental and
energy standards and break new ground in terms of job creation and staff accommodation. Comprising
418 rooms, including a 5-Trident Luxury Space with 24 suites, the village has been designed to serve as
the flagship of Club Med’s upmarket snow village offering. Construction is expected to begin in May and
the opening is scheduled for late 2011.
Sultanate of Oman: signature of an agreement to open a 4-Trident resort with a 5-Trident Luxury
Space
On 11 January, Club Méditerranée signed an agreement with Muriya (30%-owned by the Sultanate of
Oman and 70%-owned by Orascom) for the opening in late 2012 of a 366-room, 4-Trident family resort
with a 5-Trident Luxury Space. To be located in Salalah Beach, the village will be Club Med’s first on the
Arabian peninsula and will be operated under a management contract.
|
|
