MIAMI, March 13, 2012 /PRNewswire/ -- At the Annual General Meeting, Club Mediterranee Chairman and Chief Executive Officer Henri Giscard d'Estaing said:
"Club Med continued its growth and was structurally profitable in 2011. We gained 130,000 upmarket customers in the 4 and 5 Trident segment while posting record high customer satisfaction rates. We increased our market share and experienced growth in new vacation markets that are developing around the world.
First-quarter 2012 saw a further increase in business and customers gains in the upmarket 4-5 Trident segment despite a downturn in the economic and tourism environment in Europe."
Commenting on Club Med's performance in North America, President and Chief Executive Officer, Xavier Mufraggi said:
"Club Med's continued growth and success is a clear pillar illustrating that the iconic brand is back. In the first Quarter of 2012 Club Med has accomplished major innovations and renovations in properties around the globe reinforcing our international positioning.
"Now more than ever, Club Med offers North American guests unique experiences worldwide, unlike any other brand, including the recently renovated Phuket in Thailand, located along one of the finest beaches in the world and the successful launch of Valmorel, our latest ski resort in the French Alps. In the North American zone, Club Med continues to provide unique offerings for guests, including the only all-inclusive family resort in the U.S., Club Med Sandpiper Bay in Florida. The property recently opened the first and only L'Occitane Spa in the U.S., completing a one-of-a-kind wellness experience for guests.
"In addition to enriching the resort portfolio, we continue to enhance the customer experience with just launched iPad and iPhone apps in the U.S. market to better accommodate today's consumers in the digital space."
1. Business performance
- Villages business volume (corresponding to total sales regardless of village operating structure) totaled euro 361 million in first-quarter 2012 (1 November 2011 to 31 January 2012), a 4.5% rise from the prior-year period.
- Consolidated revenue amounted to euro 358 million, compared with euro 337 million in first-quarter fiscal 2011. For 2012, this represented an increase of 6.0% as reported, following a 14.6% increase in the previous-year period.
- Villages revenue at constant exchange rates was up 4.5% compared with first-quarter 2011, reflecting the net gain in customers and a rise in the average price as well as stronger growth in transportation revenue, which contributes a lower margin.
- Capacity rose by 2.9%. The opening of Valmorel (France), a full winter season at Sinai Bay (Egypt) and expanded capacity at Sandpiper Bay (Florida) led to a 3.2 point increase in 4-5 Trident village capacity, which accounted for 75% of the first-quarter total capacity.
- The number of customers rose by nearly 5% (representing an additional 13,000 customers) compared with first-quarter 2011. The increase came to almost 9%, or 18,000 additional customers for the most upmarket villages (4 and 5 Tridents), which accounted for 77% of customers for the period.
2. First-quarter highlights
- A stronger balance sheet
- euro 100-million medium-term line of credit renewed under improved terms
Club Mediterranee signed an agreement with its banks to extend the maturity of its euro 100-million medium-term line of credit by two years to December 2014. What's more, the Group leveraged its improved financial position to negotiate more favorable terms.
- Disposal of the Aspen Park Hotel in Meribel
Club Mediterranee sold the Aspen Park Hotel in Meribel for euro 20 million. The Group however intends to maintain its presence in this prestigious ski domain, thanks to its two other villages there – Le Chalet and L'Antares.
- Continuing to move the village portfolio upmarket
- Successful opening of the new Valmorel village
On 9 December 2011, Club Mediterranee inaugurated the Valmorel village in France's Savoy Alps, which offers a full range of upmarket comfort categories, including a 4 and 5 Trident village and chalet-apartments. Valmorel is a latest-generation bi-seasonal village that illustrates a new phase in Club Mediterranee's development.
- Recent developments: 2 upmarket villages operated under management contracts
- Guilin, located in Guanxi Province in southern China, will be Club Mediterranee's second village in the country. An agreement was signed last November with China's ChinaPaoShan Group that calls for the pre-opening of a village in August 2012. A program to expand capacity will begin next winter to prepare for the village's year-round opening in spring 2013.
- An agreement was signed to operate a village in Belek, Turkey, near Antalya. The first year-round 4-Trident village in Turkey, it will feature an outstanding golf course, a Spa Carita wellness offering and a full range of supervised activities for children (from Baby Club to Passworld for teenagers). The village will open in spring 2013.
- Exit of villages that no longer comply with upscale positioning
Finalizing upscale strategy of its portfolio of villages, Club Med closed two 3 Trident villages in January: Coral Beach in Israel and Lindeman in Australia.
- New phase of construction for luxury villas and chalet-apartments
The Group is continuing to build its luxury villas in Albion (Mauritius). A third phase comprising five new three and four-bedroom villas will be delivered for summer 2013.
At the same time, the second phase of construction of chalet-apartments in Valmorel has been launched with 19 new units. Delivery is scheduled for the 2012 Christmas holidays.
3. Shareholding structure
After almost two years of cooperation between Fosun and Club Mediterranee, Fosun indicated that it wishes to renew its confidence in the development of Club Mediterranee and its intent to remain one of the company's largest and long term shareholders.
In this context, Fosun would undertake not to exceed 10% of CM's Share Capital on a fully diluted basis (taking into account the conversion of all ORANE bonds issued by Club Mediterranee) until the annual shareholders' meeting to be held in 2013 to approve the 2012 financial statements. This undertaking is subject to no other shareholder having more (or expressing the intention to have more) than 10% and can be waived with the prior approval of Club Mediterranee board of directors.
This undertaking is submitted to the authorization of the board of directors of Club Mediterranee.
As of 3 March 2012, bookings (expressed as business volume at constant exchange rates) were up 3.7% over the prior-year date.
Asia benefited from sustained 40% growth in China but was impacted by the Japanese market, which has not yet returned to levels before the Fukushima events, and by the closing of the Lindeman village for the Australian market.
The Americas, decreasing by 7.4% over the past 8 weeks, is impacted by Carnival phasing in Brazil.
In Europe, bookings over the past eight weeks have benefited as forecast from favorable prior-year comparatives since early February, one year after the first events of the Arab spring.
Spurred by an assertive early booking policy, summer 2012 sales are off to an encouraging start. At the same date last year, bookings represented approximately one-third of the summer season.
SOURCE Club Med