Club Mediterranee First-Quarter 2011 Revenue

- Consolidated revenue up 14.6% as reported to euro 337m, from euro 295m (US$452m, from US$396m)

- Resort revenue up 9.5% at constant exchange rates

- Net gain in customers in the first quarter: 21,000 additional customers compared with Q1 2010

36,000 additional customers for 4 and 5-Trident Resorts

- Winter bookings up 9.7% at 26 February 2011

Mar 04, 2011, 09:32 ET from Club Mediterranee

PARIS, March 4, 2011 /PRNewswire/ -- Commenting on Club Mediterranee's performance in first-quarter fiscal 2011, Chairman and Chief Executive Officer Henri Giscard d'Estaing said:

"Our first-quarter fiscal 2011 performance reflects the return to growth that we have seen since summer 2010, with a 14.6% increase in revenue and a net gain in customers. For the full winter season, we expect to see another significant rise in Resort operating income, even though events in Tunisia and Egypt could result in an impact of around euro 5 million to euro 8 million."

Commenting on Club Med's performance in North America, President and Chief Executive Officer Xavier Mufraggi said:

"In North America, we have seen good results, which are in-line with the worldwide performance.  This performance also comes from the success of the re-launch of our resort, Sandpiper Bay, Florida, on all its targets: our core target clientele: families, sports enthusiasts (golf, tennis and fitness) thanks to our new Elite Academies, as well as group business with the new renovated business center."

Revenue for the first quarter of fiscal 2011 (1 November 201031 January 2011)



First Quarter

Change
Q1 2011 vs. Q1 2010

(in euro millions)

2010

2011

Reported

At constant exchange rates






Resort revenue

293

337

+15.3%

+9.5%

Europe

200

222

+11.5%

+9.6%

Asia

42

53

+25.9%

+8.5%

Americas

51

62

+21.3%

+10.0%






Property development revenue

2

0

-

-






Total revenue

295

337

+14.6%

+8.9%




1. Business performance

  • Consolidated revenue for first-quarter 2011 (1 November 2010 – 31 January 2011) increased by 14.6% as reported to euro 337 million, from euro 295 million in the prior-year period.

  • At constant exchange rates, Resort revenue rose by 9.5% compared with first-quarter 2010, reflecting the net gain in customers and an increase in the average price.

  • Capacity was up 4.5%, of which 6 points in 4 and 5-Trident Resorts with the opening of the Sinai Bay and Yabuli, the marketing of the Albion villas and the reopening of Cap Skirring following renovation.

  • In the first quarter, the Group recorded a net gain in customers with an overall increase of nearly 9% versus first-quarter 2010, representing 21,000 additional customers. For 4 and 5-Trident Resorts, the increase came to 22%, or 36,000 additional customers for the most upmarket Resorts, which accounted for 74% of all customers.

2. First-quarter highlights

  • Further improvement in operating margin - The first quarter saw a sharp improvement in profitability with Resort EBITDA margin rising by more than two points.

  • Fosun increases its equity stake to nearly 10% - Fosun, the privately held Chinese company, increased its equity investment last November to 2,801,569 shares, representing nearly 10% of Club Med capital and voting rights. The increase reflects Fosun's commitment to supporting Club Med's development in China.

  • Redemption of 2010 OCEANE convertible bonds - The OCEANE convertible bonds issued in November 2004 for euro 150 million were fully redeemed at maturity on 1 November 2010.

3. Continuing to move the Resort portfolio upmarket

  • Recent developments - The first quarter saw the opening of new 4-Trident Resorts – Sinai Bay in Egypt and Yabuli in China – both of which are operated under management contracts. Upgrading from a 3 to 4 Trident resort, Sandpiper Bay in Florida recently underwent a major renovation and re-opened in December 2010. These developments are in line with the objective of having 4 and 5-Trident Resorts account for two-thirds of total capacity by year-end 2012.

  • Exiting Resorts that no longer comply with upmarket standards - As part of the project to exit non-strategic and unprofitable Resorts that represent 6% of total portfolio capacity, Club Med terminated the lease on the 2-Trident Athenia Resort in Greece, which was returned to its owner at end-February, and did not renew the lease on the 3-Trident Resort in Les Menuires, which is to remain in operation through the end of the season.

  • Launch of the Valmorel property program - On 9 February 2011, Club Mediterranee began marketing the first chalet-apartments to be built in Valmorel, the future 4-Trident Resort that will include a 5-Trident Luxury Space.

4. The situation in Tunisia and Egypt

Given recent events in Tunisia and Egypt and in line with recommendations from French authorities, Club Med decided to close Djerba la Douce (the only Tunisian Resort open at this time of the year), as of 15 January, and Sinai Bay, El Gouna (both operated under management contracts) and Luxor in Egypt, as of 28 January.

Club Med has decided to reopen Djerba la Douce and Sinai Bay on 26 February and El Gouna on 5 March 2011.

The around euro 5 million to euro 8 million impact of these events will not preclude another significant rise in Resort Operating income over the winter.

5. Outlook

Winter bookings to date, by outbound market


At constant exchange rates

Year-to-date as of
26 February 2011


Year-to-date as of
4 December 2010(1)


Past 6 weeks
(since 15 January 2011)

Europe

+8.6%


+16.3%


-24,8%

Americas

+13.5%


+13.8%


+17,8%

Asia

+11.6%


+6.3%


+13,5%

Total

+9.7%


+14.7%


-13,6%







Winter 2011 capacity

+1.9%


+4.2%



(1) Presented when the fiscal 2010 results were released on 9 December 2010



As of 26 February 2011, bookings (expressed as revenue at constant exchange rates) were up 9.7% over the prior-year date.

Bookings for the past six weeks integrate the impact on European markets of the end of the early booking period, as expected, as well as the temporary closing of Resorts in Egypt and Tunisia.

Bookings for the 2011 summer season show double-digit growth compared with summer 2010, rising by approximately 25% compared with the same date last year.

APPENDICES


Shareholder structure at 28 February 2011



Number of shares

% of capital held

% of voting rights

Credit Agricole

1,534,697

5.1%

4.9%

Fipar International (CDG Maroc)

2,751,181

9.1%

8.8%

Fosun Property Holdings Limited

2,801,569

9.3%

9.0%

Rolaco

1,282,871

4.2%

4.1%

Total Board of Directors:

8,370,318

27.7%

26.8%

Air France

516,214

1.7%

1.7%

GLG Partners LP

1,563,301

5.2%

5.0%

Fidelity (FIL Investments International)

1,694,530

5.6%

5.4%

French institutions

4,665,830

15.4%

15.1%

Foreign institutions

10,353,801

34.2%

35.8%

Treasury shares

185,376

0.6%

0.6%

Employees

28,730

0.1%

0.2%

Public and other

2,859,576

9.5%

9.4%





Total

30,237,676

100.0%

100.0%



Total shares outstanding and voting rights at 28 February 2011


Date

Shares outstanding

Voting rights

28 February 2011

30,237,676

31,208,460



Website: www.clubmed-corporate.com

SOURCE Club Mediterranee



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