2017 Business overview & result

2017 Business overview & result

A STRONG AND DYNAMIC BUSINESS GROWTH IN FRANCE AND GLOBALLY

Woensdag 28 maart 2018 — In 2017, Club Med produced very good performance, growing clients’ number to their highest since 2000 (+6.6%).
Supported by the momentum created by mountain and long-haul resorts, 2018 year is expected to see further success across all Club Med's markets.

 

A profitable growth dynamic

In 2017, at comparable exchange rate, Club Med's 2017 business volume (integrating all of sales whatever is the mode of resort operation) rose +3.8% to €1527 M.

Revenue increased by 4.4 %.

Net income before tax and non-recurring items increased by +20%.

Village operating profits was also up +16.6% and in the black world-wide (Europe-Africa, America and Asia)

The strategy was supported by greater major investment (€86 M) than in 2016. Direct investment was in new resorts, the maintenance of existing resorts and digital.

Investment by Club Med's real estate partners added more than €300 M.

These very good results are the outcome of accelerated implementation of a “upscale/global/Happy Digital” strategy to meet the demands of families - that fall mainly into the 3G (3Generation) and Millennial family groups - and active couples, exploiting Club Med's unique concept.

Strong rise in clients number

With 1, 34 million of clients in 2017, Club Med reported the strongest rise since 2000: +6.6%.

80 % of whom stayed in 4 and 5 Trident resorts.

All areas saw expansion in terms of clients’number:

  • America saw double-digit progress above 2016 at +19.6%  
  • Asia was up at +3.9%
  • Europe-Africa continued to grow at +3.0%

As clients are increasingly booking via the internet, Club Med's Happy Digital innovations (such as its website improvements) have lifted online direct sales 14%.

Mobile is becoming a key booking method, generating almost 45% of traffic. Entirely mobile bookings world-wide were worth almost €23 million in turnover.

A sustained increase in resorts openings

Thanks to new resorts openings, Club Med continued to expand in France and globally.

At the end of 2017, 2 successful new mountain resorts, Tomamu Hokkaido in Japan and Grand Massif Samoëns-Morillon in the French Alps, have been opened.

Since the beginning of 2018, Club Med has already opened 2 Joyview resorts in China: Golden Coast near Beijing and Anji near Shanghai.

In the Caribbean, in Turks and Caicos, Club Med Turquoise has undergone major renovation to become a 4 Trident resort. Located on Grace Bay, which CNN Travel and Trip Advisor voted the most beautiful beach in the world at the start of this year, the resort is mainly aimed at adults, couples and groups of friends.

In Sicily, in the magnificent location of historic Cefalù, Club Med is to inaugurate its first 5 Trident Exclusive Collection Mediterranean resort on June.

Finally, a new mountain resort is to open in next December: Les Arcs Panorama in the heart of Paradiski in the French Alps. This will be a 4 Trident, with an Exclusive Collection Space (5 Trident Space).

In 2019, there are already plans to open a new resort in Marbella in Spain and to give La Pointe aux Canonniers in Mauritius and La Caravelle in Guadeloupe major renovations.

Winter 2018 & Summer 2018 Bookings

At the date :

  • Winter 2018 bookings are currently showing a growth of +9.4% ;
  • Summer 2018 bookings are currently showing double digit growth and represent already nearly half of the current summer business total.

Otherwise, regarding Winter 2019 - which bookings started on 14 March – the new ski resort Les Arcs Panorama and Punta Cana with Creactive by Cirque du Soleil are the best-sellers.

Henri Giscard d’Estaing, President of Club Med, commented Club Med business overview:

"Thanks to growth across all its global markets, a further rise in clients’ number and another sharp increase in profitability, Club Med produced very good performance in 2017.
This is the result of the full support of its shareholder, Fosun, and the implementation of the three-pronged strategy: upscale, global and “Happy Digital”.
2018 year is forecast to do even better in both winter and summer seasons, -    2018 year is forecasted to do even better in both winter and summer seasons, for which bookings to date are significantly up."

Financial year

Club Med is a subsidiary of Fosun International, which is listed in Hong-Kong. Its financial year will therefore now run from 1 January to 31 December. Reports on business is made as part of the financial reports issued by the parent company

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