Growth in first-half earnings
- Current operating result up 14.5%1,
driven by a significant improvement in the contribution from
tourism activities (+20%),
- Net result up 14.5%
- Sharp decline in net debt (-€57 million
relative to 31 March 2015)
Regulatory News:
I. Main events in H1 2015/2016
Group refinancing
On 14 March 2016, the Pierre et Vacances-Center Parcs Group
(Paris:VAC) signed a new €200 million revolving credit line to
refinance the syndicated loan due to mature in 2019 ahead of
schedule.As such, the Group now has a confirmed credit line,
reimbursable at maturity, of a higher amount than the remaining
balance of the previous amortisable syndicated loan of €142.5
million on 30 September 2016, and at a lower interest rate.
Maturity has been extended to 2021, later than maturity of the
ORNANE exchangeable bond (2019).
Capital operations
On 30 March 2016, Chinese group HNA Tourism subscribed to a
reserved rights issue representing 10.0% of the capital of Pierre
et Vacances SA post-operation, or 980,172 new shares at a unit
price of €25.18. Following this operation, the holding company
controlled by Mr Gerard Bremond, S.I.T.I, has an individual stake2
in the capital of Pierre et Vacances SA of 39.83% and 56.42% of
voting rights.The stake acquired by HNA Tourism in Pierre et
Vacances SA comes under the framework of the partnership agreement
signed on 6 November 2015 aimed at developing tourism destinations
in China, inspired by the Center Parcs and Pierre & Vacances
concepts.
Acquisitions
Acquisition of "La France du Nord au Sud"
On 27 April 2016, the Pierre et Vacances-Center Parcs Group
announced the acquisition of "La France du Nord au Sud", a
recognised player in the online holiday rental distribution market
in France and Spain.The company's integration enables Maeva.com to
boost its ramp-up by multiplying its tourism product offering by 10
to represent an overall portfolio of 25,000 accommodation units
(tourism residences, holiday villages, homes, villas, camp-sites,
chalets, hotels and individual apartments). By 2020, Maeva.com aims
to distribute 50,000 references.
By proposing a unique and fully-integrated offer ranging from
apartment and home management to optimised marketing and onsite
operation of the accommodation, Maeva.com is therefore positioning
itself as a top-notch player in the B2C and C2C holiday rental
market.
1 The income statement items discussed in this press release
stem from operating reporting, with the presentation of joint
companies on a proportional consolidation basis2 Based on capital
prior to the operation of 8,821,551 shares representing 12,856,840
gross voting rights (data on 29 February 2016).
Center Parcs development/renovation projects
Financing the extension of the 6th German Center Parcs at
Allgäu (Baden Württemberg).
On 11 March 2016, under the framework of the European
diversification of its property investment funds, the La Française
Group acquired 250 cottages and a commercial building housing
accompanying leisure facilities as an extension to the future
German Center Parcs in Allgäu.
This acquisition rounds out that made by the Eurosic Group in
November 2015, concerning 750 cottages and central recreational
facilities at the domain.
The domain is due to open at the end of 2018.
Extension of the Center Parcs des Trois Forêts in
Moselle-Lorraine
On 24 March 2016, the Pierre & Vacances-Center Parcs Group
sold a block of 141 cottages off-plan to MACSF Group making up the
last tranche of the Domaine des Trois Forêts.
The cottages are due to be delivered in summer 2017.
Renovation of the Sunparks Vielsalm domain (Belgian
Ardennes)
Under the framework of agreements concluded with the current
owner of the Vielsam domain, Foncière des Murs, KBC bank acquired a
block of 177 cottages in October 2015 as part of the domain's
renovation. This sale added to the marketing of renovated cottages
to individual investors.
Development projects in Spain
In December 2015, the Spanish subsidiary of Eurosic signed a
framework agreement with the Pierre & Vacances-Center Parcs
Group in order to acquire tourism sites to be operated by Pierre
& Vacances-Center Parcs, followed by their sale to individual
investors.
Under the framework of this agreement, in early April, the
Pierre & Vacances-Center Parcs Group sold 166 apartments that
it owned at the Manilva site.
II. First-half 2015/2016 revenue and results (1
October 2015 to 31 March 2016)
IFRS 11 "Joint Arrangements", applies to the Group as of
2014/2015, and implies the consolidation of joint operations by the
equity method and no longer by proportional integration (Adagio and
Villages Nature partnerships primarily). For its operating
reporting, the Group continues to integrate joint operations under
the proportional integration method, considering that this
presentation is a better reflection of its performance. The income
statement items and sales indicators commented on below stem from
operating reporting. The reconciliation tables with IFRS income
statements are set out in paragraph IV.
Revenue
Euro millions 2015/2016
2014/2015 Evolutions
Evolutions on a
like-for-like basis(*)
Tourism 521.8 476.2
+9.6% o/w accommodation turnover 339.1
311.2 +9.0% +2.4% - Pierre & Vacances
Tourisme Europe 251.4 243.8 +3.1% - Center Parcs Europe 270.4 232.4
+16.3%
Property development 63.8 174.5
-63.5%
Total H1 585.5 650.7
-10.0%
(*) On a like-for-like basis, revenue is adjusted for the impact
of:
- the shift of Easter weekend and part of the Easter holidays
from April in 2015 to March in 2016 (for the majority of German
customers)- the net reduction in the network operated in the PVTE
division caused by lease renewals and the withdrawal from
loss-making sites- the opening of the Bois aux Daims domain (as of
July 2015)
Under IFRS accounting rules, revenue for the first half of the
2015/2016 financial year stood at €559.5 million (€509.5 million
for the tourism businesses and €50.0 million for the property
development businesses) compared with €631.7 million in H1
2014/2015 (€466.4 million for tourism and €165.3 million for
property development).
First half 2015/2016 revenue from the tourism
businesses stood at €521.8 million, up 9.6% relative to H1
2014/2015, with faster growth in the second quarter
relative to the first quarter.
- Pierre & Vacances Tourisme Europe
posted an increase in revenue in all seaside and mountain
destinations (+8.6% growth in like-for-like accommodation revenue,
i.e. excluding the impact of the shift in the Easter holidays and
excluding stock effects, of which respectively +13.1% for the
seaside sites and +6.7% for the mountain destinations). Only the
Adagio residences business was in decline (-5.1%), due to terrorist
attacks primarily in Paris/the Paris region and Brussels.
- Center Parcs Europe benefited from
revenue growth at the Dutch, Belgian and German domains (+4% growth
in like-for-like accommodation revenue), healthy performances at
the new Domaine du Bois aux Daims and a rebound in business at the
other French domains in Q2 (+4.2% lfl).
- Supplementary income also rose sharply
(+10.7%) driven by the success of marketing mandates for Pierre
& Vacances Tourisme Europe, and growth in the leisure and
catering activities for Center Parcs Europe.
H1 2015/2016 property development revenue totalled €63.8
million, stemming primarily from Villages Nature (€12.1 million)
and the Seniorales residences (€27.8 million). The decline in
turnover in H1 relative to the year-earlier period was due to the
phasing of property development programmes (the first half of
2014/15 included the majority of the full-year contribution from
Center Parcs Bois aux Daims, or €96 million).
Property reservations in H1 2015/16 with individual investors
represented revenue of €168.5 million, ahead of that booked in the
first half of the previous year (€124.4 million).
Results
Note: the seasonal nature of the tourism activities in the
first half of the year and the linear accounting of charges result
in a structural operating loss over the period.
Euro millions H1 2015/2016 H1
2014/2015 (1) Evolutions Turnover
585.5 650.7 -10.0%
Current operating result -68.8 -80.5
+14.5% Tourism -73.4 -91.2 Property Development 4.5 10.7
Financial expenses -9.9 -9.3
Current operating result before
taxes -78.7 -89.8 +12.3% Other operating
income / (expenses) net of tax -2.4 -3.1 of which cost of early
reimbursment of the syndicated loan -1.1 Share of net income of
equity-accounted investments 0.3 0.1 Taxes 5.3 4.4
Net
result -75.5 -88.4 +14.5% Change in the
fair value of ORNANE -0.3 0.1
Net result after the change in the
fair value of ORNANE -75.8 -88.3 +14.1%
Attributable to the owners of the Company -75.8 -88.4
Non-controlling interests 0.0 0.1
(1) adjusted for the impact of the application of IFRIC 21
"Taxes levied by a government" concerning the recognition of a
liability for a right or tax due: -€1.2m on the H1 2014/2015
current operating loss and net loss.
14.5% improvement in current operating result
- The current operating loss from tourism
activities stood at €73.4 million, compared with €91.2 million in
the year-earlier period.This stemmed from growth in revenue (+€14
million) and the reduction in rental expenses on lease renewals (€8
million over the period, in line with forecasts). These gains were
higher than the impact of cost inflation (estimated at €4
million).
- Current operating profit from property
businesses stood at €4.5 million.The margin on revenue stood at
7%.
14.5% improvement in net result
- Other income and expense net of tax
primarily included the following non-recurring items:
- € 1.1 million in costs associated
with the early reimbursement of the syndicated loan set up in
February 2014.
- € 1.1 million in costs for
restructuring and closing loss-making sites.
- After taking into account the change in
the fair value of the ORNANE share allocation right (€0.3 million
expense), the net loss stood at €75.8 million, showing an
improvement relative to the year-earlier level (€88.3
million).
Net debt
Euro millions 31 March 2016 31 March
2015 Evolutions Net debt
286.0 343.4 -57.4 of which net
bank debt (1) 181.4 236.8 -55.3 of which rental commitments -
finance lease on CP Ailette facilities 104.6 106.7
-2.1
(1) Net financial debt adjusted for rental commitments for the
facilities at Center Parcs Ailette.
The Group's net debt was down €57 million relative to H1
2014/15, benefiting in particular from the increase in tourism
operating performances and the acquisition of a stake by Chinese
group HNA Tourism in the capital of Pierre et Vacances SA (net
impact of €22 million).
III. Outlook – revenue in the second half
Tourism
In view of the level of reservations to date, the Group is
forecasting Q3 2015/2016 tourism turnover higher on a like-for-like
basis than Q3 2014/2015, with higher growth than in the first half
of the year driven by:
- For Pierre & Vacances Tourisme
Europe, revenue growth excluding stocks driven by both seaside and
mountain destinations,
- For Center Parcs Europe, an increase in
revenue at all domains, even excluding the impact of the new Bois
aux Daims domain.
For the summer period, reservations to date have increased for
the core season at both Pierre & Vacances and Center Parcs.
Property development
Property development revenue in Q3 2015/2016 should be higher
than the level seen in Q3 2014/2015, in line with the expected
phasing of property development programmes.
IV. Reconciliation table – IFRS income
statement
Euro millions
H1 2015/2016operatingreporting
IFRS 11adjustments
H1 2015/2016IFRS
TURNOVER
585.5 -26.0 559.5
CURRENT OPERATING PROFIT (LOSS)
-68.8
4.8 -64.1
Financial income (expense)
-9.9 -0.1 -9.9
CURRENT NET PROFIT (LOSS)
-78.7 4.7 -74.0
Other income and expense net of tax
-2.4 0.1 -2.3
Net profit attributable to joint
operations
0.3 -4.5 -4.3
Tax
5.3 -0.2 5.0
NET PROFIT (LOSS) (1)
-75.5 0.0 -75.5
(1) excluding change in fair value of
ORNANE bond share allocation right
Euro millions
H1 2014/2015operatingreporting (*)
IFRS 11adjustments
H1 2014/2015IFRS
TURNOVER
650.7 -19.0 631.7
CURRENT OPERATING PROFIT (LOSS)
-80.5 -0.7 -81.3
Financial income (expense)
-9.3 0.1 -9.2
CURRENT NET PROFIT (LOSS)
-89.8 -0.6 -90.5
Other income and expense net of tax
-3.1 0.0 -3.1
Net profit attributable to joint
operations
0.1 0.3 0.4
Tax
4.4 0.4 4.8
NET PROFIT (LOSS) (1)
-88.4 0.0 -88.4
(1) excluding change in fair value of ORNANE bond share
allocation right(*) adjusted for impact of first application of
IFRS 11.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160525006028/en/
Pierre et Vacances-Center ParcsInvestor Relations and
Strategic OperationsEmeline Lauté, +33 (0) 1 58 21 54
76info.fin@groupepvcp.comorPress RelationsValérie Lauthier,
+33 (0) 1 58 21 54 61valerie.lauthier@groupepvcp.com
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