- Current operating income up 52%1,
benefiting from robust growth in the contribution from tourism
activities (x 4).
- Cash generation of almost €50
million.
Regulatory News:
This press release presents consolidated earnings established
under IFRS accounting rules, currently being audited and closed by
Pierre et Vacances SA (Paris:VAC) Board of Directors on 22 November
2016.
I. Main events during 2015/2016
Financial structure
Refinancing
On 14 March 2016, the Pierre & Vacances-Center Parcs Group
signed with its bank partners a new revolving credit line of €200m,
refinancing the syndicated loan due to mature in 2019 ahead of
schedule.
This operation provided the Group a confirmed credit line,
reimbursable on maturity, of a higher amount than that remaining on
the previous amortisable syndicated loan (€142.5 million on 30
September 2016) and at a lower rate. Maturity has been extended to
2021, later than maturity on the ORNANE bonds due in 2019.
First bond issue on the European private placement
market
On 19 July 2016, the Pierre & Vacances-Center Parcs Group
issued bonds in the form of an unlisted Euro PP private placement.
The €60 million issue is due to mature in December 2022, has a
coupon of 4.25% and was subscribed by French institutional
investors.
This operation enabled the Group to optimise its financial
structure by staggering its debts and diversifying financing
sources.
Strategic partnership with HNA Tourism Group
On 30 March 2016, Chinese group, HNA Tourism subscribed to a
reserved rights issue representing 10% 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, S.I.T.I, the holding company
controlled by Gérard BREMOND, owns 39.83% of the capital and 56.42%
of the voting rights of Pierre et Vacances SA2.
The stake taken by HNA Tourism Group in the capital of Pierre et
Vacances SA comes under the framework of the partnership agreements
signed on 6 November 2015, aimed at developing tourism destinations
in China adapted from the Center Parcs and Pierre & Vacances
concepts.
Progress in development projects
The Pierre & Vacances-Center Parcs and HNA Tourism Groups
signed letters of intent, on 4 July 2016, for the acquisition of
three plots of land located near Shanghai and Beijing, and on 18
November 2016 for an additional land on the seaside in the South of
China.
At the same time, agreements were concluded with three major
Chinese retailers, Ctrip, Caissa, and Tuniu.com. As such, 15 French
destinations belonging to Pierre & Vacances, Center Parcs and
Adagio are to be marketed to Chinese tourists. The first tourism
reservations have since been made.
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 distribution of holiday rentals in
France and Spain.
The integration of this company should enable Maeva.com (online
distribution platform and rental management for third parties) to
accelerate its ramp-up by multiplying its tourism offering by 10
and provide a global portfolio of 25,000 accommodation units
(tourism residences, holiday villages, homes, villas, campsites,
chalets, hotels, apartments belong to individuals). By 2020,
Maeva.com aims to distribute 50,000 references.
By providing a unique and fully integrated offering in the
management of apartments and homes, optimised marketing and onsite
operation, Maeva.com is positioning itself as a top-notch player in
the B2C and C2C holiday rental markets.
Center Parcs development projects
Financing of the extension of the sixth German Center Parcs
in Allgäu (Baden Württemberg)
Under the framework of the European diversification of its
real-estate investment trusts, on 11 March 2016, the "La Française"
Group acquired 250 cottages at the future German Center Parcs in
Allgäu, as well as the accompanying leisure facilities.
This acquisition rounds out that of the Eurosic Group in
November 2015, for 750 cottages and the central recreational
facilities at the domain.
The domain is due to open at the end of 2018.
Development projects in Spain
In December 2015, Eurosic's Spanish subsidiary signed a
framework agreement with the Pierre & Vacances-Center Parcs
Group to acquire tourism sites, entrust their operation to the
Pierre & Vacances-Center Parcs Group and then sell them on to
individual customers.
As part of this agreement, in early April, the Pierre &
Vacances-Center Parcs Group sold 166 apartments that it owned at
the Manilva site.
II. Revenue and income for the full-year 2015/2016 (1
October 2015 to 30 September 2016)
IFRS 11 "Joint Arrangements", 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.
A. Revenue
Euro millions
2015/2016 2014/2015 Evolutions
Evolution on a same-structure basis
(*)
Accommodation turnover evolution excluding
stock effects (**)
Tourism 1,253.4 1,180.7 +6.2%
+5.0% - Pierre & Vacances Tourisme Europe 609.4 594.5
+2.5% +0.3% - Center Parcs Europe 644.0 586.2
+9.9% +9.9%
o/w accommodation
turnover 811.4 779.9 +4.0% +2.5%
excluding Adagio +6.6% +5.1% - Pierre &
Vacances Tourisme Europe 392.5 401.6 -2.3% -0.3% excluding Adagio
+0.3% +5.8% - Center Parcs Europe 419.0 378.3
+10.8% +4.7%
Property
development 170.8 255.6 -33.2%
Total
Full Year 1,424.2 1,436.3
-0.8% -1.7%
*Adjusted for the impact of the
acquisition on 13 April 2016 of "La France du Nord au Sud", a
recognised player in the online distribution of holiday rentals in
France and Spain.
** Adjusted for the impact on
accommodation revenue:
- of the net reduction in the network
operated in the PVTE division, due to the non-renewal of leases and
withdrawals from loss-making sites,
- the opening of the Center Parcs Bois aux
Daims domain (as of July 2015)
- Revenue from the tourism business
totalled €1,253.4 million, up 6.2% (+5% same structure basis)
relative to the year-earlier period, in a French backdrop
nevertheless affected by terrorist threats and attacks.
Accommodation revenue rose 4.0% (vs. +2.2% in 2014/2015),
driven by an increase in net average letting rates (+2.9%) and the
number of nights sold (+1.1%). Adjusted for supply effects and
Adagio, revenue growth totalled 5.1%.
International customers accounted for 54% of the Group's
accommodation revenue, up 3.4% relative to the previous year (vs.
+4.8% for French customers).
- Pierre & Vacances Tourisme Europe generated revenue
of €609.4 million, including €392.5 million in accommodation
revenue.
All destinations contributed to revenue growth except for city
residences, with a 5.8% increase excluding supply effects: +4.9% at
seaside destinations, benefiting from robust growth at Spanish
residences, +6.6% in mountain residences and +10.3% for villages in
the French West Indies. In contrast, the city residence business
suffered over the year from the impact of the terrorist attacks in
Paris and Brussels (6.7% decline in revenue over the brand's entire
scope).
- Center Parcs Europe generated turnover of €644.0 million,
including €419.0 million in accommodation revenue, up 4.7%
excluding the Domaine du Bois aux Daims (which contributed €22.8
million to accommodation revenue). This growth was driven by the
Center Parcs domains located in the Netherlands, Germany and
Belgium (+6.8%) and slight growth in the French domains
(+0.5%).
Supplementary income rose by 10.3%, benefiting in
particular from the integration of the "La France du Nord au Sud"
business (€15.2 million over the period). On a same-structure
basis, growth stood at 6.8%, with good performances by
leisure and catering activities in the Center Parcs domains and
Pierre & Vacances marketing mandates.
- Property development revenue
totalled €170.8 million, in line with forecasts for the phasing of
property development programmes.
Property development revenue was primarily driven by the
contribution from Villages Nature (€20.6 million), the sale of the
Manilva site to Eurosic (€20.3 million), the extension of the
Domaine des Trois Forêts in Moselle-Lorraine (€15.4 million) and
the Seniorales residences (€64.2 million). In 2014/2015, property
development revenue included a significant contribution of €110
million from the Center Parcs Domaine du Bois aux Daims, delivered
in July 2015.
Property reservations by individual investors over the
year represented revenue of €329 million (1,491 units), a sharp
increase on the year-earlier level (€218 million for 1,109 units).
This was driven by the success of Villages Nature as well as the
development of sales to individuals of Center Parcs cottages in the
Dutch and German markets.
B. Income
Euro millions
2015/2016
2014/2015
adjusted (1)
Revenue 1,424.2 1,436.3
Current operating
income 32.4 21.3 Tourism 25.1 6.2
Property Development 7.3 15.1 Financial expenses
-18.8 -18.3
Current income before taxes
13.6 3.0 Other operating income / (expense)
net of tax -6.1 -3.8 of which cost of early redemption of the
syndicated loan -1.1 Share of net profit in joint-ventures 0.6 0.3
Taxes -9.8 -12.1
Net income before the change in
the fair value of ORNANE -1.8 -12.6
Change in the fair value of ORNANE -5.7 1.2
Net income
-7.5 -11.4 Attributable to the owners of the Company
-7.4 -11.5 Non-controlling interests -0.1 0.1 (1)
Adjusted for the impact of the IFRIC 21 interpretation on the
audiovisual licence fee paid by the Group (+€0.1m on earnings).
Current operating income: €32.4 million, or a 52%
increase
- Current operating income from the
tourism businesses totalled €25.1 million, showing a hefty €19
million increase on the year-earlier period.
The amount reflected growth in revenue excluding supply effects
(+€17 million), the positive impact on the net contribution from
the reduction in stocks at Pierre & Vacances Tourisme Europe
under the framework of lease renewals (+€7 million) and the
operation/annualisation of business from the new residences and
domains (+€4 million). These gains were higher than the impact of
inflation on costs (estimated at -€9 million).
- Current operating income from property
development activities totalled €7.3 million (compared with €15.1
million in 2014/2015), due in particular to revenue evolution.
This pointed to a margin of 6% of revenue adjusted for the
impact of the sale to Eurosic of the Pierre & Vacances
residence in Manilva in Spain for €20.3 million, generating a
capital loss on disposal of -€1.7 million.
In all, current operating income rose by 52% to €32.4
million.
Net income:
- Other operating income and expense net
of tax primarily included the following non-recurring items:
- €4.3 million in restructuring costs and
closures of loss-making sites.
- €1.1 million in costs for the early
redemption of the syndicated loan set up in February 2014.
- Before taking into account the change
in fair value of the ORNANE bond share allocation right (€5.7
million expense), net income stood at - €1.8 million,
an 86% improvement relative to the year-earlier period
(-€12.6 million).
C. Net debt
Euro millions
09/30/2016
09/30/2015 Evolution Gross debt 294.3 270.5 +
23.8 Cash and cash equivalents (net of credit balances / drawn
revolving) -87.4 -39.6 - 47.8
Net debt
206.9 230.9 - 24.0
including net bank debt 103.4 125.2 - 21.8 including rental
commitments - Ailette facilities 103.5 105.7 -
2.2
The Group's net debt was down by €24.0 million relative to the
previous year, benefiting in particular from growth in tourism
operating performances and the entry of Chinese group HNA Tourism
into the capital of Pierre et Vacances SA.
The net cash position stood at €87.4 million, up by almost
€50 million relative to 30 September 2015.
This debt reduction helped improve the net banking debt/equity
ratio, which stood at 27% on 30 September 2016 vs. 34% on 30
September 2015.
Euro millions
09/30/2016
09/30/2015 (*) Net bank debt 103.4 125.2 Equity 378.9
364.2
Net bank debt / Equity 27%
34% (*) Adjusted for the impact of the IFRIC 21
interpretation on the audiovisual licence fee
III. Outlook
A. Tourism reservations to date
In view of the portfolio of reservations to date, revenue in the
tourism businesses should grow during Q1 2016/2017, driven by
business at all of the Center Parcs destinations and healthy
performances from the seaside destinations in France and Spain, for
Pierre & Vacances Tourisme Europe.
B. Events after closing
Development projects at the Plagne Aime 2000 station
Pierre & Vacances, as planner, developer and operator, and
architects Wilmotte & Associés, have been chosen to develop a
New Tourism Unit to create the fifth generation resort at the
Plagne Aime 2000 site.
This project breaks down into three tranches:
- A Pierre & Vacances Premium
residence with 120 apartments, with upscale services and leisure
areas (swimming pool, solarium etc.).
- A Pierre & Vacances Family
residence with 370 apartments, a water park, a shopping mall,
seminar rooms and a panoramic restaurant.
- A "Folie Douce" hotel with 160 rooms,
with a wellness area including a spa and a party area including a
nightclub.
Delivery of the first tranche is expected for winter 2019.
Tourism management of the Villages Nature project
Sharing the same objective to make Villages Nature an
eco-tourism destination on a European scale, the two partners, Euro
Disney S.C.A. and Pierre & Vacances – Center Parcs announced on
21 October 2016 that they would entrust commercial and operating
management by mandate to a subsidiary of the Pierre &
Vacances-Center Parcs Group.
Shared governance of the joint company remains unchanged.
Center Parcs Roybon project in the Isère region
The project for a Center Parcs in the commune of Roybon
(Isère) has been opposed by a number of associations.
On 22 November 2016, the Lyons Appeals Court decided to set a
new date for the examination of the dispute over the Water Law and
Protected Species decrees that has yet to be decided.
C. Strategic focuses
Since 2012, growth in the Group's operating income has testified
to the relevance of its strategic focuses despite a difficult
economic backdrop and competitive environment.
Concerning the tourism businesses, the Group is set to
continue its growth and differentiation strategy, based on:
- Moves upscale in accommodation and
services, with an enhanced offering that is more flexible and
better segmented in order to counter competition from the
"collaborative" economy.
- Simplifying and digitalising the
customer journey.
- A careful revenue management policy
aimed especially at increasing prices in the peak season and
capturing additional volumes in periods of lower demand.
- Accelerating the diversification of
economic models, with a strengthened positioning in tourism
distribution activities and rental management via Maeva.com, and
the international expansion of destinations with the development of
marketing contracts for partner residences.
Meanwhile Property development is set to provide leverage
to growth in the tourism offering in both qualitative and
quantitative terms via:
- The development of new destinations for
Center Parcs, Villages Nature, Pierre & Vacances premium and
Adagio.
- The ongoing renovation of existing
Center Parcs in Germany, the Netherlands and Belgium by selling on
renovated cottages to individual and institutional investors.
- Development projects in Spain and
China.
IV. Reconciliation table – IFRS income
statement
(Euro millions)
FY 2015/2016
operating reporting
Change inthe fairvalue ofORNANE
Cost ofearlyredemptionof
thesyndicatedloan
Tax on otheroperatingincome /expense
AdjustmentsIFRS 11
FY 2015/2016
IFRS
Revenue 1 424.2
- 51.6 1 372.6
Current operating income
32.4
+9.5 41.9 Other operating income/expense
- 6.1 + 1.1 - 0.2 +0.8
- 4.4 (*) Financial items - 18.8 - 5.7
- 1.1 - 0.1 - 25.8 Share of net profit
in joint-ventures 0.6
-6.1 -5.5 Taxes - 9.8
+ 0.2 - 4.1 - 13.7 Change in the
fair value of ORNANE - 5.7 + 5.7
(**)
NET INCOME -
7.5 0.0 0.0 0.0 0.0
-
7.5
(*) gross of tax
(**) the change in the fair value of
ORNANE is included in the IFRS financial result
(Euro millions)
FY 2014/2015
operating reporting
Change inthe fair valueof ORNANE
Tax on otheroperatingincome /expense
AdjustmentsIFRS 11
FY 2014/2015
IFRS
Revenue 1 436.3 - 53.8
1 382.5
Current operating income 21.3
- 5.1 16.2
Other operating income/expense - 3.8
-1.6 - 5.4 (*) Financial items - 18.3
+1.2 +0.2 - 16.9 Share of net
profit in joint-ventures 0.3
+2.8 3.1 Taxes - 12.1
+1.6 +2.1 - 8.4 Change in the fair value of ORNANE
1.2 -1.2 (**)
NET INCOME(1) - 11.4 0.0 0.0
0.0
- 11.4
NB : 2014/2015 P&L is adjusted for the
impact of the IFRIC 21 interpretation on the audiovisual licence
fee paid by the Group (+€0.1m on earnings).
(*) gross of tax
(**) the change in the fair value of
ORNANE is included in the IFRS financial result
Information on 2015/2016 results includes this press release as
well as the presentation available on the Group's website:
www.groupepvcp.com
1 The income statement items commented on is this press release
stem from operating reporting, with the presentation of joint
ventures under proportional integration.
2 Based on capital prior to the operation made up of 8,821,551
shares representing 12,856,840 voting rights (data on 29 February
2016).
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161123005699/en/
Investor 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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