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FOSUN TOURISM
wrote a column · Aug 23, 2024 23:13

Fosun Travel & Tourism 2024 Interim Results: Excluding one-time revenue, profit increased 20%

Performance summary: 1) Revenue [1] reached RMB 10.65 billion, up 11% year on year; revenue reached RMB 9.42 billion, up 6% year on year 2) Club Med's performance reached a new high, with a turnover of RMB 8.89 billion, an increase of 10% over the previous year 3) Atlantis Sanya's turnover reached RMB 0.87 billion, with an average occupancy rate of 89.6%, a record high 4) The second phase of the Taicang Alps International Resort project was officially signed, and the implementation of the asset-light strategy welcomed a new milestone August 22, $FOSUN TOURISM (01992.HK)$ (“Fosun Travel & Communications” or the “Group”, stock code: 1992.HK) announced interim results for the six months ended June 30, 2024 (the “period”). During the period, “Club Med and Others”, “Sanya Atlantis”, “Resort Asset Management Center” [2], and “Retreat Club and Related Businesses” (collectively, “Tour Operations”) recorded revenue of RMB 10.65 billion, up 11% year on year; Group revenue reached RMB 9.42 billion, up 6% year on year; adjusted EBITDA was RMB 2.09 billion; profit attributable to shareholders was RMB 0.32 billion, excluding one-time disposal of resort revenue Profit attributable to the Company's shareholders increased 20% over the same period in 2023. Club Med's three major regions performed brilliantly, reaching new record highs...
Performance summary:
1) Revenue [1] reached RMB 10.65 billion, up 11% year on year; revenue reached RMB 9.42 billion, up 6% year on year
2) Club Med's performance reached a new high, with a turnover of RMB 8.89 billion, an increase of 10% over the previous year
3) Atlantis Sanya's turnover reached RMB 0.87 billion, with an average occupancy rate of 89.6%, a record high
4) The second phase of the Taicang Alps International Resort project was officially signed, and the implementation of the asset-light strategy welcomed a new milestone
August 22, $FOSUN TOURISM (01992.HK)$ (“Fosun Travel & Communications” or the “Group”, stock code: 1992.HK) announced interim results for the six months ended June 30, 2024 (the “period”). During the period, “Club Med and Others”, “Sanya Atlantis”, “Resort Asset Management Center” [2], and “Retreat Club and Related Businesses” (collectively, “Tour Operations”) recorded revenue of RMB 10.65 billion, up 11% year on year; Group revenue reached RMB 9.42 billion, up 6% year on year; adjusted EBITDA was RMB 2.09 billion; profit attributable to shareholders was RMB 0.32 billion, excluding one-time disposal of resort revenue Profit attributable to the Company's shareholders increased 20% over the same period in 2023.
Performance summary: 1) Revenue [1] reached RMB 10.65 billion, up 11% year on year; revenue reached RMB 9.42 billion, up 6% year on year 2) Club Med's performance reached a new high, with a turnover of RMB 8.89 billion, an increase of 10% over the previous year 3) Atlantis Sanya's turnover reached RMB 0.87 billion, with an average occupancy rate of 89.6%, a record high 4) The second phase of the Taicang Alps International Resort project was officially signed, and the implementation of the asset-light strategy welcomed a new milestone August 22, $FOSUN TOURISM (01992.HK)$ (“Fosun Travel & Communications” or the “Group”, stock code: 1992.HK) announced interim results for the six months ended June 30, 2024 (the “period”). During the period, “Club Med and Others”, “Sanya Atlantis”, “Resort Asset Management Center” [2], and “Retreat Club and Related Businesses” (collectively, “Tour Operations”) recorded revenue of RMB 10.65 billion, up 11% year on year; Group revenue reached RMB 9.42 billion, up 6% year on year; adjusted EBITDA was RMB 2.09 billion; profit attributable to shareholders was RMB 0.32 billion, excluding one-time disposal of resort revenue Profit attributable to the Company's shareholders increased 20% over the same period in 2023. Club Med's three major regions performed brilliantly, reaching new record highs...
Club Med's three major regions performed brilliantly, reaching new record highs
Club Med's performance reached a record high in the first half of 2024, benefiting from significant growth in the mountain business and a strong rebound in the Asia-Pacific region. Club Med recorded a turnover of RMB 8.89 billion, up 10% from the same period in 2023. The adjusted EBITDA for resort operations increased to RMB 2 billion in the first half of 2024, compared to RMB 1.99 billion for the same period in 2023. Driven by the “upgrade” strategy, the average daily bed price was RMB 1,922 (based on a consistent exchange rate), an increase of 8% over the same period in 2023; the global average room occupancy rate reached 70.4%, an increase of 1 percentage point over the same period in 2023.
Under the changing global economic situation, the three regions of America, Europe, Africa, Middle East, and Asia Pacific have all achieved profitable growth. Europe, Africa and the Middle East benefited from the newly launched La Rosière Exclusive Collection of Spaces at La Rosière Resort in the French Alps, and sales increased 6% over the same period in 2023. Business activity continues to be strong in the Americas. The “halo” effect of the Canadian resort Québec Charlevoix is driving business development throughout North America, while Brazil's anti-season (summer) skiing in the Alps helped the region increase its turnover by 10% compared to the same period in 2023.
The Asia Pacific region experienced strong growth after travel restrictions were lifted, and sales increased 32% in the first half of 2024 compared to the same period in 2023. Club Med recorded a turnover of RMB 0.38 billion in mainland China, a year-on-year increase of 20%. Excluding non-recurring projects in the same period of 2023, an increase of 33%. China's outbound travel business increased fivefold over the same period in 2023, and inbound tourism received by Chinese resorts increased sevenfold compared to the same period in 2023.
Performance summary: 1) Revenue [1] reached RMB 10.65 billion, up 11% year on year; revenue reached RMB 9.42 billion, up 6% year on year 2) Club Med's performance reached a new high, with a turnover of RMB 8.89 billion, an increase of 10% over the previous year 3) Atlantis Sanya's turnover reached RMB 0.87 billion, with an average occupancy rate of 89.6%, a record high 4) The second phase of the Taicang Alps International Resort project was officially signed, and the implementation of the asset-light strategy welcomed a new milestone August 22, $FOSUN TOURISM (01992.HK)$ (“Fosun Travel & Communications” or the “Group”, stock code: 1992.HK) announced interim results for the six months ended June 30, 2024 (the “period”). During the period, “Club Med and Others”, “Sanya Atlantis”, “Resort Asset Management Center” [2], and “Retreat Club and Related Businesses” (collectively, “Tour Operations”) recorded revenue of RMB 10.65 billion, up 11% year on year; Group revenue reached RMB 9.42 billion, up 6% year on year; adjusted EBITDA was RMB 2.09 billion; profit attributable to shareholders was RMB 0.32 billion, excluding one-time disposal of resort revenue Profit attributable to the Company's shareholders increased 20% over the same period in 2023. Club Med's three major regions performed brilliantly, reaching new record highs...
During this period, Club Med's capacity increased 4% over the same period in 2023. The Mediterranean Neighborhood Heilongbeach Resort opened in July, becoming the first Mediterranean Neighborhood resort series in southwest China. By 2026, along with new openings and renovations (partially offset by the closure of outdated resorts), Club Med anticipates an annual capacity increase of approximately 13% compared to 2023.
As demand for summer vacations and the next snow season remains strong, bookings are expected to grow continuously in the second half of 2024 and the first half of 2025. As of August 3, 2024, the cumulative number of bookings for the second half of 2024 (based on the turnover of accommodation, travel and services at a consistent exchange rate) recorded an increase of about 6% in the second half of 2023 compared to the same period in 2023. As of August 3, 2024, the cumulative number of bookings for the first half of 2025 (based on the turnover of accommodation, travel and services at a consistent exchange rate) was recorded, and the turnover for the first half of 2024 increased by about 11% compared to the same period in 2023.
Performance summary: 1) Revenue [1] reached RMB 10.65 billion, up 11% year on year; revenue reached RMB 9.42 billion, up 6% year on year 2) Club Med's performance reached a new high, with a turnover of RMB 8.89 billion, an increase of 10% over the previous year 3) Atlantis Sanya's turnover reached RMB 0.87 billion, with an average occupancy rate of 89.6%, a record high 4) The second phase of the Taicang Alps International Resort project was officially signed, and the implementation of the asset-light strategy welcomed a new milestone August 22, $FOSUN TOURISM (01992.HK)$ (“Fosun Travel & Communications” or the “Group”, stock code: 1992.HK) announced interim results for the six months ended June 30, 2024 (the “period”). During the period, “Club Med and Others”, “Sanya Atlantis”, “Resort Asset Management Center” [2], and “Retreat Club and Related Businesses” (collectively, “Tour Operations”) recorded revenue of RMB 10.65 billion, up 11% year on year; Group revenue reached RMB 9.42 billion, up 6% year on year; adjusted EBITDA was RMB 2.09 billion; profit attributable to shareholders was RMB 0.32 billion, excluding one-time disposal of resort revenue Profit attributable to the Company's shareholders increased 20% over the same period in 2023. Club Med's three major regions performed brilliantly, reaching new record highs...
Henri Giscard d'Estaing, Co-CEO of Fosun Travel and Culture and President of Club Med, said:
Facing the challenges posed by macroeconomic uncertainty and geopolitical tension in the tourism industry, Club Med reached a new record high in the first half of 2024 after achieving record performance in 2023. This not only once again proved the success of our resort upgrade strategy, but further strengthened our global leadership in mountain vacations. Today, Club Med's premium and exclusive resorts account for 100%, and in our 74 years of development, we have never had such a proud luxury resort portfolio.
Looking forward to the future, we will continue to develop resorts in the world's most beautiful destinations with global resources and operational capabilities. We will also promote digital transformation and integrate artificial intelligence technology to enhance customer experience and operational efficiency, strive to become a leading global brand in the field of sustainable tourism, create a unique lifestyle with the Club Med spirit as the core, and meet all future challenges.
Focusing on asset-light operations, domestic business remains resilient
As the leading one-stop marine-themed high-end integrated vacation destination in China, Atlantis Sanya continues to lead the market. The resort's operating business achieved a turnover of RMB 0.87 billion in the first half of 2024. The average room occupancy rate reached a record high of 89.6%, an increase of 3 percentage points over the same period in 2023, and the number of visitors increased from 3.4 million in the same period in 2023 to 3.44 million, breaking the record. Affected by changing supply and demand trends in the domestic tourist accommodation market, resorts took the initiative to adopt flexible pricing adjustments to maintain product competitiveness. The average daily room rate for rooms reached RMB 2,044 per day during the period, and the adjusted EBITDA was RMB 0.29 billion.
Performance summary: 1) Revenue [1] reached RMB 10.65 billion, up 11% year on year; revenue reached RMB 9.42 billion, up 6% year on year 2) Club Med's performance reached a new high, with a turnover of RMB 8.89 billion, an increase of 10% over the previous year 3) Atlantis Sanya's turnover reached RMB 0.87 billion, with an average occupancy rate of 89.6%, a record high 4) The second phase of the Taicang Alps International Resort project was officially signed, and the implementation of the asset-light strategy welcomed a new milestone August 22, $FOSUN TOURISM (01992.HK)$ (“Fosun Travel & Communications” or the “Group”, stock code: 1992.HK) announced interim results for the six months ended June 30, 2024 (the “period”). During the period, “Club Med and Others”, “Sanya Atlantis”, “Resort Asset Management Center” [2], and “Retreat Club and Related Businesses” (collectively, “Tour Operations”) recorded revenue of RMB 10.65 billion, up 11% year on year; Group revenue reached RMB 9.42 billion, up 6% year on year; adjusted EBITDA was RMB 2.09 billion; profit attributable to shareholders was RMB 0.32 billion, excluding one-time disposal of resort revenue Profit attributable to the Company's shareholders increased 20% over the same period in 2023. Club Med's three major regions performed brilliantly, reaching new record highs...
In terms of vacation asset management centers, Taicang Alps International Resort is in a phase of business climbing. Benefiting from the increase in demand for urban vacations and snow and ice tourism and the continuous increase in resort operations, the project performance has steadily improved. During the period, it recorded a turnover of RMB 0.11 billion and about 0.29 million visitors. The second phase of the Taicang Alps International Resort project was officially signed in June. The total investment of the project exceeded RMB 5 billion. It was funded by the Taicang Municipal Government platform, operated and managed by the group, and became $FOSUN TOURISM (01992.HK)$ A new milestone in the implementation of asset-light strategies. Lijiang Mediterranean International Resort benefited from the improved operation of Club Med Lijiang Resort and the refurbishment of Ameze's Ameze Snow Mountain Camp. During the period, it recorded a turnover of RMB 46 million, an increase of 15% over the previous year, and the number of visitors was about 0.11 million, an increase of 67% over the previous year.
Performance summary: 1) Revenue [1] reached RMB 10.65 billion, up 11% year on year; revenue reached RMB 9.42 billion, up 6% year on year 2) Club Med's performance reached a new high, with a turnover of RMB 8.89 billion, an increase of 10% over the previous year 3) Atlantis Sanya's turnover reached RMB 0.87 billion, with an average occupancy rate of 89.6%, a record high 4) The second phase of the Taicang Alps International Resort project was officially signed, and the implementation of the asset-light strategy welcomed a new milestone August 22, $FOSUN TOURISM (01992.HK)$ (“Fosun Travel & Communications” or the “Group”, stock code: 1992.HK) announced interim results for the six months ended June 30, 2024 (the “period”). During the period, “Club Med and Others”, “Sanya Atlantis”, “Resort Asset Management Center” [2], and “Retreat Club and Related Businesses” (collectively, “Tour Operations”) recorded revenue of RMB 10.65 billion, up 11% year on year; Group revenue reached RMB 9.42 billion, up 6% year on year; adjusted EBITDA was RMB 2.09 billion; profit attributable to shareholders was RMB 0.32 billion, excluding one-time disposal of resort revenue Profit attributable to the Company's shareholders increased 20% over the same period in 2023. Club Med's three major regions performed brilliantly, reaching new record highs...
In the first half of 2024, the reunion will $FOSUN TOURISM (01992.HK)$ A global membership platform that continues to give full play to the advantages of membership operations and digitalization. During the period, the reunion recorded a turnover of RMB 0.17 billion, which is basically the same as the same period in 2023. As of June 30, 2024, the Replay Club platform had more than 6.9 million members, an increase of 13% over the previous year.
Performance summary: 1) Revenue [1] reached RMB 10.65 billion, up 11% year on year; revenue reached RMB 9.42 billion, up 6% year on year 2) Club Med's performance reached a new high, with a turnover of RMB 8.89 billion, an increase of 10% over the previous year 3) Atlantis Sanya's turnover reached RMB 0.87 billion, with an average occupancy rate of 89.6%, a record high 4) The second phase of the Taicang Alps International Resort project was officially signed, and the implementation of the asset-light strategy welcomed a new milestone August 22, $FOSUN TOURISM (01992.HK)$ (“Fosun Travel & Communications” or the “Group”, stock code: 1992.HK) announced interim results for the six months ended June 30, 2024 (the “period”). During the period, “Club Med and Others”, “Sanya Atlantis”, “Resort Asset Management Center” [2], and “Retreat Club and Related Businesses” (collectively, “Tour Operations”) recorded revenue of RMB 10.65 billion, up 11% year on year; Group revenue reached RMB 9.42 billion, up 6% year on year; adjusted EBITDA was RMB 2.09 billion; profit attributable to shareholders was RMB 0.32 billion, excluding one-time disposal of resort revenue Profit attributable to the Company's shareholders increased 20% over the same period in 2023. Club Med's three major regions performed brilliantly, reaching new record highs...
Xu Xiaoliang, Co-CEO of Fosun International and Chairman of Fosun Travel & Culture, said:
In the first half of 2024, in the current environment where the global macroeconomy is facing many challenges, $FOSUN TOURISM (01992.HK)$ Leveraging its global layout and operational advantages, it not only effectively resists the risks of a single regional market, but also effectively grasped the opportunities of potential global markets, and achieved steady growth in performance. Looking ahead to the second half of the year, we will continue to focus on asset-light operations, keep up with urban vacation and snow vacation market trends, focus on improving product and brand strength, optimize operational efficiency, improve customer satisfaction, achieve sustainable growth in the Group's business, and create long-term returns for the majority of shareholders.
Remarks:
[1] Turnover refers to the total sales of the Group's Club Med and other, Sanya Atlantis, Resort Asset Management Center and Reunion and related businesses, regardless of whether the property is owned, leased or managed.
[2] The “Vacation Asset Management Center” business segment includes two major projects: Taicang Alps International Resort and Lijiang Mediterranean International Resort.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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