Fosun Tourism Announces 2022 Interim Results The Group's business volume almost doubled Bookings for the second half show accelerated rebound Mainland China saw robust business growth in July Plans to expand steadily under asset-light model
Release time:2022-08-29
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- In the first half of 2022, the Group's business volume almost doubles. Adjusted EBITDA turned around from negative RMB565 million in the first half of 2021 to RMB1,195 million in the first half of 2022. Loss attributable to equity holders significantly narrowed from RMB2,005 million in the first half of 2021 to RMB197 million in the first half of 2022
- In the first half of 2022, the business volume of Club Med amounted to RMB5,743 million, representing an increase of 336% compared with the same period of 2021, recovering to 90% of the level recorded in the same period of 2019. Thanks to the rapid release of pent-up demand and the Group’s quick deployment of its resumption plan, the business volume in the Americas, as the region with the strongest growth, climbed by more than 20% compared with the same period in 2019, while EMEA also returned to pre-pandemic level. Adjusted EBITDA turned around from negative RMB992 million in the first half of 2021 to RMB1,165 million in the first half of 2022
- Club Med’s bookings up to the latest second half of 2022 and the first half of 2023 have shown an accelerated growth momentum, expressed in Business Volume at constant exchange rate, exceeding 14% and 24% of the same period in 2019, respectively
- Thomas Cook UK grew significantly, with business volume up 6 times to RMB712 million, and will further expand its business in Europe
- Enter July, the Group’s business in China and overseas have grown simultaneously and rebounded strongly. The business volume of Club Med in July increased by 41% compared with July 2021; Atlantis Sanya recorded the second highest single-month business volume since its opening, reaching RMB215 million; Lijiang FOLIDAY Town recorded the highest single-month business volume of RMB23 million; Thomas Cook China's business volume reached RMB64 million in July, increased 15% compared with the same period of 2021, Thomas Cook UK recorded a business volume of RMB132 million, increased by 392% compared to that of July 2021
- In the first half of 2022, benefiting from the strong recovery of overseas business and steady cash inflow from domestic saleable business, the Group’s cash flow generated from operating activities was RMB1,322 million, a year-on-year increase of 14%; the Group’s net debt stabilized as at the end of June 2022 compared to year end of 2021. The debt structure is healthier, with debts exceeding one year accounting for 92%.
Fosun Tourism Group (“Fosun Tourism” or the “Group”, Hong Kong Stock Exchange Stock Code: 1992), a world-leading leisure-focused integrated tourism group, has announced its interim results for the six months ended 30 June 2022 (the “Period”). During the Period, despite the global spread of the Omicron variant of Coronavirus (COVID-19) (the “Pandemic”), following the easing of travel restrictions in tourist source countries, the Group’s business recorded strong growth in EMEA and the Americas, which continued the recovery trend in the second half of 2021.
During the Period, the business volume[1] of resorts and destination operations and tourism and leisure services and solutions (collectively as “tourism operation”), at constant exchange rate, increased by 198% year-on-year to RMB7,082 million (2021 same period: RMB2,376 million). The Group’s revenue increased by 131% year-on-year to RMB6,417 million (1H2021: RMB2,782 million); adjusted EBITDA was RMB1,195 million (1H2021: negative RMB565 million).
Club Med's business volume surged 3.4 times year-on-year, bookings showed accelerated rebound in 2H
In the first half of 2022, Club Med recorded business volume of RMB5,743 million, an increase of 336% compared with the same period in 2021, recovering to 90% of the same period in 2019. Capacity increased by 122% compared to the same period in 2021 and recovered to 87% of the same period in 2019. Of these, the capacity of resorts in EMEA, the Americas and Asia Pacific increased by 412%, 91% and 23%compared to the same period of 2021, respectively, and regaining 81%, 107% and 77% of that of the same period in 2019, respectively. In the first half of 2022, the global average occupancy rate by bed reached approximately 59%, increasing by 17 percentage points compared with the same period in 2021, while the average daily bed rate was RMB1,517, at constant exchange rate, representing an increase of around 40% and 19% as compared with the same period of 2021 and 2019, respectively.
The adjusted EBITDA of Club Med turned around to RMB1,165 million in the first half of 2022, compared to adjusted EBITDA of negative RMB992 million for the last corresponding period.
In North America, in addition to the recovery of market demand in the USA, Canada and Mexico, the newly opened resorts of Charlevoix in Quebec and Miches in Dominican Republic in 2021 and 2019 respectively, also contributed their upscale capacity to the growth. In South America, the Group seized the opportunity of the strong recovery of Brazilian domestic market. During the first half of 2022, Brazil became the third largest sales market in terms of business volume. After lack of the entire ski season due to the Pandemic in 20/21 ski season, the business volume of the mountain resorts in EMEA and the Americas in the first half of 2022 reached RMB1,692 million, recovered to 92% of the level recorded in the same period of 2019.
Club Med has recorded good bookings for this summer and the next ski season. As of 6 August 2022, the cumulative bookings for the second half of 2022, expressed in business volume at constant exchange rate, increased by approximately 39% compared with that for the second half of 2021 as of 6 August 2021, and even increased by approximately 14% compared with the second half of 2019 as of 6 August 2019, which was before the Pandemic. The Group also expects demand for the next ski season and spring in 2023 continues to gain the momentum. The cumulative bookings (expressed in business volume) for Club Med for the first half of 2023, at constant exchange rate, increased by approximately 22% compared with the cumulative bookings for the first half of 2022 as of 6 August 2021, and increased by approximately 24% compared with the cumulative bookings for the first half of 2020 as of 6 August 2019, which was before the Pandemic. Compared with the same period of 2021, Club Med’s business volume for July 2022 soared by 41%, increased by 12% compared with 2019. Among which, the business volume of EMEA and the Americas increased by 38% and 55%, respectively, and recovered to 18% and 54%, respectively, compared with 2019.
During the second half of 2022, Club Med has planned to open another 4 new resorts to reach 7 new resorts in 2022. From the beginning of 2022 to the end of 2024, Club Med has signed contracts and planned to open 17 new resorts, of which 7 are in China. By 2024, together with new opening and renovation, as well as partially offset by the closure of older resorts, annual capacity will increase by approximately 18% compared with 2019.
Mr. Henri Giscard d'Estaing, Vice Chairman and Deputy CEO of Fosun Tourism Group and Chairman of Club Med, said, “Last 2 years, we faced extremely difficult time, due to the impact of pandemic on tourism, but we are now on the way of a strong rebound.
The first half of 2022 showed a recovery in our key markets and finishes with Business Volume strong increase and a recovery close to the level of the first half of 2019. EBITDA and operating profit have massively recovered as well.
Despite the evolving sanitary, geopolitical, and economic context, with the support of our owners around the world and obviously Fosun Tourism Group, we have opened 3 magnificent Resorts in first half 2022. We plan to open 4 new ones to fuel our future profitable growth, during the second half of 2022.
The perspectives of the second half are encouraging. In spite of an uncertain and challenging world, with our successful strategy and clearly defined challenges, we are now in position to accelerate.”
Atlantis Sanya suffered from the impact of the domestic pandemic outbreak in the first half of the year and welcomes an explosive rebound in the summer, with promising prospects
In the first half of 2022, due to the negative impact of a new outbreak of COVID-19 in China, the business volume of the Group’s Atlantis Sanya decreased by 42% year-on-year to approximately RMB487 million. Room revenue was around RMB271 million and other operating income amounted to approximately RMB216 million. The average daily rate by room was around RMB2,479, with an average occupancy rate of 46%. The number of visits was 1.5 million. During the first two month of 2022, with the Pandemic in Mainland China generally under control and benefiting from its outstanding product competitiveness and the release of demand for leisure vacations, the operation of Atlantis Sanya maintained a dynamic growth momentum. It recorded the business volume of RMB362 million, up approximately 44% year-on-year and the EBITDA margin was as high as 58%, which proves that the resort has always been the preferred choice for domestic tourists. In July 2022, with the explosive rebound in demand for summer family vacations, Atlantis Sanya recorded a business volume of RMB215 million, reaching its second highest single-month business volume since its opening.
During the Period, Atlantis Sanya joined hands with French luxury fashion house LANVIN for the first time in January to create a limited-time boutique and a limited-time café — LANVIN Café. In May, it fulfilled its commitment to sea turtle conservation by holding a “Thanksgiving to the Sea, Turtle-Back to Nature” rescue and rewilding event. Since July 2022, Atlantis Sanya fully upgraded its signature summer project, the Aquaventure Waterpark Night Carnival, and launched the “2022 Atlantis Super Summer Vacation” campaign. In respect of social media, “Atlantis Sanya” was ranked No.1 on Sanya’s luxury hotel seeding list by Douyin.
Lijiang FOLIDAY Town and Taicang FOLIDAY Town continued to progress steadily, expected to create new momentum over summer vacation period
Construction of the Group’s two major projects, namely Taicang FOLIDAY Town and Lijiang FOLIDAY Town continued to progress steadily during the Period. In the second half of 2021, Club Med Lijiang resort, Albion Residence FOLIDAY Town Lijiang and lake camp have been put into operation and 2022 will be their first full operational year since opening. In the first half of 2022, the business volume of Lijiang FOLIDAY Town amounted to RMB18 million and the number of visitors totaled 46,000. In July 2022, with the turnaround of the epidemic situation and the arrival of the summer peak season, Lijiang FOLIDAY Town recorded the business volume of RMB23 million, the highest single-month business volume since its opening.
The Taicang FOLIDAY Town project has obtained a sales permit for GFA of approximately 162,000 square meters, all of which was used for sales (pre-sale). The indoor ski domain, “Alps Snow World”, completed the capping of the main structure in January 2022 and the installation of snow-making and snowfall equipment in June 2022. The themed commercial street with a GFA of approximately 67,600 square meters completed the capping of the main structure in July 2022. The podium of Club Med Joyview Taicang resort completed the capping of the structure in March 2022 and the capping of the main structure of the main building is expected to be completed by the end of September 2022. The Alps Snow Live, Club Med Joyview Taicang resort, Alps Time of Taicang FOLIDAY Town will start their business in the second half of 2023.
Thomas Cook’s domestic and overseas business delivered strong performance, enabling the FOLIDAY ecosystem to provide a wide array of vacation options
During the Period, the Group’s Thomas Cook China achieved business volume of RMB159 million. The average number of monthly active users was approximately 770,000, and the number of paid customers reached around 50,000. Currently, the platform is in a rapid growth stage. Through integration with the Group’s self-operated tourism and leisure settings, Thomas Cook China actively developed two core destinations, Hainan and Yunnan markets, to launch the “hotel +” portfolio products, with an order volume of 12,000. Benefiting from the gradual lifting of travel restrictions in UK and the gradual opening of many European countries to tourists, Thomas Cook UK realized significant growth, with business volume surging 570% to RMB712 million. Encouraged by this, the brand further expanded its business to the Netherlands and added new flight routes in Belgium and Germany, which, being near the Netherlands, will provide more diverse holiday choices to residents of the Netherlands, Belgium and Germany.
New generation resort model proven successful
Prepares for opportunities from in-and-outbound travel recovery
Asset-light development helps ensure financial stability
Club Med has been providing “all-inclusive” holidays since its founding, when we entered the Chinese market, we observed a transforming in the tourist consumption structure in China, tourists are paying more attention to vacation quality and in-depth cultural experience. Pinpointing such changes in demand, integrating the attributes of Chinese tourists and holiday distribution, Club Med came up with the new localized products Club Med Joyview. The four-year-old Club Med Joyview has become mature. Apart from speeding up its development in city surrounding or suburban areas, the Group is actively exploring expanding Club Med urban resort hotel products in key tourist cities in the mainland, so as to form a quality resort product system with three tiers – long-haul, sub-urban and urban – having respectively their own consumption and frequency pattern. At the same time, to meet the enormous travelling demand after the country opens her doors, Club Med, Thomas Cook China and UK have already made preparation in the product front and in its strategies to seize the massive opportunities in the inbound and outbound travel market. In Club Med’s and Thomas Cook’s customer source countries in Europe, efforts are made to bolster two-way in-and-outbound travel business between China and Europe.
Since its establishment, the Group has adopted a project development model that combines light and heavy assets. More than 70% of its business, in terms of revenue accountability in 2019, namely resorts and hotels, and services and solutions in various tourism and leisure settings, are developed using the asset-light model. As of 30 June 2022, Club Med owned 12 resorts. It is also actively exploring opportunities to sell its own properties in reserve/lease the properties sold afterwards. Regarding tourism destinations, it is exploring introducing strategic partners for joint development, taking into account the actual situation and strategic advantages of FOLIDAY Towns. For future tourism destination projects, the Group will not rule out introducing strategic partners in the early stages of the projects, to more fully realize its integrated operational advantages and export full-cycle management services.
Mr. Qian Jiannong, Chairman and CEO of Fosun Tourism Group, said: "Our efforts in building a global presence have reaped fruitful results in the first half of 2022. Benefiting from the lifting of travel restrictions in major overseas sourcing markets and destinations, our Club Med business rebounded notably and we have utmost confidence in its business development in the second half of 2022.
Although the pandemic may still be sporadic in some regions in the short term, Fosun Tourism has demonstrated strong resilience and with the help of its diversified global business layout, it has been recovering better than overall industry level in the face of uncertainties.
The impacts of the pandemic, changes in consumption structure and consumption concept together have presented to the industry an opportunity for structural adjustment. Being a world-leading tourism and leisure group, Fosun Tourism is ready to seize market opportunities and speed up building its global ecosystem layout in the hope of providing quality tourism products to consumers, that they may live happier lives when the pandemic is over.”
[1] Business Volume represents the aggregate sales of our resort service, tourism destination operation and other tourism-related services and solutions, regardless of whether the resort is owned, leased or managed.
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