PIERRE & VACANCES Paris, 22 November 2017
This press release presents consolidated financial results established under IFRS accounting rules, currently being audited, and closed by the Pierre et Vacances SA Board of Administration on 21 November 2017.
Revenue1 up 5.8%.
Current operating profit1 up 53%, excluding non-recurring costs during the year for Villages Nature.
Positive momentum in tourism businesses and numerous developments, in France and abroad.
Highlights of 2016/2017
Celebration of the Pierre & Vacances-Center Parcs Group's 50th anniversary
Created in 1967 by its Chairman-CEO, Gérard Brémond, the Pierre & Vacances-Center Parcs Group celebrated its 50th anniversary this year. Numerous events were organised with the Group's customers, its various partners and its 12,000 staff members.
The Group is the leader in tourism residences and resorts in Europe. This position adds weight to both its brands and its business model, internationalised to respond to changes in economic, technologic and societal conditions.
Development of the tourism offering
Villages Nature® Paris
On 10 October 2017, the Euro Disney S.C.A. and Pierre & Vacances-Center Parcs groups inaugurated Villages Nature® Paris, the first European eco-tourism destination located 32km away from Paris and 6km away from Disneyland® Paris.
The first development covering 120 hectares comprises 868 apartments and cottages and five recreational universes for discovery and relaxation (the Aqualagon, the Lakeside Promenade, the Extraordinary Gardens, the BelleVie Farm, the Legendary Forest).
The next phase will be the building of around 250 additional cottages.
Extension of the Trois Forêts Center Parcs Domain in Moselle
On 20 October 2017, the Group inaugurated 141 new cottages at the Domain des Trois Forêts, as well as the "Forest Lodge" welcome and reception area and Ze Place, offering original sports activities.
The Domain des Trois Forêts is also developing its wellness offer with a Deep Nature® spa which is due to open in autumn 2018.
1 The revenue and financial indicators commented on in this press release stem from operating reporting with the presentation of joint-ventures under proportional consolidation
Development projects in China
The Pierre & Vacances-Center Parcs group signed :
On 15 June 2017, agreements on the construction of two resorts inspired by Center Parcs in partnership with the HNA Tourism Group, of two residences developed by property developer Riverside, as well as a letter of intent concerning the development of a residence in the Thaiwoo ski station developed by Chongli Thaiwoo Lifestyle Properties Co. Ltd.;
On 6 September 2017, an agreement on the construction of a residence in the Shanghai region in partnership with Joyon ;
On 3 November 2017, an agreement on the construction of a resort in the Shanghai-Nanjing region in partnership with Huijin Holding ;
On 20 November 2017, an agreement on the construction of the residence in the Thaiwoo ski station.
The five projects are due to open from 2019/2020.
Early redemption of ORNANE bonds2
So far, 1,577,063 ORNANE bonds issued in February 2014 have been the object of early conversion requests (out of a total of 3,157,606 bonds initially issued). The Group chose to reimburse these bonds in
3
cash.
2016/2017 annual revenue and earnings (1 October 2016 - 30 September 2017)
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.
Revenue
Same- Change excl.
(Euro millions)
2016/2017
2015/2016
Change
structure
change**
supply
effects***
Tourism
1,302.6
1,253.4
+ 3.9%
+ 3.0%
Pierre et Vacances Tourisme Europe
637.9
609.4
+ 4.7%
+ 2.8%
Center Parcs Europe*
664.7
644.0
+ 3.2 %
o/w accommodation revenue
822.5
811.4
+ 1.4%
+ 2.4 %
Pierre et Vacances Tourisme Europe
390.1
392.5
-0.6%
+ 1.6%
Excl. Adagio
Center Parcs Europe*
432.4
419.0
-1.3 %
+ 3.2%
+ 2.8%
+ 3.1 %
Property development
203.7
170.8
+ 19.2 %
FULL-YEAR TOTAL
1,506.3
1,424.2
+ 5.8%
+ 4.9%
* including Villages Nature Paris, whose revenue is non-significant in 2016/2017
** adjusted for the impact of the acquisition on 13 April 2013 of "La France du Nord au Sud".
*** Adjusted for the impact of:
the net reduction in the network operated in the PVTE scope, due to the non-renewal of leases and withdrawals from loss-making sites
the opening of Villages Nature Paris as of 1 September 2017.
2 Bonds convertible and/or exchangeable into new or existing shares. French: Obligations à option de conversion et/ou d'échange en actions nouvelles ou existantes
3 Reimbursement undertaken on the basis of an average price for the Pierre et Vacances share over a 20-day trading period following the date on which the Group decided the conversion terms.
Y Revenue from the tourism businesses totalled €1,302.6 million, up 3.9% (+3% same-structure) relative to the previous year.
Accommodation revenue was up 2.4% excluding supply effects, stemming primarily from a rise in net average letting prices. International customers represented 55% of the group's accommodation revenue, up 2.4% relative to the year-earlier period.
Pierre & Vacances Tourisme Europe generated revenue of €637.9 million, including €390.1 million in accommodation revenue.
Growth was driven by all destinations excluding city residences, representing a 2.8% rise in accommodation revenue excluding supply effects: +1.8% in seaside destinations, with good performances at the Spanish residences in particular and an average occupancy rate of more than 85% over the summer period, and +4.9% in mountain residences.
The recovery in the Adagio residences business over the summer (which is taking shape in in Q1 2017/2018), offset a more difficult start to the year in a backdrop of persistent terrorist attacks and threats. As such, accommodation revenue was up slightly over the full year 2016/2017.
Center Parcs Europe generated revenue of €664.2 million (excluding Villages Nature Paris), including
€432.0 million in accommodation revenue, up 3.1%.
This revenue growth was driven by the Domains in Germany (+6.9%), the Netherlands (+4.9%) and Belgium (+1.8%) and by a slight 0.3% increase in revenue at the French domains.
Supplementary tourism income (which includes the volume of business generated by marketing activities in particular) stood at €480.1 million, up 5.9% on a same-structure basis. This growth concerned both Pierre & Vacances Tourisme Europe (+8.6%), driven by the development of maeva.com and international marketing mandates, and Center Parcs Europe (+3.2%).
Y Revenue from property development stood at €203.7 million, slightly ahead of our estimates.
This was driven mainly by the contribution from Villages Nature Paris (€37.3 million), the extension of the Domaine des Trois Forêts in Moselle-Lorraine (€35.9 million), the Pierre & Vacances Deauville (€11.8 million) and Pierre & Vacances Méribel (€6 million), and the Seniorales residences (€66.7 million).
Property reservations with individual investors represent business volume of €311.5 million, corresponding to a similar pace of sales as that seen in the previous year.
Income statement
2016/2017 2015/2016
Excl. Villages
(Euro millions) | Nature | TOTAL | ||
Revenue | 1,468.5 | 37.8 | 1,506.3 | 1,424.2 |
Tourism | 1,302.1 | 0.5 | 1,302.6 | 1,253.4 |
Property development | 166.4 | 37.3 | 203.7 | 170.8 |
Current operating profit | 49.7 | -37.3 | 12.4 | 32.4 |
Tourism | 37.1 | -12.9 | 24.3 | 25.1 |
Property development | 12.5 | -24.4 | -11.9 | 7.3 |
Financial items* | -15.9 | -1.3 | -17.2 | -18.8 |
Other operating income and expense net of tax | -6.0 | -0.6 | -6.6 | -6.1 |
Equity associates | -2.0 | 2.1 | 0.1 | 0.6 |
Taxes | -17.4 | 1.1 | -16.3 | -9.8 |
NET PROFIT before items related to the ORNANE bond | 8.3 | -36.0 | -27.7 | -1.8 |
Earnings items related to the ORNANE bond | ||||
Change in fair value | -15.7 | -5.7 | ||
Loss from part conversion | -13.4 | |||
NET PROFIT (LOSS) | -56.7 | -7.5 | ||
Group share | -56.7 | -7.4 | ||
Non-controlling interests | 0.0 | -0.1 |
Nature
Villages
*excluding cost of part redemption of ORNANE bond
2016/2017 earnings were affected by non-recurring items due to the opening of Villages Nature, namely:
A €12.9 million operating loss, including, in addition to usual pre-opening costs of €7 million (marketing, staff costs etc.), surcharges due to the delay in the opening on 1 September 2017 ;
Property surcharges of €24.4 million resulting from costs of complementary qualitative services and additional execution delays.
Excluding these exceptional expenses:
Current operating profit totalled €49.7 million, showing a significant increase relative to the €32.4 million reported for 2015/2016;
Current operating profit from the tourism businesses came in at +€37.1 million, an increase of more than €10 million relative to the previous year.
This reflected growth in business excluding supply effects (+€14 million), the positive impact on the net contribution of the reduction in Pierre & Vacances Tourisme Europe stocks under the framework of lease renewals (+€3 million) and growth in the contribution from maeva.com and international marketing mandates (+€2 million). These gains were higher than the impact of inflation on charges (estimated at -€9 million).
Current operating profit from property development stood at +€12.5 million.
It included the contribution from the property activities associated with the development of renovation operations at the Center Parcs Domains in Germany, the Netherlands and Belgium.
Pierre & Vacances SA published this content on 22 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 November 2017 21:11:09 UTC.
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