Club Med in profit after four years of losses

10th June 2005, Comments 0 comments

PARIS, June 10 (AFP) - French package holiday group Club Med reported on Friday that it had made a net profit of EUR 4 million (USD 4.8 million) in the first half of the 2004-2005 year from a loss of EUR 29 million in the same period of last year.

PARIS, June 10 (AFP) - French package holiday group Club Med reported on Friday that it had made a net profit of EUR 4 million (USD 4.8 million) in the first half of the 2004-2005 year from a loss of EUR 29 million in the same period of last year.  

The profit was the first for four years and the price of shares in the group was showing a rise of 1.59 percent to EUR 39.63 in initial trading.  

Operating profit rose by 8.0 percent to EUR 35 million. Analysts had expected a figure of EUR 30 million.  

A stock analysts at Fortis bank, Caroline Barbery commented: "Overall, the results are positive. The net result, as expected, is positive for the first time". But she said that overall, analysts had expected a net profit of EUR 7 million.  

She said: "Operating profit for the Asia area was steady, helped by insurance which covered costs arising from the tsunami."  

Sales in the six-month period to the end of April fell by 4.3 percent to EUR 750 million. Club Med said that, excluding the effects of cyclones in the Caribbean and of the tsunami in Asia, sales would have risen by 1.5 percent.  

However, Barbery commented, that that it was not certain that the group could achieve its target of an operating profit of EUR 100 million for the whole of 2005-2006 and she put the likely figure at EUR 75.2 million.  

Brokerage Raymond James also estimated that the target of EUR 100 million would be difficult to achieve.  

Club Med president Henri Giscard d'Estaing said that the business was heading in the right direction and that he was not abandoning the target for an operating profit of about EUR 100 million at the end of 2006.

© AFP

Subject: French News

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