Club Med reports tripled profits, shares jump
Holiday hotel group Club Mediterranee reported on Thursday a tripling of net profits for the first half of 2011 to 10 million euros ($14.6 million) from three million euros at the same time last year.
The price of shares in the international leisure business rose by 2.80 percent to 15.78 euros in morning trading. The overall stock market as measured by the CAC 40 index was showing a fall of 0.19 percent.
The firm noted that it had raised net profits despite unrest in north Africa where it has important holiday facilities.
The group said that it would not re-open two seasonal holiday villages in Tunisia, and that a village in Japan would be closed for this summer.
Chief executive Henri Giscard d'Estaing said that the worldwide range of the group's interests and a strategy of taking holiday villages up market had enabled the group to spread risks and adapt to ups and downs in the market.
Advance bookings for the winter season (in the northern hemisphere) would also enable the group to "compensate for the unfavourable effects of events so far on summer business," he said.
Finance director Michel Wolfovski said that the impact of unrest in north Africa and to a lesser extent of earthquake disruption in Japan would amount to a total of 5.5 million euros.
© 2011 AFP