• France edition
 
Profitable Club Med mulls share buyback
Club Med 2 sailing ship (Photo: Adrian Pingstone)

Profitable Club Med mulls share buyback

Published: 07 Dec 2012 11:34 GMT+01:00
Updated: 07 Dec 2012 11:34 GMT+01:00

The travel and leisure specialist, which returned to profitability last year, said that given the uncertain outlook for the European economy it would not pay a dividend.

However, Club Med held out the possibility of a share buyback, which it said was preferable to paying a dividend, which it hasn't done in a decade.

Despite turning in duller second half results, annual sales still rose by 2.6 percent to 1.46 billion euros.

The profit margin slid to 8.7 percent from 8.9 percent.

Since 2004, Club Med has sought to move both upscale to base itself in the luxury segment and create resorts in developing countries to rely less on Europe.

Chief executive Henri Giscard dEstaing said that remaining profitable despite the slowdown in the European market this year vindicated Club Med's strategy.

The company "is positioned to capture the growth of the market of high-end all-inclusive vacations and have, at the end of 2015, nearly one client in three from a rapidly developing country," he said.

Currently about 25 percent of Club Med's clients are from rapidly developing countries.

The company aims to have three-quarters of its business in the luxury segment (four or five stars), compared to two-thirds today and 45 percent five years ago.

The company has a dozen resort projects abroad due to be completed by 2015, with China expected by then to become Club Med's number two market with 200,000 clients in five resorts.

To capture the Chinese market, it plans to target the urban rich seeking weekend escapes to luxury resorts it plans to open in idyllic settings near major cities.

Favouring a strategy of management contracts, the resorts will be branded "by Club Med".
   
The Chinese investment company Fosun is one of Club Med's biggest shareholder.

Don't miss...X
Left Right

Your comments about this article

Today's headlines
How France compares to Europe:  Unemployment
How does France compare to its neighbours when it comes to unemployment.Photo: Philippe Huguen/AFP

How France compares to Europe: Unemployment

The jobless total in France hit a new record high this month with 3.424 million people out of work. Is it only in France that records are being broken? The Local takes a look at why the numbers are more positive in at least some of France's neighbours. READ  

Frenchman flips out over reclined seat on US flight
A Frenchman freaked out on a US plane over a reclined seat and is in big trouble. Photo: Doug/Flickr

Frenchman flips out over reclined seat on US flight

A Parisian man faces jail after losing his cool on a France-bound flight from the US over a passenger who reclined his seat just a bit too far. His outburst comes on the heels of the now infamous “Knee Defender” melee aboard another American plane. READ  

French police in race to find sick British boy
Ashya King, who police in France are desperately trying to track down. Photo: YouTube/Naveed King

French police in race to find sick British boy

Police in France and Britain faced a race against time on Friday in their hunt to find a five-year-old boy with a brain tumour who officials in France believe was "kidnapped" from a UK hospital by his family. READ  

French women's safety fears 'due to inequality'
A third of French women say they afraid to walk in their neighbourhood. Photo: Takato Marul/Flickr

French women's safety fears 'due to inequality'

Recent studies suggest women in France do not feel safe walking the streets of their neighbourhoods and many are afraid of walking around Paris at night. Some argue that gender inequality in the country is partly to blame. READ  

Feature - Wingsuit flying
Thrill-seekers risking life and limb in French Alps
Wingsuit flying has taken off in France despite dangers. Photo: Philippe Desmazes/AFP

Thrill-seekers risking life and limb in French Alps

A mountain in the French Alps has become a hot spot for the high-risk and often deadly extreme sport of wingsuit flying. And the seemingly hairbrained alpine activity where "there is no margin for error" attracts a lot of "dangerous egos". READ  

British killer escapes from hospital in France
French police have launched a manhunt for an escaped British killer. Photo: Philippe Huguen/AFP

British killer escapes from hospital in France

A mentally ill British man is on the run in France after escaping from a psychiatric hospital, where he was forcibly committed after beating a man to death with a four-kilo weight. READ  

Does France really suffer from a brain drain?
France may not be suffering from a brain drain after all, but it's not as attractive as the UK or Germany. Photo: Leaving.

Does France really suffer from a brain drain?

The latest European Union figures cast a bit of doubt on worries the moribund French economy is prompting a mass brain drain. However the stats do suggest France is far less attractive than the UK and Germany when it comes to certain professions. READ  

French cities struggle with bedbug infestations
Bed bugs are biting in France. Photo: Shutterstock

French cities struggle with bedbug infestations

The infestation of French cities by bed bugs is worse than ever before with hygiene services overwhelmed, according to reports. READ  

IMF board to review Lagarde's legal problems
IMF chief Christine Lagarde's situation is to be reviewed after she was placed under investigation. Photo: AFP

IMF board to review Lagarde's legal problems

International Monetary Fund board members will meet "as soon as possible" to review the situation of their chief Christine Lagarde, who was placed under formal investigation in Paris this week for alleged "negligence". READ  

Champions League
PSG drawn in same group as Barcelona
Photo: AFP

PSG drawn in same group as Barcelona

PSG were paired with Barcelona in Group F of the Champions League when the draw for the group stages was made on Thursday. France's other representative Monaco were handed a much easier draw, at least on paper. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
The French words you can't translate literally
National
Ten things you need to know about France's economics whizzkid
International
VIDEO: Watch the top five street scams to avoid in Paris
Politics
Take a look at the bulging to-do list that awaits France's new government
Politics
Six questions for France after Hollande ousts rebels
International
Choosing schools in France: Do you go international or French?
Gallery
From kissing to bad-mouthing: Ten ways expats in France drive you mad
Culture
Ten things you need to know about the Liberation of Paris:
Travel
Watch this impressive time lapse video and you'll want to move to Paris
National
Veiled Muslim woman on a French beach prompts politician's angry rant
Travel
Forget Paris and Provence where are the least touristy areas of France?
Gallery
IN PICTURES: The battle to liberate Paris from the Nazis
National
What France means to you in just one tweet
National
15 French 'false friends' you need to watch out for
International
12 reasons to invest in Paris and seven not to
National
French hamlet 'Death to Jews' mulls name change
National
French tourist caught in Pompeii brothel romp
International
'Forget the Anglo-media's image of France, the reality is much different'
Culture
VIDEO: Francophile Robin Williams enjoyed poking fun at the French
Travel
Six reasons why France is the world's top tourist destination
International
Remembering the 'forgotten campaign' in the liberation of France
Gallery
VIDEO: French bucket list - The 12 best things to do in France
International
Do three French cities deserve to be in top 10 "World 's Most Unfriendly"?
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se