Fosun Tourism Announces 2023 Interim Results: Revenue Increases by nearly 40%, Turning Losses into Profits

Results Highlights:

• Business Volume of the Group’s tourism operation increased by 29.0% year-on-year to RMB9,488.0 million, while revenue grew by 38.7% to RMB8,898.8 million.

• Losses were turned into profits, achieving a net profit attributable to equity holders of the Company of RMB471.8 million.

• Club Med's Business Volume surpassed pre-pandemic levels, with strong growth in operating profit and adjusted EBITDA.

• Atlantis Sanya achieved record high revenue, with adjusted EBITDA doubling year-on-year and an Average Occupancy rate of 86.2%.

• Strategic focus: the Group reclassified four business segments, namely “Club Med and Others”, “Atlantis Sanya”, “Vacation Asset Management Center”[1] and “Foryou Club and Relevant Services”.

(Hong Kong, 28 August 2023) – Fosun Tourism Group ("Fosun Tourism" or the "Group", Hong Kong Stock Exchange Stock Code: 1992), a world leading leisure focused integrated tourism group, announced today its interim results for the six months ended 30 June 2023 (the “Period”). With worldwide lifting of pandemic-related restrictions and release of strong demand for vacations after the pandemic, the Group’s global business operations have fully recovered.

During the Period, the Business Volume[2] of Club Med and Others, Atlantis Sanya, Vacation Asset Management Center, Foryou Club and Relevant Services (collectively as “tourism operation”) recorded RMB9,488.0 million,representing an increase of 29.0% compared to the same period in 2022. Revenue increased by 38.7% year-on-year to RMB8,898.8 million. Adjusted EBITDA increased by 92.4% year-on-year to RMB2,299.7 million. Operating profit reached RMB1,352.4 million, with a year-on-year growth of 371.9%. Profit attributable to equity holders was RMB471.8 million, reversing a loss in the same period last year to a profit. 

Club Med achieved record-high performance, focusing on upscaling, increased capacity, and optimized product portfolio 

In the first half of 2023, thanks to the rapid growth of mountain vacations from EMEA and Brazil, Club Med business achieved record results, with Business Volume amounting to RMB7,938.8 million, an increase of 32.2% year-on-year, recovering to 119.6% compared to the same period of 2019. Adjusted EBITDA amounted to RMB1,987.2 million, an increase of 70.5% compared to the same period in 2022 and an increase of 48.2% compared to the same period in 2019. Global capacity has recovered to 99.2% for the same period of 2019, while the global average Occupancy Rate by Bed reached approximately 62.4%, increasing by 3.3 percentage points compared to the same period of 2022. Thanks to the effective implementation of the upgrade strategy, the proportion of Club Med's four/five-star and above resorts' capacity reached 97%, an increase of 11 percentage points from 2019, driving the Average Daily Bed Rate to RMB1,753.3, an increase of approximately 10.6% and 32.2% compared to the same period in 2022 and 2019 respectively.

In terms of regional performance, the Group successfully seized the opportunities of the strong recovery of the Brazilian domestic market and the popularity of ski vacations in the Alps, and drove the Business Volume of the Americas region to increase by 35.4% compared to the same period of 2022, and 64.6% compared to the same period of 2019, with Brazil ranking third in terms of Business Volume. Thanks to the new resorts as Tignes, upgraded Exclusive Collection Val d’Isere and the renovated resorts as Pragelato, the Business Volume of the EMEA region increased by 14.3% and 12.7% compared to the same period of 2022 and 2019 respectively. In Asia Pacific, Business Volume saw a significant year-on-year increase of 247.0% and recovered to 92.7% over the same period in 2019.

Looking ahead to the second half year, as of August 6, 2023, Club Med’s cumulative booking volume for the second half of 2023 represented an increase of 6% in Business Volume at consistent exchange rates in terms of Business Volume from Stays, Tours and Services compared to the second half of 2022 as recorded on August 6, 2022, and an increase of approximately 21% compared to the second half of 2019 (pre-pandemic) as recorded on August 6, 2019. The Group is also seeing strong demand for the next ski season and Spring 2024. Cumulative bookings for Club Med in the first half of 2024 increased by approximately 27% compared to cumulative bookings in the first half of 2023 recorded on August 6, 2022, and by approximately 54% compared to cumulative bookings for the first half of 2022 as of 7 August 2021. 

In the second half of 2023, the Group plans to open four new resorts, including the Urban Oasis Xianlin Nanjing Resort and Taicang Resort in China, Kiroro Grand in Hokkaido, Japan and La Rosiere Exclusive Collection Suite in France. By 2025, together with new openings and renovation (partially offset by the closure of obsolete resorts), the Group anticipates an increase of annual capacity by more than 20% compared to 2022. 

Mr. Henri Giscard d’Estaing, Vice Chairman, Co-CEO of Fosun Tourism Group and President of Club Med, said: “After the strong recovery of the EMEA and Americas markets in 2022, followed by Asia Pacific, the recovery of global tourism is accelerating. Club Med’s Business Volume has not only returned to pre-pandemic levels, but also reached a record-high in the first half year. Looking ahead to the second half year, the booking trend remains positive. We are also pleased to launch our new urban resort product line in China, “Club Med Urban Oasis”, alongside “Club Med Joyview”, to capitalize on rising demand for domestic travel. In the future, we will continue to build on our two main strategies of value enhancement and global expansion to drive Club Med to continuously achieve profitable growth and become the most popular resort lifestyle brand. At the same time, we will provide life-changing experience for our team and contribute to sustainable tourism.”

Atlantis Sanya Achieved Record Turnover, Taicang Project to Open in Second Half Year

In the first half of 2023, the Business Volume of Atlantis Sanya amounted to RMB887.1 million, increased by 82.2% as compared to the same period in 2022. The Average Daily Rate by Room is RMB2,408.3, with an average Occupancy Rate of 86.2%, increased by 40.1 percentage points as compared to the same period last year. The number of visits increased to 3.2 million compared with 1.5 million in the same period in 2022. Adjusted EBITDA for the first half of 2023 was RMB 461.0 million, representing an increase of 122.9% compared to the same period of 2022.

During the period, Atlantis Sanya continued to innovate its activities and enhance customer experience. In the first half year, Atlantis Sanya unveiled themed events such as “Aquaventure Pink Night”(「水世界粉色之夜」) and fifth Anniversary celebrations, and introduced the renowned food and beverage brand, Songhelou (「松鶴樓」). In July, Atlantis Sanya upgraded its signature summer event in Aquaventure — Aqua Screen Show (粉色之夜水幕秀) - and launched the two-month “Super Summer 2023” programme. In September, Atlantis Sanya will partner with the State General Administration of Sport for the third time to hold the 2023 China Mermaid Open. As of 30 June 2023, Atlantis Sanya continued its premier first ranking on Douyin’s Eat, Drink and Play — Popularity List.

In terms of Vacation Asset Management Center, the Taicang Alps Resort project progressed steadily in the first half of 2023. The largest indoor ski resort in Eastern China, “Alps Snow Live”, The Club Med Urban Oasis Taicang Resort and the themed commercial street “Alps Time” will be officially unveiled in the fourth quarter of this year in the resort area. As of 30 June 2023, Taicang Alps Resort had sold 191 properties, with sold value of RMB478.1 million. The Business Volume of Lijiang Club Med Resort was RMB39.6 million, representing an increase of 122% year-on-year, and it received approximately 64,000 visitors, representing a 39% year-on-year growth. 

Foryou Club Upgraded Strategy, Focusing on Global Membership Operation of FTG

In the first half of 2023, the Group carried out a comprehensive brand revitalization and strategy upgrade of Foryou Club, and positioned it as the official global membership platform of Fosun Tourism Group. In the future, Foryou Club will focus on membership operation and fully leverage on Fosun Tourism Group’s Club Med, Atlantis Sanya and other advantageous vacation IPs and products to create high-quality travel and vacation products, both at home and abroad. During the period, the platform recorded a Business Volume of approximately RMB177.5 million, representing an increase of 11.5% over the same period in 2022. As of 30 June 2023, the Foryou Club platform had over 6.1 million members, representing a year-on-year growth of 17.1%, of which 56,000 were paid users, representing a year-on-year growth of 13.6%.

Mr. Xu Xiaoliang, Co-CEO of Fosun International and Chairman of Fosun Tourism Group, said: “After three years of suppressed demand, travel surged in the first half of the year. Fosun Tourism Group capitalized on its strong vacation IPs, products, and operational capabilities, transitioning from losses to significant profit. Looking ahead to the second half year, with the opening of several key projects around the world, we will steadfastly implement our focus strategy, seize market opportunities, bolster our IP and membership strategies, optimize our capital structure, ensure continuous growth, and deliver sustainable long-term value to our shareholders.”

[1] In 2023, we incorporated our two major projects, Taicang and Lijiang, under the former“Foliday Town” brand into our “Vacation Asset Management Center” business segment

[2] Business Volume represents the aggregate sales of our Club Med and Others, Atlantis Sanya, Vacation Asset Management Center, Foryou Club and Relevant Services of the Group, regardless of whether the resort is owned, leased or managed