PARIS—Accor has reported its first half 2019 results, confirming the group’s performance in the execution of its objectives.
Among the highlights:
- Revenue up 27.8% to $2.1B (€1,926M) (+4.8% LFL)
- EBITDA up 30.1% to $414M (€375M) (+5.1% LFL)
- Recurring free cash flow of $158M (€144M)
- Net profit, group share of $155M (€141M)
“Once again, Accor reported another semester of solid results, in line with its objectives set for the medium term. Transformed into an asset-light player, the group is now capitalizing on its growth drivers—strong complementary brands that are leaders in the majority of their markets, a sustained development, leading positions in the most touristic markets and a unique ecosystem for the benefit of the group’s millions of customers and partner-owners. The execution of our plan and our business momentum remain on track to achieve another record year in 2019,” said Sébastien Bazin, chairman/CEO, Accor.
Net Profit
In first-half 2019, in the absence of any material non-recurring items, net profit before profit from discontinued operations improved to $138M (€125 million). The net profit, group share, came to $155M (€141 million). During the same period in 2018, the sale of 58% of the capital of AccorInvest resulted in the recognition of a capital gain of $2.6B (€2.4B).
Development
After adding 18,589 rooms (149 hotels) on an organic basis during the period, Accor had a portfolio of 717,314 rooms (4,892 hotels) and a pipeline of 202,000 rooms (1,153 hotels) at June 30, of which 78% in emerging markets.
Reported revenue for the period reflects the following factors:
- Changes in the scope of consolidation (acquisitions and disposals) had a positive impact of $357M (€324M) (+21.5%), due in particular to the contributions of Mantra and Mövenpick.
- Currency effects had a positive impact of $25M (€23M) (+1.5%), primarily relating to the U.S. dollar (€30 million).
“Building the loyalty application, we’re developing those contracts with people with whom we can do co-branded cards,” Bazin said in an earnings call. “That’s an example of some of the elements, but it will take some time before you see those turning into real, practical things. And that’s why we always said that the launch will be at the end of this year… And that’s also why you’ve got mostly expenses in the first and in the second year with only the return popping out in the third and in the fourth year.”