The tourism sector is one of the most affected by the economic crisis engendered by the Covid-19 and a few months of inactivity imposed by the confinement. Pierre & Vacances-Center Parcs expects a fall of 90 % of its activity in the third quarter. The company is of the view that the shortfall will be € 300 million between April and June because of the sars coronavirus.
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However, the directorate has state-of-trends “encouraging” for the fourth quarter. On Wednesday, the number one european residences of leisure has announced a net loss of 145 million euros in the first half (October-march), compared with $ 121 million a year earlier. Its half-year results – still structurally in deficit, as the group releases 40 % of its turnover during this period, for 50 % of the charges – have also been affected by the closure of almost all of the sites during the second half of march, due to the health crisis.
“The third quarter is the worst”
” From 1 October to 15 march, the activity was very satisfactory, but on the second half of march, it has lost 31 million turnover in accommodation “, a summary Patricia Damerval, deputy director-general for Finance, during a conference call. The group that owns the brands Pierre & Vacances, Center Parcs, or Adagio, he had already published in April its half-year sales, decreased 5.7 % year on year, to 696 million euros. But ” the third quarter is for us the worst “, due to the closure of sites throughout the containment, and’ a return to very progressive in June “, underlined Yann Caillère, director general.
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For these months of April, may and June, the group plans ” a reduction of activity estimated to be -90 % compared with the third quarter of 2019, with nearly 300 million euros of turnover loss “, as well as an ” impact on the current operating profit limited to € 130 million due to savings made elsewhere. However, there is a lot of emphasis on the fourth quarter (July, August, September) and highlights of the ” trends in bookings are encouraging “, with ” strong requests from the ads déconfinement the may 28 “.
“We are ready to rebound”
are two “points of vigilance” for this summer: Spain, destination-a lighthouse that looks like a lot of delay in bookings and residences Adagio, operation close to the hotels, which are struggling to restart: they together account for 20 % of the revenue from Tourism for the 4th quarter. In addition, Pierre et Vacances has announced that it has secured a Loan guaranteed by the State (PGE) of 240 million euros, ” intended to cover the operating losses related to the crisis “. With respect to the plan “Change Up” – announced at the end of January, and which seeks a return to profitability as early as 2021 via a savings plan of eur 50 million, and the elimination of approximately 220 positions at headquarters out of a total of 12.850 – ” the road map will be held “, said Yann Caillère. “We are ready to rebound,” insisted the president-founder of the group, Gérard Brémond.
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