2013 Registration document and annual financial report - page 166

Registration Document 2013
164
2013 Review of the Year
4
Financial review
4.1. FINANCIAL REVIEW
ANALYSIS OF CONSOLIDATED FINANCIAL RESULTS
During the year, business was highly contrasted between a difficult first half and a more robust second six months, which enabled Accor to
easily comply with its market guidance. Among the factors driving the upturn was the Group’s agility and proficiency in choosing the right
distribution channels at the right time, but the ibis brand strategy and the successful implementation of the cost savings plan were equally
decisive, especially when combined with a sharp rebound in the hotel business in the European provinces.
EBIT amounted to €536 million in 2013, representing a year-on-year increase of 5.3% based on constant scope of consolidation and
exchange rates (like-for-like) and of 1.9% as reported. Results for the year were primarily shaped by a reduction in rental expense following
the restructuring of leased hotels. On the other hand, impairment, depreciation and amortization charges rose due to the deployment of
the ibis family brand revitalization program, the depreciation and amortization expense recognized on the Mirvac and Posadas acquisitions
and the capital expenditure committed in the distribution operations.
Accor also initiated a historic turning point in the organization of its core competencies of hotel operator/franchisor and hotel owner/
investor. Now separated into two businesses known as HotelServices and HotelInvest, each one is fully focused on its priorities – the first
on expanding through fees paid by the managed and franchised hotels and the second through the return on its owned hotel assets, which
are being restructured and upgraded with new investments.
Revenue
At comparable scope of consolidation and exchange rates,
revenue increased by 2.7% in the year ended December 31,
2013,
thanks in particular to the sharp 14.7% rise in revenue from
management and franchise fees.
Reported revenue reflected the following factors:
ƒƒ
development, which added
€130 million
or
2.3%
to reported
growth, led by the integration of 170 new hotels totaling
22,637
rooms over the year;
ƒƒ
changes in the scope of consolidation due to asset disposals,
which reduced revenue by
€258 million
and growth by
4.6%;
ƒƒ
the
€138 million
negative currency effect, which reduced
growth by
2.4%,
with a general decline in exchange rates
against the euro, notably for the Australian dollar, Brazilian real
and British pound.
As reported, revenue was down by 2.0% for the year.
Revenue by business
(inmillions of euros)
2012
2013
% change
reported
% change
like-for-like
(1)
Upscale and Midscale
3,536
3,438
(2.7)% +2.9%
Economy
1,961
1,970
+0.4% +2.4%
Hotels
5,497
5,408
(1.6)%
+2.7%
Other businesses
152
128
(16.0)%
+2.7%
TOTAL
5,649
5,536
(2.0)%
+2.7%
(1) At constant scope of consolidation and exchange rates.
1...,156,157,158,159,160,161,162,163,164,165 167,168,169,170,171,172,173,174,175,176,...344
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