2013 Registration document and annual financial report - page 169

Registration Document 2013
167
2013 Review of the Year
4
Financial review
Other businesses
Revenue from other businesses rose 2.7% like-for-like but
contracted 16.0% as reported, primarily due to the disposal of
Orbis Transport in Poland.
EBITDAR
EBITDAR (earnings before interest, taxes, depreciation, amortization
and rental expense) represents a key financial performance indicator.
Consolidated EBITDAR amounted to €1,759 million in 2013,
representing a 2.6% like-for-like gain for the year that may be
analyzed as follows:
ƒƒ
like-for-like growth:
€47 million;
ƒƒ
development (owned and leased hotels only):
€36 million;
ƒƒ
currency effect:
€(43) million;
ƒƒ
disposals:
€(69) million.
EBITDAR by business
(inmillions of euros)
2012
2013
% change
% change
like-for-like
(1)
Hotels
1,774
1,716
(3.3)%
+1.1%
Upscale and Midscale
1,017
964
(5.2)% +1.0%
Economy
757
752
(0.7)% +1.3%
Other businesses
14
43
+207.1% +184.9%
TOTAL
1,788
1,759
(1.6)%
+2.6%
(1) At constant scope of consolidation and exchange rates.
EBITDAR represented 31.8% of consolidated revenue in 2013.
In the
Upscale and Midscale
segment, EBITDAR margin stood at
28.0% of revenue, down just 0.8 point as reported and 0.6 point
like-for-like. The segment’s
EBITDAR
improved by 1.0% like-for-like
to €964 million, reflecting the sharp rebound in demand in the
second half, which saw a 4.7% like-for-like improvement,
versus
a 3.2% contraction in the first half.
In the
Economy
segment, EBITDAR margin stood at a record
high 38.2%, down a slight 0.3 point as reported and 0.4 point
like-for-like. EBITDAR totaled €752 million for the year, similarly
illustrating a clear second-half upswing (up 3.7% like-for-like,
versus
a 1.4% decline in the first half). This reflected the healthier
demand, primarily in the European provinces, the positive impact
of the new ibis brand architecture, the opportunistic, disciplined
distribution channel management that helped to improve volumes
and rates, and the deployment of the cost-savings plan.
EBIT
EBIT, corresponding to EBITDAR after depreciation, amortization, provisions and rental expense, improved by 5.3% like-for-like to
€536 million from €526 million in 2012. The increase may be analyzed as follows:
(inmillions of euros)
2012
2013
% change
% change
like-for-like
(1)
EBITDAR
1,788
1,759
(1.7)% +2.6%
Rental expense
(938)
(894)
(4.7)% (1.4)%
Depreciation, amortization and provision expense
(324)
(329)
+1.5% (1.9)%
EBIT
526
536
+1.9%
+5.3%
(1) At constant scope of consolidation and exchange rates.
Depreciation, amortization and provisions
rose by 1.5% as
reported during the year due to the acquisitions of Mirvac and
Posadas in 2012, the deployment of the ibis megabrand program
and the capital expenditure committed in the distribution operations
in 2013.
Rental expense
declined by 4.7% as reported and by 1.4%
like-for-like, primarily as a result of lease restructuring.
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