2014 Registration Document and Annual Financial Report - page 155

4
2014 Review OF THE YEAR
Financial review
EBITDAR
Earnings before interest, taxes, depreciation, amortization and
rental expense (EBITDAR)
(1)
is a key financial performance indicator.
In 2014, it amounted to €1,772 million, up 3.8% like-for-like and
2.4% as reported year-on-year.The change breaks down as follows:
ƒƒ
like-for-like growth: €66 million;
ƒƒ
development (owned and leased hotels only): €9 million;
ƒƒ
currency effect: -€13 million;
ƒƒ
disposals: -€21 million.
EBITDAR margin was stable on a like-for-like basis at 32.5%.
EBIT
Earnings before interest and taxes (EBIT)
reached an all-time high of €602 million,
versus
€521 million in 2013, an increase of 11.7%
on a like-for-like basis. This result reflects a record margin of 11.0% (
versus
9.6% at end-2013), the result of strong demand in most of its
markets, the implementation of the cost-savings plan and the first effects of restructuring the HotelInvest portfolio.
(inmillions of euros)
2013
2014
Change
(as reported)
Change
(like-for-like)
(1)
EBITDAR
1,731
1,772
+2.4% +3.8%
Rental expense
(885)
(849)
+4.1%
-1.4%
Depreciation, amortization and provision expense
(325)
(321)
+1.1% +2.2%
EBIT
521
602
+15.6%
+11.7%
(1) At constant scope of consolidation and exchange rates.
Rental expense
was
€849 million
in 2014, compared with €885 million in 2013, a trend in line with the transformation of HotelInvest.
Depreciation, amortization and provision expense
was
€321 million
for the period.
Operating profit before tax and non-recurring items
Operating profit before tax and non-recurring items
– corresponding to EBIT less net financial expense plus share of profit of associates
– represents the result of operations after the cost of financing Group businesses and before tax. It amounted to €578 million in 2014,
compared with €442 million in 2013, an increase of 22.1% on a like-for-like basis.
(inmillions of euros)
2013
2014
Change
(as reported)
Change
(like-for-like)
(1)
EBIT
521
602
+15.6% +11.7%
Net financial expense
(90)
(52)
+42.3% +48.7%
Share of profit of associates after tax
11
28
+136.8% -59.9%
OPERATING PROFIT BEFORETAX
AND NON-RECURRING ITEMS
442
578
+30.7% +22.1%
(1) At constant scope of consolidation and exchange rates.
Net financial expense
amounted to €52 million, compared with
€90 million in 2013. The Group also reduced its
borrowing costs
by issuing €900 million worth of perpetual subordinated notes
(treated as equity), as well as €750 million in 2.625% bonds, CHF
150 million in 1.75% bonds and €150 million in 1.728% bonds,
and redeeming 7.5% bonds in an amount of €402 million. These
operations significantly reduced the cost of debt from 4.28% at
end-December 2013 to 3.11% at end-December 2014.
Accor also set up a new
unused €1.8 billion confirmed long-term
line of credit
during the year.
Share of profit of associates
amounted to €28 million, compared
with €11 million in 2013. In 2014, the share of profit of associates
was positively impacted by the payment of a special dividend of
€17 million following the sale of the NewYork Sofitel.
(1) Earnings before interest, taxes, depreciation, amortization and rental expense.
153
Registration Document 2014
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