France’s Accor Reports Superb Outcomes in 2007

Operating profit before tax and non-recurring items was up 25 percent to 907 million euros according to figures released by Accor. Net profit, Group share was also up 76 percent to 883 million euros and earnings per share also up 76 percent to 3.92 euros. Ordinary dividend was up 14 percent to 1.65 euros per share.

New return to shareholders of 750 million euros (subject to Shareholders’ approval at the Annual General Meeting): Special dividend of 1.50 euros per share. Growth in revenue and improved margins: operating profit before tax up 25 percent

Consolidated revenue grew by a reported 6.8 percent in 2007. At constant scope of consolidation and exchange rates, the like-for-like increase was 6.5 percent, reflecting strong growth in the Group’s two core businesses, Services and Hotels.

Services revenue rose 11.9 percent like-for like and 16.5 percent on a reported basis, in line with the Group’s medium-term organic growth target for this business of between 8 percent and 16 percent.

The Hotels business was boosted by the continued upturn in the hotel cycle in Europe that began in mid-2005, both in terms of occupancy rates and average rates. This trend fueled a 6.4 percent increase in like-for-like revenue from the region. Worldwide, Hotel revenue rose by 5.8 percent at constant scope of consolidation and exchange rates and 7.8 percent on a reported basis.

Consolidated Ebitdar amounted to 2,321 million euros, up 11.4 percent from the reported 2006 figure. Ebitdar margin reached 28.6 percent, an historic record margin for Accor, gaining 0.7 points like-for-like and 1.2 points on a reported basis.