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Club Med Owner Fosun Tourism Says 1st-Half Loss More Than Doubled To $308 Mln

Fosun Tourism Group, the tourism arm of Shanghai billionaire Guo Guangchang’s investment firm Fosun International, lost 2 billion yuan, or $308 million, in the first six months of 2021, more than double a loss of 889 million yuan a year earlier as global travel restrictions amid Covid-19 pandemic hurt revenue.

Revenue at the company, a world-leader whose global brand ownership or partnerships include Club Med, Atlantis and Thomas Cook, fell to 2.78 billion yuan from 4.52 billion, Fosun Tourism said on Thursday after the close of trade at the Hong Kong Stock Exchange. (Click here for the full announcement.) A bright spot was resort business on southern China’s Hainan Island.

Fosun Tourism raised approximately HK$3.2 billion in an IPO at the Hong Kong Stock Exchange in late 2018.  Shares on Thursday closed at HK$9.71 compared with its IPO price of HK$15.60; they have declined from a recent high of HK$15.72 in May.

A pick-up of Covid-19 cases and selective travel restrictions in China in the past month have hurt other travel and hotel businesses and led forecasters to cut predictions for third-quarter GDP growth. Nasdaq-traded hotel operator Huazhu, led by billionaire Ji Qi, closed at $43.51 yesterday, down from a June high of $59.47.  Nasdaq-traded China online booking leader Trip.com closed at $26.53 on Thursday, down from $41.85 at the end of May.

Fosun International owns about 81% of Fosun Tourism. Guo, 54, is worth $5.9 billion on the Forbes Real-Time Billionaires List today.  Forbes International’s shares closed at HK$9.68 on Thursday, down from a recent high of HK$12.58 at the end of May. Its investments range from pharmaceuticals to mining, tourism and steelmaking. 

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—Follow me @rflannerychina

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