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Club Med profits plunge
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June 26, 2001: 3:15 a.m. ET
French holiday company's earnings hit by efforts to restructure and grow
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LONDON (CNN) - French holiday operator Club Mediterranee posted an 80 percent plunge in first-half net profits as it restructures to build its brand.
Club Med said net income for the six months to April 30 fell to  6 million ($5.2 million) from 38 million in the same period a year ago.
Revenues for the half-year grew about 9 percent to 958 million compared with 878 million in 2000.
The company, which built its reputation in the 1970s by offering French holidaymakers "sun, sea and sex" in resort villages, is trying to expand while moving into the leisure and fitness markets.
"Since the beginning of 2001 we have been implementing our transformation plan, which accelerates the focus of our strategy away from tourism and towards becoming a leisure group," said Philippe Bourguignon, chief executive.
Bourguignon, who is best known for establishing the Euro Disney complex outside Paris, joined Club Med in 1997 and has modernized resorts and made them more family-friendly.
But he has disappointed investors in the past couple of years as they await results from a strategy of boosting the Club Med brand by promoting a lifestyle to "members" rather than aiming for mass-market tourism.
The company recently bought Gymnase Club as it increases its presence in the fitness market.
Club Med said operating profit in the six months fell about 40 percent to 34 million from 58 million as it expanded its resorts in Greece, Morocco and Egypt.
Club Med (PCU) shares closed down 4.6 percent at 58.20 in Paris trading on Monday. 
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