MILLENNIUM & COPTHORNE HOTELS PLC HALF YEAR 2018 …/media/...MILLENNIUM & COPTHORNE HOTELS PLC HALF...
Transcript of MILLENNIUM & COPTHORNE HOTELS PLC HALF YEAR 2018 …/media/...MILLENNIUM & COPTHORNE HOTELS PLC HALF...
MILLENNIUM & COPTHORNE HOTELS PLC
HALF YEAR 2018
RESULTS PRESENTATION 03rd AUGUST 2018
WELCOME TO
OUR WORLD OF
HOSPITALITY
M Social Auckland
Mayfair London – artist’s impression
H1 2018 HIGHLIGHTS
£m H1
2018
H1
2017 % Change
Revenue 477 485 1.6%
- at constant rates 477 463 3.0%
Profit before tax 65 63 3.2%
- at constant rates 65 61 6.6%
Gearing (vs. Dec 2017) 25.0% 24.3% 0.7% pts.
Basic EPS 8.5p 12.8p 33.6%
Ordinary dividend per share 2.08p 2.08p -
TOTAL REVENUE
REVENUE DOWN BY 1.6% (reported rate)
485 477
5 3
6
(22)
440
460
480
500
RevenueH1 2017
Hotel REIT Property Foreximpact
RevenueH1 2018
£m REVENUE H117 to H118
• Revenue at reported rate is down by £8m or 1.6%.
• Revenue at constant rate is up £14m or 3.0%.
• Hotel revenues have increased by £5m or 1.3% at
constant currency.
• REIT revenues are up by £3m.
• Property revenues are up by £6m at constant currency largely
due to higher New Zealand residential section sales.
• The strengthening of the pound sterling during the period had
a negative foreign exchange impact of £22m on the
comparative for H118.
HOTEL REVENUE
HOTEL REVENUE DOWN BY 3.3% (reported rate)
418 404
1 4 6
(6)
(19)
350
400
450
Hotel revenueH1 2017
NewPlymouth
M SocialAuckland
Underlying Mayfairrefurbishment
Foreximpact
Hotel revenueH1 2018
£m Hotel Revenue H117 to H118
• The Waterfront Hotel in New Plymouth was added to the
Australasian hotel portfolio in February 2018.
• M Social Auckland (previously Copthorne Hotel Auckland
Harbourcity) re-opened in October 2017. Full year of
trading in 2018.
• Underlying hotel revenues are up largely due to higher
contributions from One UN (re-branded in August 2017).
• Phased refurbishment work on Millennium Hotel London
Mayfair commenced in the fourth quarter of 2017
resulting in loss of revenue during 2018.
• The stronger pound sterling had a negative foreign
exchange impact on the comparative for H118. Excluding
this impact, hotel revenues are up £5m (1.3%).
OPERATING PROFIT AND PROFIT BEFORE TAX
OPERATING PROFIT UP BY 1.4% (reported rate)
PBT UP 3.2% (reported rate)
• Operating profit is up £1m (1.4%) in reported rate.
• Positive property (including REIT) movement of £8m.
• No impairment recognised in H118. £9m impairment
recorded in H117.
• Strengthening of the pound sterling resulted in a negative
foreign exchange impact of £3m on operating profit.
69 70
8
9
(9) (3)
(1) (3) 60
70
80
90
Op ProfitH1 2017
REIT &Property
Impairment OtherIncome
Hotels CentralCosts
Forex Op ProfitH1 2018
£m Operating Profit H117 to H118
63 65
4 2
(1) (3)
50
60
70
PB
T H
1 2
017
Ope
ratin
g P
rofit
Share
of
JV
/Asso
cia
tes
Ne
t F
inance c
ost
Fore
x Im
pact
PB
T H
1 2
018
£m PBT H117 to H118
BUSINESS REVIEW
Turnaround Priorities
• New Head of HR
o Review and develop value enhancing HR practices and programs
• New Group Chief Marketing Officer
o Define brand architecture and brands
o Review Sales, Pricing & Distribution Platforms
• Mayfair Refurbishment
o Deliver 5* flagship for re-opening Q1 2019
• Focus on US
o Broadway plan
• Profit Recovery & Optimization
o Address under-performing/loss making hotels
o Develop, implement and monitor asset plans for top hotels
o Top 26 hotels – driving 80% of profit
101.38
52.10
133.13
56.16
81.00
59.47 69.55
86.06
54.67
141.11
55.25
80.65
62.75 74.64
40
60
80
100
120
140
160
London Rest ofEurope
New York Regional US Singapore Rest of Asia Australasia
H1 2017*
H1 2018
REGIONAL REVPAR TRENDS
GROUP REVPAR UP BY 0.5% AT CONSTANT RATES
LFL GROUP REVPAR UP BY 2.0%
Rest of Europe: RevPAR up due to increase in occupancy and average room rate of 1.0% points and 3.5% respectively.
New York: RevPAR up driven largely by the higher contribution from ONE UN.
Singapore: RevPAR down due to reduced occupancy. Higher room rates partly offsets the decline.
Rest of Asia: RevPAR up in most hotels including Taipei and Seoul.
Australasia: Excluding M Social and New Plymouth, RevPAR up by 4.5%.
Regional US: RevPAR down driven mainly by drop in occupancy.
London: Excluding Mayfair which saw a phased refurbishment during the period, London RevPAR was down by 4.4%.
(15.1%)
4.9%
6.0%
(1.6%)
(0.4%)
5.5%
7.3%
£
Restated at H1 2018 rates *
This presentation contains certain statements that are or may be forward-looking with respect to the financial condition, results or operations and business of Millennium &
Copthorne Hotels plc. By their nature forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the
future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements.
Undue reliance should not be placed on forward looking statements which speak only as of the date of this document. The Group accepts no obligation to publicly revise or update
these forward-looking statements or adjust them to future events or developments, whether as a result of new information, future events or otherwise, except to the extent legally
required.
THANK YOU