Miramar Hotel and Investment Company, Limited Announces 2018 Interim Results

August, 19/2018 - 12:10
Miramar Hotel and Investment Company, Limited Announces 2018 Interim Results

Achieved11% growth to HK$876 million in interim profit
Expectingsteady elevation to continue in the second half

 

HONG KONG, CHINA - MediaOutReach - 19August 2018 - Miramar Hotel and Investment Company, Limited ('Miramar" or 'theGroup", HKSE stock code: 71) announced on 17 August the unaudited interim results for the six monthsended 30 June 2018.

 

 

HK$ Million

For the six months ended 30 June

2018

2017

Change

Revenue

1,600

1,559

  3 %

Underlying profit attributable to shareholders*

 

406

333

22%

Underlying earnings per share (Basic)*

 

59 cents

 57 cents

4%

Interim dividend per share

24 cents

23 cents

  4%

 

* Underlying profit attributable to shareholders andunderlying earnings per share (basic) are calculated by excluding the post-taxeffects of the investment properties revaluation movements and othernon-operating and non-recurring items such as net gain on disposal of asubsidiary

 

For the six months ended 30 June 2018 (the"Reporting Period"), the Group's unaudited revenue was HK$1,600 million,representing a growth of 3% compared to the six months ended 30 June 2017 (the"Last Corresponding Period"). Profit for the reporting period, at HK$876million, increased by 11% compared to the last corresponding period. Basic earnings per share recorded a decrease of 7% to HK$1.25 (2017:HK$1.34) compared to the last corresponding period.

 

Mr.Lai Ho Man, Miramar's Director of Group Finance, said, "Taking into account theeffect of the increased number of shares issued in the beginning of thereporting period pursuant to the bonus warrant scheme, basic earnings per sharewould have shown a growth in line with the Profit."

Unaudited underlying profitattributable to shareholders accounted for approximately HK$406 million surgedsignificantly by 22% compared to the last corresponding period. The underlyingearnings per share (basic) were HK$0.59, an increase of 4% compared to the lastcorresponding period.

 

Hotels and ServicedApartments Business

Revenue from hotels and serviced apartments of theGroup increased by 12% to HK$343 million during the reporting period, comparedto corresponding period of last year. EBITDA (earnings before interest, taxes, depreciation and amortization)amounted to HK$130 million, representing an increase of 20%.

 

Benefited from the increase in overall and overnightvisitor arrivals to Hong Kong, the occupancy and the average room rate of TheMira Hong Kong and Mira Moon under our Group raised for the first six months ofthe year.  In order to maintain ourcompetitive edge, on top of further strengthening the development of the MICE(meetings, incentives, conferences and exhibitions) segment, we have alsostretched to business with extended revenue such as the establishment ofone-stop unique event planning service brand.

 

Property RentalBusiness

The Group's property rental business recorded revenueof approximately HK$457 million; EBITDA was approximately HK$406 million, with 9%growth comparing to the last corresponding period.

 

The new brand image and position of Mira Place since2017 rebranding campaign is well recognized by the market.  To further enhance the distinctiveness of themall, Mira Discovery Zone with about 20 unique designer brands was launched inthe second quarter of the year, offering a vast array of choices and patronageexperience.   The refinement of tenant mixand utilization of repartitioned layouts have also contributed to the increasein the average occupancy and the rental income returns as a whole.

 

Food and BeverageBusiness

The Group's food and beverage business registeredrevenue of approximately HK$164 million and EBITDA of approximately HK$2.6million during the reporting period.

 

The Group's food and beverage business overall hasrecorded slim profit.  We will continueto review the brand compositions, business models and development strategies ofthe food and beverage business under the Group, aiming to strengthen therevenue drivers alongside our cost effective-oriented business philosophy.  There are plans in further develop andestablish more diversified dining concepts. 

 

Travel Business

During the reporting period, revenue from our travelbusiness amounted to approximately HK$636 million, similar to lastcorresponding period.  EBITDA amounted toapproximately HK$30 million which representing a growth of 147%, compared tolast corresponding period.  Overall thegroup outbound business has recorded remarkable performance.

 

Corporate Finance

Adhering to a prudent principle, the Group hasmaintained its conservative financial policy. Gearing, calculated by dividing consolidated total borrowings by theconsolidated total shareholders' equity, was 0.1 % as at 30 June 2018 (31 December 2017: 0.1%).

 

The Group is buttressed by a large cash pool to fundits development programs for the foreseeable future.  As at 30 June 2018, total available credit facilitiesamounted to approximately HK$1.3 billion (31 December 2017: approximately HK$1.3billion).  As at 30 June 2018,consolidated net cash and bank balances were approximately HK$4.7 billion (31December 2017: approximately HK$3.4 billion), of which HK$3 million weresecured borrowings (31 December 2017: approximately HK$3 million).

 

BusinessOutlook

Inresponse to the results in the first half of 2018 and the business outlook ofthe Group, Mr. Lee Ka Shing, Miramar Group's Chairman and CEO, said, "With theGroup's on-going solid financial position and adaptive business strategies, weare confident in preparing to respond favorably to the economic cycle.

 

Looking forward, the outlook of the Group'sperformance for the second half of 2018 will grow steadily with momentum.  Management will continue not merely toenhance asset value and property portfolio, improve cost effectiveness andquality of service, but also proactively looking for suitable investmentopportunities with a view of furnishing better returns to our shareholders andstakeholders."

 

About Miramar Hotel and Investment Company,Limited

Establishedin Hong Kong in 1957, Miramar Hotel and Investment Company, Limited (MiramarGroup) is a group with a diversified service-oriented business portfoliocomprising stylish hotels and serviced apartments, property rental, food andbeverage, and travel services in Hong Kong and Mainland China. Miramar Grouphas been listed on the Hong Kong Stock Exchange since 1970 (HKEx Stock Code:71) and is a member of Henderson Land Group.


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