Miramar Hotel and Investment Company, Limited Announces 2019 Interim Results

August, 16/2019 - 02:11
Miramar Hotel and Investment Company, Limited Announces 2019 Interim Results

HONG KONG, CHINA - MediaOutReach - 15 August2019 - Miramar Hotel and Investment Company, Limited ('Miramar" or 'the Group",HKSE stock code: 71) announced today the unaudited interim results for the six months ended 30 June2019.

 

 

HK$ Million

For the six months ended 30 June

2019

2018

Change

Revenue

1,586

1,600

  -0.9%

Underlying profit attributable to shareholders*

 

420

406

3.4%

Underlying earnings per share (Basic)*

 

61 cents

 59 cents

3.4%

Interim dividend per share

24 cents

24 cents

  0%

 

* 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

 

The Group's revenue for the six months ended 30June 2019 (the ''Reporting Period'') amounted to approximately HK$1,586million, similar to the six months ended 30 June 2018 (the "Last CorrespondingPeriod"). Profit attributable to shareholders for the reporting perioddecreased by 10.1% to HK$770million. Mr. Lai Ho Man, Miramar's Director of Group Finance, said, "theGroup's property rental business and travel business both registered growth butthe net increase in fair value of our investment properties was comparativelylower than the last corresponding period."


Excluding the net increase ofHK$350 million in the fair value of the investment properties and other netgain from non-core businesses, the underlying profit attributable toshareholders increased by 3.4% to approximately HK$420 million. The underlying earningsper share (basic) have risen by 3.4%, compared to the last correspondingperiod, to HK$0.61.

 

Hotels and ServicedApartments Business

Revenue from hotels and serviced apartments of the Group decreased by3.5% to HK$330 million during the reporting period, compared to the last correspondingperiod.  EBITDA (earnings beforeinterest, taxes, depreciation and amortization) declined 8.6% to HK$119 million.


With the weakening market and the rocketing room supply in Tsim Sha Tsuiarea, occupancy rates of The Mira Hong Kong and Mira Moon Hotel of the Groupremained stable at over 90% in the first six months, whilst the average roomrate for available rooms maintained at similar levels as in the lastcorresponding period.

 

Property RentalBusiness

Revenue from property rental business was HK$462 million, with EBITDAamounting to HK$409 million, representing steady rises of 1% and 0.6% respectively comparedwith the last corresponding period.


The Group continued to upgrade the overall image and positioning of itsproperty assets by constantly improving its facilities and service quality. Furtherto the launch of the Mira Place mobile application in 2017, the Group launchedHong Kong's first new smart parking solution for shopping mall "e-PARKING",which has simplified the parking process and take customer experience to thenext level, and won the Silver Award of the Hong Kong ICT Awards 2019 - SmartMobility Award (Smart Transportation). In addition, Mira Place regularlylaunched popular promotional activities and contributed to the increase inaverage footfall and overall tenants' sales. 

 

Food and BeverageBusiness

The Group's food and beverage business registered revenue of approximatelyHK$137 million, while EBITDA was approximately HK$15 million, representing adrop of 16.3% and an increase of 452.2% respectively over the lastcorresponding period.


Throughout the reporting period, the management committed to optimise the business portfolio by focusing to improve the restaurants'operational efficiency and to terminate unprofitable outlets. Such measuresresulted in a significant improvement in EBITDA during the reportingperiod.  The management will continue to strivefor enhancement in service and product quality, and to adopt effective measuresto improve performance.

 

Travel Business

Revenue from travel business was HK$657 million, 3.2% up from the last corresponding period.  EBITDA recorded approximately HK$44 million, an increaseof 48.1% compared to the same period of last year.

 

Corporate Finance

As of 30 June 2019, the gearing ratio (calculated as total consolidatedborrowings divided by total consolidated shareholders' equity) was merely 0.1%(31 December 2018: 0.1%).


The Group adopts a prudent financial policy, with sufficient funds andcredit lines to cope with the uncertain economic environment in the foreseeablefuture and to carry out business development plans that offer good investmentyields. As of 30 June 2019, the total banking facilities obtained amounted toapproximately HK$1.3 billion (31 December 2018: HK$1.3 billion), of which 0.2%(31 December 2018: 0.2%) was used. On 30 June 2019, consolidated net cash wasapproximately HK$5.2 billion (31 December 2018: HK$4.7 billion), and loansamounted to HK$2.83 million (31 December2018: HK$2.85 million).

 

BusinessOutlook

Inresponse to the results in the first half of 2019 and the business outlook ofthe Group, Mr. Lee Ka Shing, Miramar Group's Chairman and CEO said, "HongKong's economy moderated to tepidity in the first half of 2019 under theconstriction of the US-China trade tensions. Since the beginning of the secondhalf of the year, uncertainties arising from Hong Kong's social atmosphere andglobal political economy, which are characterised by great complexity andvicissitude, have further weakened general market sentiments and rendered theGroup a more arduous business environment. However, the Group is confident tocope with the challenging economic cycles with the backing of its solidfinancial position. I will continue to lead the Group's management teamvigilantly in perpetrating our goals of improving service quality andstrengthening operational efficiency, while at the same time on the lookout forappropriate investment opportunities with a view to increasing shareholderreturn."


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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