M&C’s H1 post-tax profit up 45%

Millennium and Copthorne (M&C) Hotels, the hotel arm of mainboard-listed City Developments (CDL), has reported that its post-tax headline profit rose some 45 per cent on-year to £36.5 million ($78.4 million) for the first half of this year.

This came on the back of 11 per cent rise in group revenue to about £350.5 million.

Revenue per available room (RevPAR) – an industry performance gauge – rose 9.3 per cent on a constant currency basis.

Meanwhile, its second-quarter post-tax headline profit increased 34 per cent to £22.3 million, while revenue for the three months rose 20 per cent to £190 million.

RevPAR in the quarter rose 14.7 per cent on a constant currency basis.

M&C chairman Kwek Leng Beng said the recovery in profits demonstrate continuing and effective cost management discipline amid better trading conditions.

“The biggest gains were seen in Singapore where RevPAR grew by a sterling 49.1 per cent in the second quarter and by 33.3 per cent over the six months as a whole,” he said. “Double digit gains were also made in New York and Rest of Asia.”

Mr Kwek added that although these figures are very strong, the group is mindful of the considerable macro-economic uncertainty over the next 12 to 18 months, especially in Europe and the United States.

He said the group will continue to be cautious in its approach, maintain a tight rein on costs and test very carefully its investment plans.

The board has declared an interim dividend of 2.08 pence, which is unchanged from last year.

Source : Today – 6 Aug 2010

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