InterContinental Hotels H1 Profit Declines

(RTTNews) - InterContinental Hotels Group Plc (IHG, IHG.L) reported Tuesday lower profit in its first-half, mainly impacted by weak revenues in Americas and Europe. Looking ahead, the firm remains encouraged by current trading trends, despite political or economic uncertainty in several of its key markets.

For the six-month period, pre-tax profit fell to $377 million from $462 million last year. Adjusted pre-tax profit, which excluded net exceptional credit of $106 million mainly on asset disposals, was $271 million, compared with $302 million a year ago.

Profit attributable to equity holders of the parent was $238 million or 91.9 cents per share, versus $340 million or 126.4 cents per share last year.

Adjusted attributable profit was $181 million or 69.9 cents per share, compared with $208 million or $77.3 cents per share a year ago.

Operating profit declined 8 percent on a reported basis, but increased 6 percent on an underlying basis.

Total gross revenue from hotels in IHG's system, i.e., from total room revenue from franchised hotels and total hotel revenue from managed, owned and leased hotels, was $11.1 billion, a growth of 7 percent from last year.

Revenue from continuing operations for the first half dropped 3 percent to $908 million from $936 million last year. The weak revenues in Americas and Europe regions were partly offset by improved results at Asia, Middle East And Africa or AMEA and central regions. Greater China remained flat.

On an underlying basis, group revenues grew 4 percent year-over-year to $788 million.

Fee revenue improved 7 percent to $600 million.

Global comparable Revenue per available room or RevPAR growth was 5.8 percent, with average daily rate increasing 2.3 percent.

In the second quarter, comparable RevPAR went up 5.7 percent.

Further, the company said its Board has proposed an interim dividend per ordinary share of 25 cents or 14.8 pence.

In London, IHG shares are losing 40 pence or 1.69 percent, and trading at 2,325 pence.