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Interim Results

Millennium & Copthorne improves 9mth revenue

02 November 2016 07:46

Millennium & Copthorne has improved its 9-month total revenue to £665m, from £615m, with pretax profit for the period rising to £102m, from £98m.

RevPAR was £73.94, from £71.43.

"Our London hotels have seen some positive benefits from leisure travellers following the EU referendum in June 2016 although the outlook for the UK economy is uncertain," said chair Kwek Leng Beng.

"We have also seen an improving trend in the regional US and growth in the New Zealand markets; and benefited from favourable foreign exchange movements.

"However, trading of our New York and Singapore hotels was disappointing and we continued to focus on improving margins.

"We are monitoring the performance in all our markets closely and the Group's financial position remains strong. The Group has a long term perspective and considers asset ownership as key to its strategy."

HIGHLIGHTS:

- The steep fall in the value of sterling after the 23 June 2016 referendum had a significant impact on Group's results, with exchange gains adding £43m and £7m to Group reported revenue and profit before tax respectively for the first nine months of 2016.

- Group RevPAR in reported currency was up 3.5% but in constant currency fell by 3.2% in the first nine months of 2016 compared to the same period last year.

- Total revenue in reported currency for the first nine months grew by 8.1% to £665m, due to higher land sales and REIT revenue and exchange gains; partially offset by lower hotel revenue. In constant currency, revenue grew slightly by 1.1% for the same period.

- Hotel revenue in constant currency declined by 2.8% to £581m during the first nine months of 2016. In reported currency, hotel revenue increased by 3.9% to £581m (2015: £559m).

- Third-quarter occupancy increased by 4.8% points for the Group's London hotels, reflecting higher inbound tourism.

- Profit before tax in constant currency for the third quarter of 2016 increased by 9.5% and by 27.8% in reported currency. For the first nine months of 2016, profit before tax increased by 4.1% in reported currency and decreased by 2.9% in constant currency.

Story provided by StockMarketWire.com

Related Company: MLC

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