Achieved 11% growth to HK$876 million in interim profit

Expecting steady elevation to continue in the second half

 

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

 

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$876 million, 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 the effect of the increased number of shares issued in the beginning of the reporting period pursuant to the bonus warrant scheme, basic earnings per share would have shown a growth in line with the Profit."

 

Unaudited underlying profit attributable to shareholders accounted for approximately HK$406 million surged significantly by 22% compared to the last corresponding period. The underlying earnings per share (basic) were HK$0.59, an increase of 4% compared to the last corresponding period.

 

Hotels and Serviced Apartments Business

 

Revenue from hotels and serviced apartments of the Group increased by 12% to HK$343 million during the reporting period, compared to 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 overnight visitor arrivals to Hong Kong, the occupancy and the average room rate of The Mira Hong Kong and Mira Moon under our Group raised for the first six months of the year.  

 

In order to maintain our competitive edge, on top of further strengthening the development of the MICE (meetings, incentives, conferences and exhibitions) segment, we have also stretched to business with extended revenue such as the establishment of one-stop unique event planning service brand.

 

Property Rental Business

 

The Group's property rental business recorded revenue of 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 since 2017 rebranding campaign is well recognized by the market.  To further enhance the distinctiveness of the mall, Mira Discovery Zone with about 20 unique designer brands was launched in the second quarter of the year, offering a vast array of choices and patronage experience.   

 

The refinement of tenant mix and utilization of repartitioned layouts have also contributed to the increase in the average occupancy and the rental income returns as a whole.

 

Food and Beverage Business

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

 

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

 

Travel Business

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

 

Corporate Finance

Adhering to a prudent principle, the Group has maintained its conservative financial policy.  Gearing, calculated by dividing consolidated total borrowings by the consolidated 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 fund its development programs for the foreseeable future.  As at 30 June 2018, total available credit facilities amounted to approximately HK$1.3 billion (31 December 2017: approximately HK$1.3 billion).  

 

As at 30 June 2018, consolidated net cash and bank balances were approximately HK$4.7 billion (31 December 2017: approximately HK$3.4 billion), of which HK$3 million were secured borrowings (31 December 2017: approximately HK$3 million).

 

Business Outlook

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

 

Looking forward, the outlook of the Group's performance for the second half of 2018 will grow steadily with momentum.  Management will continue not merely to enhance asset value and property portfolio, improve cost effectiveness and quality of service, but also proactively looking for suitable investment opportunities with a view of furnishing better returns to our shareholders and stakeholders." (mor/roc).