Millennium & Copthorne lifts half-year profit

Millennium & Copthorne Hotels NZ Ltd lifted its half-year profit after tax & non-controlling interests by 93% to $12.01 million ($6.22 million), but expects a similar full-year result to 2014 as returns are reduced while the Copthorne Hotel Auckland Harbourcity is refurbished.

Half-year profit before income tax & non-controlling interests was up 36.4% to $20.38 million ($14.94 million), which managing director BK Chiu said was largely driven by improved operating performance at the company’s New Zealand hotels generally and continued profitability from its majority-owned land development subsidiary, CDL Investments NZ Ltd.

Group revenue increased 3.8% to $69.95 million ($67.41 million) and gross profit increased 7.9% to $39.26 million ($36.37 million). Consequently, operating profit for the period increased 16% to $20.16 million ($17.38 million). Earnings/share increased 4.4 times to 7.59c/share (1.4c/share).

Mr Chiu said total revenue for the New Zealand hotel operations (13 owned or leased & operated hotels, excluding 8 franchised properties) increased to $44.68 million ($40.57 million). Occupancy increased to 78.2% (72.7%), allowing for the closure of the 3 Christchurch cbd hotels. Revpar (revenue per available room) increased by 15.8% to $94.75 ($81.80).

The company is refurbishing 41 rooms at the Copthorne Hotel & Resort Queenstown Lakefront, expected to be finished by the end of the year, and announced the start of the $50 million Copthorne Hotel Auckland Harbourcity (Quay St) refurbishment last week. The Auckland hotel will be closed until early 2017.

CDL Investments NZ Ltd said yesterday its after-tax operating profit fell by 3.6% in the first half to $8.2 million ($8.5 million last year), on pretax profit up 2.6% to $11.7 million ($11.4 million) and revenue down 4.1% to $23.9 million ($24.9 million).

The company sold 128 sections in the latest period, down from 133 this time last year.

Net asset backing increased by 7.4% to 47.6c/share (44.3c).

In Sydney, occupancy at the Zenith Residences on King’s Cross was steady at 97%. Mr Chiu said the company had made good progress in resolving litigation affecting a majority-owned subsidiary.

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Attribution: Company release.

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