Miramar Hotel and Investment Company, Limited Announces 2019 Interim Results

HONG KONG, CHINA -�Media
OutReach - 15 August
2019 – Miramar Hotel and Investment Company, Limited (‘Miramar” or ‘the Group”,
HKSE stock code: 71) announced today the unaudited interim results for the six months ended 30 June
2019.

 

HK$ Million	For the six months ended 30 June
	2019	2018	Change
Revenue	1,586	1,600	–0.9%
Underlying profit attributable to shareholders*	420	406	3.4%
Underlying earnings per share (Basic)*	61 cents	59 cents	3.4%
Interim dividend per share	24 cents	24 cents	0%

 

* Underlying profit attributable to shareholders and
underlying earnings per share (basic) are calculated by excluding the post-tax
effects of the investment properties revaluation movements and other
non-operating and non-recurring items such as net gain on disposal of a
subsidiary

 

The Group’s revenue for the six months ended 30
June 2019 (the ”Reporting Period”) amounted to approximately HK$1,586
million, similar to the six months ended 30 June 2018 (the “Last Corresponding
Period”). Profit attributable to shareholders for the reporting period
decreased by 10.1% to HK$770
million. Mr. Lai Ho Man, Miramar’s Director of Group Finance, said, “the
Group’s property rental business and travel business both registered growth but
the net increase in fair value of our investment properties was comparatively
lower than the last corresponding period.”

Excluding the net increase of
HK$350 million in the fair value of the investment properties and other net
gain from non-core businesses, the underlying profit attributable to
shareholders increased by 3.4% to approximately HK$420 million. The underlying earnings
per share (basic) have risen by 3.4%, compared to the last corresponding
period, to HK$0.61.

 

Hotels and Serviced
Apartments Business

Revenue from hotels and serviced apartments of the Group decreased by
3.5% to HK$330 million during the reporting period, compared to the last corresponding
period.  EBITDA (earnings before
interest, taxes, depreciation and amortization) declined 8.6% to HK$119 million.

With the weakening market and the rocketing room supply in Tsim Sha Tsui
area, occupancy rates of The Mira Hong Kong and Mira Moon Hotel of the Group
remained stable at over 90% in the first six months, whilst the average room
rate for available rooms maintained at similar levels as in the last
corresponding period.

 

Property Rental
Business

Revenue from property rental business was HK$462 million, with EBITDA
amounting to HK$409 million, representing steady rises of 1% and 0.6% respectively compared
with the last corresponding period.

The Group continued to upgrade the overall image and positioning of its
property assets by constantly improving its facilities and service quality. Further
to the launch of the Mira Place mobile application in 2017, the Group launched
Hong Kong’s first new smart parking solution for shopping mall “e-PARKING”,
which has simplified the parking process and take customer experience to the
next level, and won the Silver Award of the Hong Kong ICT Awards 2019 – Smart
Mobility Award (Smart Transportation). In addition, Mira Place regularly
launched popular promotional activities and contributed to the increase in
average footfall and overall tenants’ sales. 

 

Food and Beverage
Business

The Group’s food and beverage business registered revenue of approximately
HK$137 million, while EBITDA was approximately HK$15 million, representing a
drop of 16.3% and an increase of 452.2% respectively over the last
corresponding period.

Throughout the reporting period, the management committed to optimise the business portfolio by focusing to improve the restaurants’
operational efficiency and to terminate unprofitable outlets. Such measures
resulted in a significant improvement in EBITDA during the reporting
period.  The management will continue to strive
for enhancement in service and product quality, and to adopt effective measures
to improve performance.

 

Travel Business

Revenue from travel business was HK$657 million, 3.2% up from the last corresponding period.  EBITDA recorded approximately HK$44 million, an increase
of 48.1% compared to the same period of last year.

 

Corporate Finance

As of 30 June 2019, the gearing ratio (calculated as total consolidated
borrowings divided by total consolidated shareholders’ equity) was merely 0.1%
(31 December 2018: 0.1%).

The Group adopts a prudent financial policy, with sufficient funds and
credit lines to cope with the uncertain economic environment in the foreseeable
future and to carry out business development plans that offer good investment
yields. As of 30 June 2019, the total banking facilities obtained amounted to
approximately HK$1.3 billion (31 December 2018: HK$1.3 billion), of which 0.2%
(31 December 2018: 0.2%) was used. On 30 June 2019, consolidated net cash was
approximately HK$5.2 billion (31 December 2018: HK$4.7 billion), and loans
amounted to HK$2.83 million (31 December
2018: HK$2.85 million).

 

Business
Outlook

In
response to the results in the first half of 2019 and the business outlook of
the Group, Mr. Lee Ka Shing, Miramar Group’s Chairman and CEO said, “Hong
Kong’s economy moderated to tepidity in the first half of 2019 under the
constriction of the US-China trade tensions. Since the beginning of the second
half of the year, uncertainties arising from Hong Kong’s social atmosphere and
global political economy, which are characterised by great complexity and
vicissitude, have further weakened general market sentiments and rendered the
Group a more arduous business environment. However, the Group is confident to
cope with the challenging economic cycles with the backing of its solid
financial position. I will continue to lead the Group’s management team
vigilantly in perpetrating our goals of improving service quality and
strengthening operational efficiency, while at the same time on the lookout for
appropriate investment opportunities with a view to increasing shareholder
return.”

About Miramar Hotel and Investment Company, Limited

Established
in Hong Kong in 1957, Miramar Hotel and Investment Company, Limited (Miramar
Group) is a group with a diversified service-oriented business portfolio
comprising stylish hotels and serviced apartments, property rental, food and
beverage, and travel services in Hong Kong and Mainland China. Miramar Group
has been listed on the Hong Kong Stock Exchange since 1970 (HKEx Stock Code:
71) and is a member of Henderson Land Group.