Millennium & Copthorne Hotels New Zealand (MCK) H2 2024 earnings summary

Executive summary

• Revenue rose 21.0% year-over-year to $176.2m, marking the highest result in five years.

• Operating profit increased 32.1% year-over-year to $42.5m, with profit before tax up 25.6% to $47.1m.

• Profit after tax was $2.8m, impacted by a one-off, non-cash deferred tax adjustment; excluding this, profit after tax would be $27.2m.

• Growth driven by strong performance in the NZ hotel business and stabilization in the property market.

• Continued investment in hotel refurbishments, upgrades, and network expansion, including new acquisitions.

Financial highlights

• Total assets reached $762.3m, up from $746.8m in 2023.

• Book value of property assets was $694.1m; fair market value assessed at $1.1b as of 31 December 2024.

• Net cash position of $41.3m at year-end; bank debt at $3.0m.

• No final dividend declared for FY24 due to ongoing takeover offer conditions.

Outlook and guidance

• Anticipates recovery in tourism and property markets in 2025, benefiting both hotel and property segments.

• Expects increased profit contribution from the Sofitel Brisbane Hotel joint venture in FY25.

• Refurbishment and upgrades to drive increased room capacity and sales in 2025.