Shangri-La Asia (69) H1 2024 earnings summary

Executive summary

• Revenue rose 4.3% year-over-year to USD1,049.1 million for 1H24, driven by hotel business recovery and increased occupancy.

• Profit attributable to owners before non-operating items was USD59.1 million, down 8.5% year-over-year; after non-operating items, profit was USD94.5 million, down 28.1%.

• Free cash flow turned positive for the first time in five years, reaching USD46.3 million in 1H24.

• Interim dividend of HK5 cents per share declared, the first in five years, reflecting improved free cash flow and financial stability.

• EBITDA declined 5.2% year-over-year to USD252.3 million, with EBITDA margin at 24.1%, down 2.3 percentage points.

Financial highlights

• Effective share of EBITDA (including associates) declined 3.8% to USD381.5 million.

• Earnings per share fell 27.8% to 2.661 US cents.

• Net assets attributable to owners stood at USD5,162.5 million, down 1.1% from year-end 2023.

• Group RevPAR increased 0.7% year-over-year to USD103.7.

• Free cash flow improved from negative USD14.6 million in the prior year period.

Outlook and guidance

• Management expects continued growth but notes macro challenges such as subdued consumer confidence and inflation risks.

• Strategic focus remains on portfolio revamp, selective investment, and cost vigilance to drive sustainable growth and shareholder returns.

• Expansion in Mainland China continues, with new hotel and commercial openings planned through 2026.