Shangri-La Asia (69) H1 2024 earnings summary

Executive summary

• Revenue grew 4.3% year-over-year to USD1,049.1 million for the six months ended 30 June 2024, driven by hotel business recovery and increased occupancy from a low base in 2023.

• Profit attributable to owners before non-operating items fell 8.5% to USD59.1 million, and after non-operating items dropped 28.1% to USD94.5 million, mainly due to lower foreign exchange and fair value gains.

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

Financial highlights

• EBITDA decreased 5.2% year-over-year to USD252.3 million; 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.

• Free cash flow turned positive at USD46.3 million, a significant improvement 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.