Shangri-La Asia (69) H2 2024 earnings summary

Executive summary

• Consolidated revenue rose 2.0% year-over-year to USD2,185.4 million, driven by stable hotel operations and strong investment property performance.

• Profit attributable to owners fell 12.3% to USD161.4 million, mainly due to lower EBITDA and reduced non-operating gains.

• Record-high free cash flow of USD273 million achieved, supporting financial flexibility and strategic initiatives.

• Full-year dividend maintained at HK15 cents per share.

Financial highlights

• Effective share of revenue decreased 4.2% to USD2,653.6 million, mainly from a 73.9% drop in Property Development for Sale revenue.

• Effective share of EBITDA declined 13.0% to USD760.1 million, with Property Development for Sale EBITDA down 87.9%.

• Earnings per share fell 12.2% to 4.54 US cents.

• Net assets attributable to owners stood at USD5,183.5 million, down 0.7% year-over-year.

• Adjusted NAV per share, if hotel properties were at fair value, would be USD3.04 versus reported USD1.46.

Outlook and guidance

• Focus remains on enhancing returns, cost vigilance, and selective, returns-focused project undertakings.

• Continued expansion through managed contracts and dual-brand strategies, with new openings in Shenzhen, Phnom Penh, and Kunming.

• Rejuvenation and new concepts at flagship properties to drive guest experience and returns.