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

Executive summary

• Revenue reached $176.2m, up 21.0% year-over-year, marking the highest in five years.

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

• Profit after tax was $2.8m, impacted by a one-off, non-cash deferred tax adjustment of $25.8m; excluding this, profit after tax would be $27.2m.

• Total assets grew to $762.3m, with property assets at a book value of $694.1m and fair market value of $1.1b as of 31 December 2024.

• Net asset backing per share on market value basis was $5.39.

Financial highlights

• Hotel revenue was $109.5m, property sales $62.7m, and rental income $4.0m for the year.

• Gross profit increased to $97.9m from $77.8m in 2023.

• Net cash position at year-end was $41.3m, with bank debt at $3.0m.

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

Outlook and guidance

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

• Refurbishment and upgrades of key hotel properties are nearly complete, increasing room capacity for 2025.

• CDI to advance development works, especially in Hamilton and Hawkes Bay, with critical projects underway.