Shangri-La 2Q profit rises 5.6%, declares 3 sen dividend

by **Cals** Fri 22 Aug 2014, 01:26

Business & Markets 2014

Written by Kamarul Anwar of theedgemalaysia.com

Thursday, 21 August 2014 20:30

KUALA LUMPUR (Aug 21): Shangri-La Hotels (Malaysia) Bhd has reported a 5.62% rise in net profit to RM17.51 million for the second quarter ended Jun 30, 2014 (2QFY14) from RM16.58 million a year earlier.

Earnings per share rose to 3.98 sen from 3.77 sen, the hotel operator said in a filing with Bursa Malaysia.

The group also declared an interim single tier dividend of three sen per share for FY14, the same amount as that paid for FY13.

As for revenue, Shangri-La raked in RM120.66 million for 2QFY14, which is 1.78% higher than the RM118.56 million posted in 2QFY13.

For the first half of 2014 (1HFY14), Shangri-La’s net profit stood at RM45.45 million or 10.33 sen per share. This is 12.48% higher than the previous corresponding period’s net profit of RM40.41 million or 9.18 sen per share.

Revenue meanwhile inched up by 4.72% to RM257.67 million from RM246.06 million a year ago.

“The improvement in the group’s financial performance in the first half (of) 2014 was underpinned mainly by a significant growth in the operating results from Rasa Ria Resort (in Kota Kinabalu),” Shangri-La explained in the notes accompanying its 2QFY14 financials.

The hotel operator said its Rasa Ria Resort saw a 26% rise in its pretax profit for 1HFY14 to RM14.61 million, on the back of a strong uplift in the average room rate and higher sales of food and beverage. Adding to this is a rise in occupancy rate to 74% from 71% in the previous corresponding period.

Commenting on its 2HFY14’s prospects, Shangri-La said its hotel business should stay stable despite “some economic uncertainties”.

“The group’s hotels and resorts should continue to benefit from their strong competitive positions and do reasonably well for the remainder of 2014,” it added.

However, the group noted that its Rasa Sayang Resort in Batu Ferringhi, Penang, will see further disruptions to its business operations as its major refurbishment works in the Garden Wing’s guestrooms are scheduled to be completed in December.

“For the group’s investment properties, occupancy levels at UBN Tower should hold up well with fairly steady demand conditions in the prime office rental market in Kuala Lumpur, while the outlook for UBN Apartments remains subdued against a challenging market environment,” added Shangri-La.