DIVERSIFICATION PAYING OFF FOR MILLENNIUM & COPTHORNE
New Zealand hotel owner / operator, Millennium & Copthorne Hotels New Zealand
Limited (NZX:MCK), today announced its (unaudited) results for the six months
to 30 June 2012.
--Average hotel occupancy across the Group 63.3% (2011: 64.5%)
--Group revenue and other income $57.53 million (2011: $54.02 million)
--Profit before income tax and non-controlling interests $25.67 million
(2011: $7.90 million).
--Profit after tax and non-controlling interests $19.63 million (2011: $4.27
MCK''s Managing Director Mr. B K Chiu said that the Company''s results were
boosted by improved profits from its majority-owned land development
subsidiary CDL Investments and from its investment in China held by First
Sponsor Capital Limited.
"The results of our diversification are clearly shown and CDL Investments has
reported improved sales from Hamilton and Canterbury and First Sponsor has
recognized its profit from its Chengdu Cityspring development", he said.
MCK''s share of First Sponsor''s profit amounted to NZ $11.88 million. MCK is
a 34.21% shareholder in First Sponsor.
Speaking about MCK''s Hotel Operations, Mr. Chiu noted that visitor numbers
into New Zealand continued to be flat and while activity from China and South
Asia was offsetting some of the losses from more traditional markets, a
decrease in visitor numbers from Australia was also being felt.
On the company''s Christchurch operations, Mr. Chiu noted that MCK had reached
confidential settlements on the business interruption claims for two of its
Christchurch hotels and that repair work had also started on Millennium Hotel
"The good news is that these settlements were beneficial to us and they allow
us to move on. We have also renewed our insurances for 2012/13".
Mr. Chiu noted that repairs to Millennium Hotel Christchurch, a leased
property, will take about two years on current estimates and MCK was not
taking any reservations until 2014. The company was yet to receive a final
engineering recommendation for Copthorne Hotel Christchurch Central, a hotel
which is owned by MCK.
Despite these challenges, Mr. Chiu said that the Company remained positive
about the rest of the year.
"We are aiming to reflect the increased profitability from our land
development business units in particular in our 2012 results to our
shareholders", he said.
Issued by Millennium & Copthorne Hotels New Zealand Ltd
Any inquiries please contact:
B K Chiu, Managing Director
Millennium & Copthorne Hotels New Zealand Ltd
(09) 913 8058
End CA:00225606 For:MCK Type:GENERAL Time:2012-08-02 17:00:29