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Efficiency and deleveraging at NH Hotel Group pave the way for faster growth in recurring net profit than in EBITDA

Guidance for FY18 reiterated on back of strong first-half performance and positive outlook

Efficiency and deleveraging at NH Hotel Group pave the way for faster growth in recurring net profit than in EBITDA

Guidance for FY18 reiterated on back of strong first-half performance and positive outlook

Category: Worldwide - Industry economy - Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2018-07-31


-1H18 results-

  • Strong performance in the hotel business in all markets, particularly Benelux and Italy, where like-for-like revenue rose 7.4% and 5.7%, respectively, drove overall topline growth of 3.9% to €785.5 million, despite the impact of currency evolution (+5.8% in constant currency terms) and the timing impact of the holiday calendar in 2Q
  • The combination of growth in the ADR and occupancy drove an increase in RevPAR of 2.2%, with NH Hotel Group outperforming its direct competitors in its main destinations
  • Revenue growth, coupled with cost control, paved the way for EBITDA(1) of €115 million, up €12 million year-on-year, implying a revenue growth-to-EBITDA conversion ratio(1) of 40%
  • Stronger business momentum and lower finance costs drove significant increase in recurring net profit, reaching €23 million (+€14.3 million vs. first half 2017 and higher than EBITDA(1) growth)
  • Reported net profit amounted to €64.3 million, up €56.7 million year-on-year, underpinned by business momentum and the contribution by gains on assets rotation during the reporting period
  • The early conversion of the Group's €250 million convertible bonds, strong operating cash flow generation and the proceeds from asset rotation enabled a significant reduction in net debt to €229 million, down €426 million from year-end 2017
  • As ratified by the Annual General shareholders Meeting, the Company will pay a gross €0.10 per share dividend on 27 July 2018, implying an estimated outlay of €39 million



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