IHG Plc Preliminary 2018 Pretax Profit Declines; Underlying Revenue Up 5.7%

(RTTNews) - InterContinental Hotels Group plc (IHG.L, IHG) reported profit before tax of $485 million for the 12 months ended 31 December, 2017, down 26.1%, due to a $108 million increase in exceptional costs, largely associated with restructuring costs related to the comprehensive efficiency programme as well as a $112 million higher in-year System Fund deficit. Operating profit from reportable segments improved 8% to $816 million. Underlying operating profit improved 6% to $805 million.

Group earnings per share was 182.8 cents compared to 278.4 cents. Adjusted earnings per share was 289.1 cents compared to 243.3 cents. Underlying basic earnings per ordinary share was 290.5 cents compared to 244.6 cents.

During the year ended 31 December 2018, total revenue increased by 6.4% to $4.34 billion, whilst revenue from reportable segments increased by 11.7% to $1.93 billion, primarily resulting from 4.8% rooms growth, 2.5% comparable RevPAR growth and the addition of a portfolio in the UK. Underlying revenue increased by 5.7%, for the period. Comparable RevPAR increased by 2.5%, for the fiscal year.

The Board has proposed a final dividend per ordinary share of 78.1 cents. With the interim dividend per ordinary share of 36.3 cents, the full-year dividend per ordinary share for 2018 will total 114.4 cents, an increase of 10% over 2017.