InterContinental Hotels FY24 Profit Down, Lifts Dividend, Plans $900 Mln Buyback; Sees Growth Ahead

(RTTNews) - InterContinental Hotels Group PLC (IHG, IHG.L) Tuesday reported weak profit in its fiscal 2024, despite higher revenues. Further, the Board proposed another 10 percent increase in the dividend, and announced the launch of a new $900 million share buyback programme.

Looking ahead, the company targets compound growth in adjusted earnings per share of 12 percent to 15 percent annually on average over the medium to long term.

Elie Maalouf, Chief Executive Officer, said, "We enter 2025 with confidence in further capitalising on our scale, leading positions and the attractive longterm demand drivers for our markets, all of which supports the ongoing successful delivery of our growth algorithm."

IHG also announced that it has acquired the Ruby brand and related intellectual property for initial purchase consideration of 110.5 million euros or around $116 million. Ruby is a premium urban lifestyle brand for modern travellers in must-visit city destinations.

For the year 2024, IFRS profit before tax dropped 11.2 percent to $897 million from last year's $1.01 billion. Basic earnings per share were 389.6 US cents, down 12.2 percent from 443.8 US cents a year ago.

Adjusted earnings per share were 432.4 US cents, compared to 375.7 US cents a year ago.

Operating profit was $1.04 billion, down 2 percent from last year. Adjusted EBITDA grew 9.5 percent to $1.19 billion.

Total gross revenue grew 6 percent from last year to $33.4 billion. Total IFRS revenue went up 6 percent to $4.92 billion from last year's $4.62 billion.

Global RevPAR increased 3.0 percent in the year and 4.6 percent in the fourth quarter.

Further, the Board proposed a final dividend of 114.4 cents per share, up 10 percent from last year, resulting in a total dividend for the year of 167.6 cents, a growth of 10 percent.

The company also announced that it will commence a share buyback programme to purchase ordinary shares of 20340/399 pence each in the Company with aggregate value of up to $900 million.

The purpose of the Programme is to reduce the issued share capital of the Company.

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