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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

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


-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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