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Interim Results - six months to 30 June 2003

INTERCONTINENTAL HOTELS GROUP PLC
Interim Results - six months to 30 June 2003

  6 months to
30 June 2003*
£m
6 months to
30 June 2002*
£m
%
Change
Hotels      
  - EBITDA 162 194 (16.5)
  - Operating Profit 86 126 (31.7)
Soft Drinks      
  - EBITDA 61 57 7.0
  - Operating Profit 39 34 14.7
Group      
  - EBITDA 213 249 (14.5)
  - Operating Profit 114 157 (27.4)
       
Profit before Tax 92 133 (30.8)
Earnings per share 7.6p 11.2p (32.1)
* Pro forma numbers. Soft Drinks results to 5th July 2003 (6th July 2002).
  • Total Hotels operating profit down 23.6% in dollar terms, down 31.7% in sterling terms.
    • Americas operating profit flat at $134m with our owned and leased business continuing to gain market share, and our managed and franchised business remaining robust.
    • EMEA operating profit down £25m to £30m with the owned and leased business affected by the reduction in US visitors to the region and the depressed euro zone economy.
    • Asia Pacific down $15m to $5m as a consequence of the effect of the SARS virus during the period with the InterContinental Hong Kong particularly affected.
  • Soft Drinks recorded another excellent performance with volumes up 3.2%, turnover up 8.1%.
  • Revenue generation initiatives delivering results.
  • Cost savings on track, currently running at $61m annualised savings.
  • Tight control of our costs, capital expenditure and working capital has resulted in £98m operating cash inflow during the period and net debt below £1bn.
  • £227m of asset disposal proceeds generated since June 2003.

Richard North, Chief Executive, InterContinental Hotels Group PLC, said:

“Trading conditions in the first six months of this year have been as bad as anyone in the global hospitality industry can remember. Against this background we are focusing on the elements that we can control, namely revenue generation, reducing overhead costs and lowering capital intensity. We are beginning to deliver against these areas and are positioning ourselves for recovery when it comes.

When we reported last May we said that we saw no evidence of a sustained recovery in trading and so we were cautious as to near term trading prospects. I have to say that little has changed since then to alter our view.

More specifically, in the US we believe the improvement in RevPAR over the summer was leisure driven and we are yet to be convinced that there has been an upturn in demand from the business traveller.

In the UK we have seen some improvement in RevPAR particularly in the Regions. Western Europe remains uncertain and although Asia Pacific is continuing its recovery post SARS it has yet to regain all the ground lost.”

For further information, please contact:

Karen Whitworth, Investor Relations
020 7409 8231

Jo Guano, Investor Relations
020 7409 8134

Dee Cayhill/ Kathryn Holland, Corporate Affairs  
020 7409 8101

Teleconference

A teleconference, including a webcast of the teleconference presentation slides, will commence at 4.00 pm (London time) on 12th September. The conference call will conclude at approximately 4.30 pm (London time).

To join us for this conference call please dial the relevant number below by 4.00 pm (London time).

International dial-in    Tel: +44 (0) 1452 569 339
UK dial-in Tel: 0845 245 5300
USA dial-in Tel: 1866 629 0055

The webcast of the teleconference presentation slides will be available on the following web address: http://www.meetingcentre.net with the access code: 702133343.

Webcast

There will be a live audio webcast of the presentation of the results at 09.30 on the web address http://www.ihgplc.com/interimresults03. A video and audio webcast of the presentation is expected to be on this website later on the day of the results and will remain on this website for the foreseeable future.

Download full Interim Results announcement (PDF format)

Last updated 25 January 2008

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