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Pro forma Results for the Six Months to 31 March 2003

Pro forma Results for the Six Months to 31 March 2003

  • Strong management action mitigates impact of tough industry conditions
    • cost reduction programme on track
    • new management team in place
    • asset review well underway
    • capital expenditure reduction
  • Group EBITDA down only 6.7% to £196m demonstrating the underlying trading strengths in both the Hotels and Soft Drinks businesses.
  • Total hotel operating profits down 19.9% in dollar terms but down 27.5% in sterling terms as a result of the weakness in the dollar.
  • Americas operating profit flat at $107m reflecting the strength and resilience of our midscale franchise business and its strong presence in the 'drive to' market in the US.
  • EMEA down 30.6% to $50m with the upscale owned & leased hotels adversely affected by the fall in international travel, particularly from the US.
  • Asia Pacific up 25% to $25m driven primarily by an excellent performance from the InterContinental Hong Kong where RevPAR was up 30% over last year. SARS, however, severely reduced occupancy in key cities, particularly Hong Kong, in the last two weeks of the period.
  • Soft Drinks operating profit at a record £20m up 25% against the prior year, another exceptional year for the business.
  6 months to
31 March 2003
6 months to
31 March 2002
- EBITDA 156 174 (10.3)
- Operating Profit 79 109 (27.5)
Soft Drinks      
- EBITDA 46 38 21.1
- Operating Profit 20 16 25.0
- EBITDA 196 210 (6.7)
- PBT 68 99 (31.3)
Earnings per share 6.0p 8.9p (32.6)

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

“It is difficult to imagine a worse trading environment, moreover visibility is still poor and we remain cautious.

We have not been passive. We have redesigned our organisation, substantially strengthened the senior management team and are taking out significant levels of cost. At the same time we are cutting back on capital expenditure and are progressing the sale of a number of assets. All this will stand us in good stead now and leaves us well placed to benefit from recovery.”


This operating review discusses the performance in the six months ended 31 March 2003 of the elements of Six Continents PLC that form the ongoing business of InterContinental Hotels Group PLC (IHG) following completion of the separation on 15 April 2003.


IHG Group turnover increased by 0.4% on the same period in the prior year, with Hotels turnover increasing by 7.5% in US dollar terms but declining by 2.0% to £724m in sterling terms. Total Hotels operating profit of £79m was 27.5% down on last year.

Within Soft Drinks, sales volumes and profit were both ahead of the prior year, a year in which the business saw record results.

Last updated 25 January 2008

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