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Mantra Group’s solid first half results

Bob East Mantra Group staircase - EDITED

Mantra Group has announced its half year results for the period ended 31 December 2016, reporting underlying Net Profit After Tax (NPAT) of AUD$31.8 million, up $4.2 million and 15.1% on H1FY2016 and underlying EBITDAI of $58.7 million, up 10.3%.

Mantra Group Chief Executive Officer Bob East said H1FY2017 delivered another strong performance with continued growth in revenue and profitability.

“During H1FY2017, the Group performed ahead of the previous corresponding period in revenue, underlying EBITDAI, NPAT and NPATA and is on track to deliver earnings in line with guidance given in August 2016,” he said.

“The Group delivered total revenue of $356.2 million, representing a 15.9% increase on H1FY2016.

“This improvement was driven by four new properties acquired during the six month period and was supported by organic growth as a result of the continued growth in domestic and international travel, an increase in the total number of rooms available across both the Resorts and CBD operating segments, improved occupancy levels, higher average room rates in Resorts and improved efficiencies in key areas of the business.

“We are thrilled with the performance of the properties we transitioned into the portfolio during the period, in particular the 1,176 room Mantra-branded Ala Moana Hotel in Honolulu Hawaii which has recorded solid opening results to perform above expectations and contributed $27.2 million in revenue since joining the Group on 26 July 2016.

“The Group is in a good financial position with total assets of $829 million, net assets of $482 million and a strong cash flow,” he said.

During the six months ended 31 December 2016, Mantra Group added four new properties to its network – three in the Resorts segment – Ala Moana Hotel in Honolulu Hawaii, Mantra Residences at Southport Central on the Gold Coast and Mantra The Observatory at Port Macquarie – and Peppers Kings Square Hotel, Perth (a management agreement property) joined the Group’s Central Revenue and Distribution segment.

Development pipeline remains strong for the Group with Mantra Club Croc, Airlie Beach and TRIBE West Perth due to open in H2FY2017.

The Group’s new-build Mantra hotel at Sydney Airport is scheduled to join the Group in July 2017, with Mantra Macarthur Hotel, Canberra and the first two (of three) towers of Brisbane’s luxurious FV by Peppers due to open in August 2017 (subject to customary settlement conditions).

East said Mantra Group will continue to surge ahead with H2FY2017 set to see ongoing portfolio growth, characterised by further acquisitions in key Australian and international destinations.

“Announcements have already been made regarding the Group’s operation of new hotels being constructed in Melbourne, Perth, Queenstown, Albury and Wallaroo Shores, with further new projects to be announced,” he said.

“The Group’s balance sheet and cash flow remain strong placing the business in a good position to capitalise on new opportunities as they arise.”

East said Mantra Group is committed to driving growth and delivering shareholder value in FY2017 and beyond.

“We are delighted to reaffirm the market guidance given in August 2016[4] for FY2017, of EBITDAI between $101.0 and $107.0 million, NPAT between $48.5 and $52.5 million and NPATA between $51.0 and $55.5m million,” he said.

“Based on the Group’s earning capability and strong cash flow position, we are well placed to continue to take advantage of growth opportunities in our ongoing commitment to deliver shareholder value through pipeline growth and development opportunities, delivering quality room inventory and facilities, optimising distribution channels, brand appeal and capitalising on the forecasted growth in the tourism sector driven by increases in international visitors, primarily out of Asia.

“The second half of the financial year is off to a solid start with early H2FY2017 showing great momentum. I am also pleased to welcome Stephen Hobson, Mantra’s new CFO who joined the Group on 15 February 2017,” East said.


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