By NZPA
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Tuesday 7th August 2007 |
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The $12.96 million operating profit after tax for the six months to June 30 compared with $11.35 million for the corresponding period in 2006.
Revenue from ordinary activities was down 10% to $88.32 million.
Of $25.51m operating profit before tax, compared to $22m a year earlier, New Zealand hotel operations contributed 38.3%, majority-owned subsidiary CDL Investments New Zealand 44.2% and Australian operations 17.5%.
Chairman Wong Hong Ren said the company's New Zealand hotel operations traded satisfactorily, but revenue was affected by a lack of apartment sales at the Zenith Residences in Sydney.
A better than expected performance from CDL was the most significant contributor to the results for the last six months, he said.
Total revenue from the 19 owned or leased and operated hotels, excluding 12 franchised properties, was $63.54m for the six months, slightly down from $64.91m in the year ago period.
The expiry of the Kingsgate Hotel Greenlane lease and refurbishment of Kingsgate Hotel Oriental Bay Wellington contributed to the reduction in revenue. Hotel occupancy remained static at 70.2% across the group, Wong said.
CDL Investments operating profit after tax increased 99.3% to $7.57m, with property sales revenue for the period at $19.36m, up from the $11.65m.
Millennium-Copthorne holds a 64.3% stake in CDL.
"Taking into account increasingly challenging market conditions such as static international visitor numbers and increased costs particularly with regard to payroll and energy, the group has performed satisfactorily during the past six months," Wong said.
The effect of the high New Zealand dollar was yet to be felt but was likely to have an impact in the latter part of 2007 as the company renegotiated agreements with key international suppliers.
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