MANTRA GROWS IN ALL OPERATING AREAS
Written on the 27 February 2015
MANTRA Group (ASX:MTR) has experienced period-on-period growth in each of its operating segments for the first half of the financial year, delivering a total revenue of $252.7 million.
This result is a 9.4 per cent increase on the same period last year with EBITDAI of $42.2 million, up 17.5 per cent from the first half of FY14.
Chief Executive of the accommodation operator, Bob East (pictured), says he is pleased to see the group performed strongly in all areas of revenue, profitability and cash flow.
"This result reflects improved occupancy levels and average room rates as well as a focus by management on cost control and improved efficiencies in key areas of the business," says East.
"The group is in a good financial position with total assets of $545 million, net assets of $279 million and a strong cash flow, and is well placed to deliver shareholder value in the 2015 financial year."
MTR's CBD locations delivered revenue of $136.4 million and EBITDAI of $25.1 million, a period-on-period increase of 16.2 million - $12.1 million of which was from new properties.
Resorts delivered revenue of $95.1 million, an increase of 3.6 per cent compared to the previous corresponding period.
And Central Revenue and Distribution increased 21.1 per cent in revenue to $20.1 million.
MTR says strong conference and corporate demand in Melbourne, Adelaide and Darwin and the G20 in Brisbane drove corporate demand resulting in increased occupancy levels.
Between July and December 31, Mantra Group added five hotels to its network three in Brisbane, one in Canberra and one in Sydney.
A dual branded property was added in Melbourne in January 2015. Further new properties are expected to enter the portfolio over the next 12 months with future build developments awaiting construction.
East says MTR aims to continue driving growth and delivering shareholder value for the rest of the financial year and beyond.
"We reaffirm our prospectus forecast results for FY2015. Seasonality means approximately over 60 per cent of FY EBITDAI and over 64 per cent FY15 NPATA per prospectus has been earned in the period which makes Mantra Group on target to meet its overall prospectus forecast for FY15," says East.
"Based on the group's earnings capability and strong cash flow position, the Mantra Group is well placed to take advantage of growth opportunities and deliver year-on-year shareholder value.
"We continue to strengthen our platforms and we are taking advantage of leading distribution capabilities and brand appeal. These factors are also aiding our development team as they continue to sign new properties into the portfolio."
A fully franked interim dividend of 5 cents per share is to be paid on March 31, in line with the company's prospectus.