1 / 52

2005 Interim Results 25 August 2005

2005 Interim Results 25 August 2005. Brian Wallace Deputy Group Chief Executive and Finance Director. Summary of Performance. Variance B(W). 2005 £m. 2004 £m. Half year to 30 June. Hotels 72.6 65.6 10.7% Betting 143.6 153.3 (6.3)% Central costs and income (8.9) (6.5) (36.9)%

papina
Download Presentation

2005 Interim Results 25 August 2005

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 2005 Interim Results25 August 2005

  2. Brian WallaceDeputy Group Chief Executive andFinance Director

  3. Summary of Performance Variance B(W) 2005 £m 2004 £m Half year to 30 June Hotels 72.6 65.6 10.7% Betting 143.6 153.3 (6.3)% Central costs and income (8.9) (6.5) (36.9)% Operating profit (1) 207.3 212.4 (2.4)% Finance costs (15.2) (21.1) 28.0% Profit before tax (1) 192.1 191.3 0.4% Effective tax rate (1) 20.0% 15.5% EBITDA (1) 275.3 278.4(1.1)% EPS (1) 9.6p 10.2p (5.9)% (1)Before non-trading items

  4. Hotels - Like for Like Profit Variance B(W) 2005 £m 2004 £m Half year to 30 June Reported profit (1) 72.6 65.6 10.7% Closed for refurbishment2.5 0.6 Disposals / new openings (1.9) (2.0) St Lucia termination receipt (2.3) - Foreign exchange(0.5) - Like for like hotels profit (1) 70.4 64.2 9.7% (1)Before non-trading items

  5. Hotels Worldwide Revpar 2005 vs 2004 Like for Like Hotels, Constant Currencies March and April results have been combined due to the timing of Easter.

  6. Worldwide Revpar by Ownership Type Like for Like Hotels, Constant Currencies Revpar growth 2005 vs 2004 - First half +4.7% +10.8% +8.4% 2004 2005 2004 2005 2004 2005

  7. Hotels - Cost Management Like for Like Hotels, Constant Currencies Increasing revenue £m Declining revenue £m Half year to 30 June LivingWell £m Total £m Revenue movement 75.2 100.5 (26.2) 1.0 GOP movement (1) 36.7 58.3 (18.4) 0.1 Incremental conversion 48.7% 58.0% 29.6% Rental & Owners return (25.2) Property taxes / rates (1.7) Other (3.6) Operating profit increase (1) 6.2 (1)Before non-trading items

  8. UK Hotels Profitability Variance B(W) 2005 £m 2004 £m Half year to 30 June Reported profit (1) 30.6 38.7 (8.1) Disposals (2.2) Increased depreciation charge (1.0) Newcastle compensation (1.1) 5 major hotels decline (4.9) 65 other hotels increase 1.1 Decline in UK Hotels profit (8.1) Analysis of decline (1)Excludes Tindall associate result

  9. Europe (Hilton brand) - Revpar By Country Like for Like Hotels, Constant Currencies, First Half +7.1% +8.6% +2.3% 2004 2005 2004 2005 2004 2005

  10. Scandic Revpar 2005 vs 2004 Like for Like Hotels, Constant Currencies, Scandic Acquired Revpar growth 2005 vs 2004 - First half March and April results have been combined due to the timing of Easter.

  11. Scandic Performance 2005 vs 2004 Like for like revenue gainers (a) £m Like for like revenue losers (a) £m 2004 Actual £m 2005 Actual £m Other (b) £m Exchange £m Revenue 241.1 18.5 (3.1) (5.1) 5.8 257.2 GOP 76.2 10.9 (2.6) (2.5) 1.9 83.9 Inc. conversion 58.9% 16.1% Costs (73.3) (1.8) 0.4 1.4 (1.6) (74.9) Profit 2.9 9.1 (2.2) (1.1) 0.3 9.0 (a) At constant currencies. (b) Includes openings, closing and refurbishments.

  12. Betting & Gaming Operating Profit (1) 2005 2004 £m £m Gross Win 2005 2004 £m £m Half year to 30 June UK Retail 342.1 338.0 108.8 119.2 Ireland & Belgium 35.6 35.9 5.7 7.0 Telephone Betting 21.6 25.9 8.5 11.8 eGaming 58.0 44.7 17.5 12.1 Vernons 9.9 10.6 3.1 3.2 Betting & Gaming 467.2 455.1 143.6 153.3 (1)Before non-trading items

  13. UK Retail Variance B(W) 2005 £m 2004 £m Half year to 30 June Over-the-counter (1) 242.5 254.2 (4.6)% Machines* 99.6 83.8 18.9% Total Gross Win 342.1 338.0 1.2% *Gross Win on Machines FOBT 90.7 71.0 27.7% AWP8.9 12.8 (30.5)% (1)Underlying GW after adjusting for major sporting events – Euro 2004, Ascot, Aintree and Cheltenham – fell by 0.3% from 2004

  14. UK Retail – Underlying Cost Growth Variance B(W) 2005 £m 2004 £m Half year to 30 June Underlying overheads 168.1 162.6 3.4% 12.0 6.0 Growth in retail estate 2.6 Opening hours increase 182.7 168.6 8.4% Total UK Retail costs

  15. Telephone Betting (including high rollers) Variance B(W) 2005 £m 2004 £m Half year to 30 June Gross win 21.6 25.9 (16.6)% Gross profits tax (3.3) (3.8) 13.2% Other costs (9.8) (10.3) 4.9% Operating profit8.5 11.8 (28.0)% Average stake per call £90.98 £79.77 14.1% Salary cost per call 65.2p 70.0p 6.9% No. of calls (000’s) 3,751 3,334 12.5% Active customers (000’s) (1) 103.4 102.2 1.2% (1)Active customers are those who placed a bet during the period

  16. eGaming Variance B(W) 2005 £m 2004 £m Half year to 30 June Gross win 58.0 44.7 29.8% Gross profits tax (3.2) (2.7) (18.5)% Other costs (37.3) (29.9) (24.7)% Operating profit17.5 12.1 44.6% Active customers (000’s) (1) Sportsbook 228 231 (1.3)% Casino 46 66 (30.3)% Poker 93 33 181.8% Online registrations (000’s)195 213 (8.5)% (1)Active customers are those who placed a bet during the period

  17. Hilton Group plc - Cash Flow 2005 £m 2004 £m Half year to 30 June Cash generated by operations 239.2 258.1 Interest, tax and dividends paid (128.1) (126.6) Cash flow before capex 111.1 131.5 Capital expenditure (82.6) (85.4) Cash flow after capex 28.5 46.1 Intangible additions (1) (40.4) (19.5) Acquisitions / hotel disposals (2) 100.9 15.0 Exchange and other movements (3) 66.5 80.0 Net borrowings movement 155.5 121.6 Opening net borrowings (971.9) (1,147.7) Closing net borrowings (816.4) (1,026.1) • Includes £37.1m licence additions and £2.5m software additions (2004: £19.5m) • Includes £103.5m on hotel disposals in 2005 (2004: £15.0m) • (3) Includes £38.7m favourable exchange (2004: £74.7m favourable) and £30.3m inflow from share capital issue (2004: £3.6m)

  18. Analysis of 2005 Capital Expenditure Half year to 30 June £m Hotels Acquisition linked development: Sydney (refurb) 13.2 Dusseldorf (refurb) 1.4 14.6 Other 43.7 Total Hotels 58.3 LivingWell 0.3 58.6 Betting & Gaming Development – operating assets 15.2 Ladbrokes Xtra 0.7 Other (including Ireland £1.9m) 7.4 eGaming / Telephone betting 0.7 24.0 Total Group 82.6

  19. David MichelsGroup Chief Executive

  20. 2005 – First Half Trading

  21. Retail Estate

  22. Ladbrokes Costs Like for Like UK Retail 3.4% Total UK Retail 8.4% Worldwide Betting 9.2%

  23. eGaming

  24. eGaming

  25. Telephone Betting

  26. International Partners • Sweden • Denmark • Finland • Norway • Greece • Turkey • Spain • Thailand • Malaysia • Singapore • Ghana • Tanzania • Swaziland • Malawi

  27. Casinos

  28. Franchising Scandic by Hilton, Syracuse

  29. Management Contracts Barbados Dubrovnik, Croatia Mount Wolseley, Ireland

  30. Hilton International Hilton International Europe and Africa Middle East and Asia Pacific UK and Ireland Sourcing and Productivity Commercial Operations Group Nordic Americas Sales Marketing Distribution IT

  31. BDRC Measure UK* Europe* Asia Pacific** Middle East** Rank Rank Rank Rank • Brand Preference • 1st Choice • 1st or 2nd Choice 1st 1st 3rd 1st 1st 1st 2nd 1st Brand Ranking Index 1st 1st 2nd 1st *BDRC Survey 2005 **BDRC Survey 2004

  32. GSTS • Worldwide GSTS figures show an overall satisfaction score of 77% at June 2005, 4% up on December 2004 • MEAP and UK have shown increases of 5 percentage points and 3 percentage points respectively during the first half

  33. Sydney Hilton, Australia

  34. Sale of Assets Brighton West Pier Dunblane Corby Norwich

  35. Pipeline Growth Hotels Opened - 2005 Hotels Opening - 2006 • Bari, Italy (Scandic by Hilton) • Dubrovnik, Croatia • Mount Wolseley, Ireland • Cebu, Philippines • Barbados, Caribbean • Syracuse, Italy (Scandic by Hilton) • Dublin Airport, Ireland • Tokyo, Japan (Conrad) • Sydney, Australia • Barcelona Diagonal Mar, Spain • Santo Domingo, Dominican Republic • Phuket, Thailand (Conrad) • Millennium Hilton Bangkok, Thailand • Portorosa, Sicily • Denarau, Fiji • Sanya Resort and Spa, China • London Canary Wharf, UK • Manchester Deansgate, UK • Warsaw, Poland • Sharm Nabq, Egypt • Valencia, Spain • Jumeirah Beach Club, Dubai • Evian, France • Beirut, Lebanon • London Tower Bridge, UK Hotels Opening - 2005 • Alborea, Italy • Calane, Italy • Il Valentino, Italy • Kalidria, Italy • Qasr al Shaq, Saudi Arabia

  36. Capex. Forecast 2006 £m Forecast 2005 £m Hotels 135 140 Betting 80 80 Major property purchase 30 - Capital Expenditure 245 220

  37. Scandic

  38. Hotel Costs

  39. Current Trading

  40. Appendix

  41. Hotels - Analysis by Contract Type Fixed Lease Contingent Lease Owned Total Half year to 30 June Managed Franchise LivingWell No. of hotels 54 47 154 109 38 n/a 402 No. of rooms 14,650 9,905 34,198 34,478 9,672 n/a 102,903 £m Revenue 263.1 138.2 430.6 520.6 2.4 26.8 1,381.7 Gross operating profit 79.1 49.3 141.8 194.2 2.4 9.0 475.8 Less: Rental/owners return (4.0) (33.6) (93.1) (142.4) - (2.3) (275.4) Depreciation (21.8) (9.9) (14.7) - - (2.5) (48.9) Other costs/income (12.0) (3.0) (18.0) (32.8) (0.7) (2.3) (68.8) 2005 Profit 41.3 2.8 16.0 19.0 1.7 1.9 82.7 2004 Profit 44.3 0.7 11.2 15.8 1.0 2.7 75.7

  42. Geographical Revpar by Ownership Type Like for Like Hotels, Constant Currencies – First half Owned & Fixed Lease Contingent Lease Managed UK 0.8% 3.4% 5.9% Europe & Africa 7.8% 9.6% 7.0% Middle East & Asia Pacific 0.0% 7.5% 11.9% Americas 6.5% 19.6% 18.3% Total 4.7% 8.4% 10.8%

  43. Yield Premium - Hilton vs London Market Cumulative Year to Date Revpar Premium Market Source: PKF Hotel Consultancy Services Market is 8 competitor chains - Marriott International, InterContinental, De Vere, Millennium & Copthorne, Thistle, Le Meridien, Whitbread, Sheraton

  44. Yield Premium - Hilton vs UK Provincial Mkt Cumulative Year to Date Revpar Premium Market Source: PKF Hotel Consultancy Services Market is 8 competitor chains - Marriott International, InterContinental, De Vere, Millennium & Copthorne, Thistle, Le Meridien, Whitbread, Sheraton

  45. Betting & Gaming - Revenue 2005 £m 2004 £m Variance B(W) Half year to 30 June UK Retail (1) 4,750.9 4,065.1 16.9% Ireland & Belgium 180.4 160.9 12.1% Telephone Betting 341.4 266.0 28.3% eGaming 424.6 281.9 50.6% Vernons 14.5 15.2 (4.6)% Betting & Gaming5,711.8 4,789.119.3% (1)Includes FOBT revenue, year on year increase in machines revenue £643.4m

  46. Breakdown of Lease Commitments Forecast land and buildings full year lease commitments for 2005 Contingent Lease £m Total £m Minimum Guarantee £m Fixed Lease £m • Hotels 70.5 80.8 127.4 278.7 • Betting 40.2 - - 40.2 • Total 110.7 80.8 127.4 318.9 • Also circa £16m other operating lease commitments Forecast contingent commitments are based on 2005 forecast results

More Related