Hotel and accommodation service provider Mantra Group Ltd (ASX: MTR) has released its financial results for the half year ended December 31.
Here are the highlights…
- Revenue jumped 21.7% to $307 million
- Underlying earnings before interest, tax, depreciation, amortisation and impairment (EBITDAI) grew 26.1% to $53.2 million (growth was 11% excluding new properties)
- Underlying net profit after tax (NPAT) climbed 26.6% to $27.6 million
- Underlying NPAT but before amortisation of lease rights (NPATA) grew 25.3% to $28.9 million
- Underlying earnings per share leapt 18.6% to 10.3 cents per share
- A fully franked dividend of 5 cents per share was declared. The stock will trade ex-dividend on February 24 with payment on March 24
- Nine new properties were added to the portfolio over the half
- Average room rate increase to $171.14 per night
- Occupancy level increased to 79.9%
Outlook guidance
Mantra's management provided the following update regarding its expectations for the full year which incorporates the benefits arising from new properties…
- EBITDAI between $88.5 million and $90.5 million
- NPAT between $41.5 million and $43 million
- NPATA between $44.2 million and $45.7 million
Foolish takeaway
Mantra's management noted that the group was benefiting from strong Chinese inbound trends. It's a trend which has been acting as a tailwind for a number of tourism exposed businesses across the leisure, accommodation and entertainment sectors.
Companies to already report pleasing results this February include Sealink Travel Group Ltd (ASX: SLK) and Event Hospitality and Entertainment Ltd (ASX: EVT) which was previously known as Amalgamated Holdings Ltd.
Given the expectations for this tourism tailwind to continue, these three stocks are high on the watch lists of many savvy investors.
