Millennium & Copthorne Hotels New Zealand (MCK) H1 2025 earnings summary

Executive summary

• Strategic execution and the Revive and Thrive strategy supported resilience amid economic headwinds, focusing on long-term property improvement and tourism sector recovery.

• Returned to profitability with net profit of $8.5m for the six months ended 30 June 2025, compared to a $10.2m loss in the same period last year.

• Revenue declined 7.1% year-over-year to $79.3m, mainly due to lower residential land development sales.

• Basic and diluted EPS improved to 4.20c from -7.42c year-over-year; excluding a one-off deferred tax adjustment, EPS was 7.94c.

Financial highlights

• Total revenue for HY25 was $79.3m, down 7.1% from $85.3m in HY24; NZ hotel revenue rose to $64.1m.

• Profit before tax fell 47.3% year-over-year to $11.3m; operating profit decreased 39.6% to $12.0m.

• Gross profit fell to $42.7m from $46.8m year-over-year, with gross margin at 53.8%.

• Book value increased to $787.3m from $762.3m at FY24.

• Total comprehensive income for the period was $6.2m, up from a loss of $9.3m year-over-year.

Outlook and guidance

• Economic recovery is expected to drive demand, though timing and pace remain uncertain; regional demand varies.

• Priorities include increasing room capacity, ongoing refurbishments, and optimising residential section sales.

• Continued investment in upgrades and loyalty program growth are planned.

• No explicit forward guidance provided, but focus remains on hotel operations and property development.