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Mandarin Oriental's full-year profit down 38.2%
BRITISH hotel group Mandarin Oriental posted on Thursday a 38.2 per cent fall in its full-year net profit as weak demand persists in key cities.
The mainboard-listed company said in a statement that earnings were lower in 2016 due to weaker demand in Hong Kong, London and Paris. It added that its Paris operations were impacted due to ongoing travel security concerns.
Net profit for the year ended Dec 31, 2016 was US$55.2 million, compared to US$89.3 million the year before, after deducting non-trading items in each year. Earnings per share was 4.40 US cents, a fall from 7.44 US cents the previous year.
Mandarin Oriental's revenue stood at US$597.4 million, down 1.63 per cent from US$607.3 million in 2015. The company said there was softer demand, particularly in Hong Kong and Jakarta. Its operations in Hong Kong were affected by a decline in visitor arrivals to the city, as well as a softening in the corporate sector. Similarly, Jakarta had lower demand as a result of "ongoing security concerns".
It is proposing a final dividend of 2.50 US cents per share to be paid on May 11, 2017.