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M&C's Q3 net profit slips 33% to £24m
MILLENNIUM & Copthorne Hotels (M&C), the London-listed hotel arm of City Developments, has posted a 33.3 per cent drop in group net profit for the third quarter ended Sept 30, 2015, to £24 million (S$51.4 million) from net earnings of £36 million in the same quarter of last year.
Revenue fell to £211 million from £217 million.
Earnings per share slipped to 7.3 pence from 10.9 pence.
M&C chairman Kwek Leng Beng commented: "Revenue and profit were lower in the third quarter because of weaker performance by our hotels in Singapore and rest of Asia. The Singapore market is unlikely to stabilise until the end of 2017 as hotel room inventory continues to grow.
"In Taipei, visa restrictions continue to inhibit the growth of mainland Chinese visitor numbers. Millennium Seoul Hilton is still recovering from lower visitor numbers after the outbreak of Middle East Respiratory Syndrome in May. These factors, together with slower economic growth in China and higher operating costs, will continue to put pressure on revenue and profit in Asia."
Elsewhere, added Mr Kwek, trading conditions were more benign "although we remain cautious about the outlook in New York and London".