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Weaker demand in Hong Kong, Paris dent Mandarin Oriental earnings
SOFTER demand in Hong Kong and Paris put a dent in the earnings of hotelier Mandarin Oriental, part of the Jardine group.
Mandarin Oriental's full-year net profit for 2015 slid 8 per cent from the previous year to US$89.3 million, the company said in a Singapore Exchange filing on Thursday.
Revenue for the 12 months ended Dec 31 declined to US$607.3 million, nearly 11 per cent lower than the US$679.9 million the year before.
The group said the contribution from Asia had fallen due to "softer demand in Hong Kong and Singapore, together with disruption from a renovation in Kuala Lumpur". Its showing in Europe was "affected by challenging conditions in Paris following the terrorist attacks and by the adverse impact of a renovation in Munich, which were only partially offset by improved results in London", it added.
Earnings per share for 2015 came in at 7.44 US cents, down from 9.29 US cents for 2014. Net asset value per share was US$0.98 as at Dec 31, 2015, slightly higher than the US$0.92 as at Dec 31, 2014.
The company, which has a secondary listing on the Singapore mainboard, proposed a final dividend of three US cents per share. This and the interim dividend of two US cents per share add up to a total annual dividend of five US cents per share, reduced from seven US cents per share in 2014.
Mandarin Oriental shares dipped half a cent to close at US$1.300 on Thursday before it announced the results.