Mantra Reports H2 2014 Results

Mantra Group Limited (Mantra Group) has reported that for the half year ended 31 December 2014, it delivered total revenue of $252.7 million a 9.4% increase on H1 FY2014.

The group currently has total assets of $545 million, net assets of $279 million and a strong cash flow.

Mantra achieved period-on-period growth in each of its operating segments:

· CBD delivered revenue of $136.4 million and EBITDAI of $25.1 million representing a period-on-period increase in revenue of $16.2m, $12.1m of which was from new properties. Among other factors, strong conference and corporate demand in Melbourne, Adelaide and Darwin and the G20 in Brisbane drove corporate demand resulting in increased occupancy levels.

· Resorts delivered revenue of $95.1 million and EBITDAI of $15.0 million representing increases on H1FY2014 of 3.6% and 4.9% respectively. This sector benefitted from growth in both domestic and international visitors, with occupancy increasing by 5.4% period on period.

· Central Revenue and Distribution (CRD) delivered revenue of $20.1 million and EBITDAI of $15.8 million representing increases on H1FY2014 of 21.1% and 20.6% respectively. Fees from new properties under management coupled with an increase in online booking volumes through centralised channels contributed to this solid performance.

As indicated at the time of its IPO, the Board has approved payment of a fully franked dividend of 5 cents per share for the period to 31 December 2014. Dividends will be paid on 31 March 2015.

Hotels

Between July and December 2014 Mantra Group added five new hotels to its network – three in Brisbane; one in Canberra and one in Sydney. A dual branded property was added in Melbourne in January 2015.

The property pipeline is strong with two Tasmanian properties and one Christchurch property scheduled to join the group in April 2015. Further new properties are expected to enter the portfolio over the next twelve months with future new build developments awaiting construction.

Strategy and FY2015 Outlook

“We reaffirm our prospectus forecast results for FY2015. Seasonality means approximately over 60% of FY15 EBITDAI and over 64% FY15 NPATA per prospectus has been earned in the period which makes Mantra Group on target to meet its overall prospectus forecast for FY15,” said Mantra Group Chief Executive Officer, Bob East. “Based on the Group’s earning capability and strong cash flow position, Mr East said that the Mantra Group is well placed to take advantage of growth opportunities and deliver year-on-year shareholder value. We continue to strengthen our platforms and we are taking advantage of leading distribution capabilities and brand appeal. These factors are also aiding our development team as they continue to sign new properties into the portfolio.”