CDL's profit plunged 99.1% to $3.15m in H1

Hotel operations accounted for 82% of the drop in revenue.

City Developments Limited (CDL) saw its profit attributable to shareholders plummet 99.1% YoY in H1 to $3.15m from $361.96m in H1 2019, a local bourse filing stated. The prolonged COVID-19 pandemic has severely impacted the group’s performance across its business segments.

Revenue for H1 similarly crashed 32.8% YoY to $1.1b from $1.6b over the same period, no thanks to the decline across all business segments with hotel operations accounting for 82% of the drop in revenue. In constant currency, the group’s global hotel revenue per available room (RevPAR) fell by 56.6% to $60.3 from $139.1m in H1 2019. Its global occupancy also dropped to 39.4% from 72.2% over the same period.

As at 30 June, 28% of the group’s 152 hotels worldwide were temporarily closed and those that remained open were operating at much lower occupancies than before.

The group also registered a pre-tax profit of $13.8m for H1, plunging from $490.3m in H1 2019, no thanks to lower divestment gains. Its hotel operations segment recorded a substantial pre-tax loss of $208.2m, which included $33.9m of impairment losses made in view of the current pandemic.

CDL’s cash reserves are at $2.7b, whilst cash and available undrawn committed bank facilities totaled $4b. Net gearing ratio stands at 50%.

The company declared a tax-exempt (one-tier) non-cumulative preference dividend to holders of 1.94 cents per preference share, calculated at the dividend rate of 3.9% per annum of the issued price of $1 for each preference share. The said preference dividend was paid on 30 June.