9 things you need to know about Mantra Group Ltd

Credit: Vern

Hotel and accommodation service provider Mantra Group Ltd (ASX: MTR) has released its financial results for the half year ended December 31.

Here are the highlights…

  1. Revenue jumped 21.7% to $307 million
  2. Underlying earnings before interest, tax, depreciation, amortisation and impairment (EBITDAI) grew 26.1% to $53.2 million (growth was 11% excluding new properties)
  3. Underlying net profit after tax (NPAT) climbed 26.6% to $27.6 million
  4. Underlying NPAT but before amortisation of lease rights (NPATA) grew 25.3% to $28.9 million
  5. Underlying earnings per share leapt 18.6% to 10.3 cents per share
  6. A fully franked dividend of 5 cents per share was declared. The stock will trade ex-dividend on February 24 with payment on March 24
  7. Nine new properties were added to the portfolio over the half
  8. Average room rate increase to $171.14 per night
  9. Occupancy level increased to 79.9%

Outlook guidance

Mantra’s management provided the following update regarding its expectations for the full year which incorporates the benefits arising from new properties…

  • EBITDAI between $88.5 million and $90.5 million
  • NPAT between $41.5 million and $43 million
  • NPATA between $44.2 million and $45.7 million

Foolish takeaway

Mantra’s management noted that the group was benefiting from strong Chinese inbound trends. It’s a trend which has been acting as a tailwind for a number of tourism exposed businesses across the leisure, accommodation and entertainment sectors.

Companies to already report pleasing results this February include Sealink Travel Group Ltd (ASX: SLK) and Event Hospitality and Entertainment Ltd (ASX: EVT) which was previously known as Amalgamated Holdings Ltd.

Given the expectations for this tourism tailwind to continue, these three stocks are high on the watch lists of many savvy investors.

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Motley Fool contributor Tim McArthur has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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