Consolidating our performance


IHI has released its 2018 Half-Yearly Report and the figures registered show the company’s solid financial position, along with increased revenue and EBITDA.

At an eagerly awaited presentation to Malta’s leading stockbrokers on September 5, joint CEOs Mr Simon Naudi and Mr Joseph Fenech, and Audit Committee Chairman Mr Frank Xerri de Caro, painted a vivid picture of IHI’s financial performance in the first half of 2018.  In short, revenue is up €1.6m over the corresponding period last year, (from €115,284m to €116,937m), along with an improvement in the level of EBITDA (from €27.025m to €27.610m).

IHI’s executives spoke of how the Group was continuing to consolidate its achievements over recent years – growth which has seen adjusted EBITDA increase from just over €33m in 2014, to more than €61m in 2017. At the half-year point, the forecast is that by year’s end, IHI’s adjusted EBITDA will increase yet again, to over €63m.

In an overview of IHI’s business portfolio, Simon Naudi gave a detailed insight into the context of the report, and an update of projects in development. Mr Naudi said the half-year report offered a vantage point to reflect on the ongoing efforts being made across the Group – in hotel operations, in major new developments, and through the work of all IHI’s companies, to realise the targets set at the beginning of the year and to build confidently upon past success.

“These are very positive figures that show we are in a period of consolidation but steady growth,” said the joint CEO. “They show we are building on the solid foundations laid in recent years, and all the while we are continuing a raft of truly groundbreaking projects.”

Artist’s impression of Corinthia Hotel & Residences Meydan Beach. The property will comprise 300 bedrooms and 60 high-end serviced apartments and is scheduled for completion in 2020.

“These mid-year figures are encouraging. We see increased revenue from our hotels, and  other positive indicators. Of course many things can happen between now and the end of the year, but one calculation important to highlight, is how our EBITDA is once again predicted to increase. This continuing trend comes on the back of our significant progress in EBITDA over the past five years – in fact a 90 percent growth on the Group’s EBITDA back in 2014. This has come about by acquisitions, as well as organic growth in our hotels, and it is good news that this benchmark of our performance continues to improve.”

Luxury guest room at Corinthia Hotel Lisbon, part of an ongoing €10 million refurbishment of the hotel.

“In many of our hotels, in Europe in particular, over the past five years we have almost doubled the contribution their operating profits make to IHI’s EBITDA. This is down to improved management and subsequently, improved performance.”

Alluding to IHI’s operations in Libya, Mr Naudi said Corinthia Hotel Tripoli continued to be a positive contributor to IHI’s bottom line, particularly with the signing of a lease agreement for the last commercial area of the Hotel. EBITDA from IHI’s Libyan operations are forecast to rise to approximately €4m in 2018, compared to €2m in 2017.

On corporate developments, the meeting heard that negotiations were continuing  on Corinthia Hotels Ltd taking a 10 percent shareholding in the Global Hotels Alliance, an alliance of 26 luxury hotel companies that provides technology and infrastructure for a global loyalty programme linking the 26 brands, which include Kempinski – Europe’s oldest luxury hotel group, and the US-based Omni Hotels.

Turning to IHI’s future hotel and real estate developments, Mr Naudi reported on ongoing contract negotiations in relation to a 150-room prime-site luxury hotel in Moscow. In Malta, the design of the St George’s Bay project continues, with permits and authorisations to be complete by year’s end. Other ‘pipeline’ projects being investigated include the creation of a flagship Corinthia hotel on the Cote d’Azur in France, and in New York.

Corinthia Hotel Brussels mock-up guest room. Currently under construction the hotel will feature 121 bedrooms and suites plus extensive banqueting, dining and spa facilities.

Concluding the presentation, joint CEO Mr Joseph Fenech provided detailed analysis of the Group’s Income Statement, noting the €600,000 improvement in EBITDA at the half-year point, the write-off of intangibles related to the Island Catering brand, savings in interest payments. In terms of IHI’s balance sheet, total asset value as of 30 June 2018, stood at €1,608 billon close to that of the end of year 2017 figure (€1,602 billon).

“Our Half-Yearly Report shows there is evidence for great confidence in the financial performance of IHI as we progress in 2018,” said Mr Fenech. “We continue to grow, with determination and with passion. But it is growth carefully managed, fuelled by the dexterity, commitment and skills of our colleagues – in management, and across each and every one of our operations.”


Download the 2018 Half-Yearly Report