A widely-touted bumper year for Hongkong and Shanghai Hotels (HKSH) failed to materialise, as weaker than expected tourism arrivals before the handover and a lack of extraordinary gains led to a 5 per cent fall in attributable profit to $412 million in the first half to June.
Finance director Douglas Webster said slow growth in inbound tourists and the closure of some outlets in the shopping arcade at its Kowloon Hotel would affect second-half growth.
An international brokerage analyst said he would reduce HKSH's profit forecast from $1.1 billion to about $950 million for the year to December.
Turnover for the first half rose 13 per cent to $1.43 billion, and operating profit was up 5 per cent to $550 million.
The fall in attributable profit reflected a lack of extraordinary gains in the first half. The previous year's figure included a $55 million extraordinary profit earned on the sale of its 25 per cent stake in Cathay Pacific Catering Services (HK) in 1996.
Growth in profit before extraordinaries was 8 per cent. Earnings per share were unchanged at 35 cents and a steady interim dividend of 15 cents was recommended.