REVENUE BY ACTIVITY
|PROFIT BEFORE INCOME TAX (*)
* Includes share of after-tax profit of an associate and jointly-controlled entities.
|| Property Development
Revenue increased to $485 million (2005: $365 million)
and pre-tax profit increased by $75 million to $226 million
(2005: $151 million).
The increase in revenue is mainly attributable to contributions
from City Square Residences, Residences @ Evelyn, The
Imperial and sale of apartments in Sydney. In accordance to
the Groupís policy of equity accounting for the results of its
jointly-controlled entities, whilst revenue from The Sail @ Marina
Bay, Parc Emily, St. Regis Residences and Edelweiss Park
has not been consolidated into the Groupís total revenue, the
Groupís share of profits arising from these joint venture developments
has been included in pre-tax profit.
The increase in pre-tax profit, which is in-line with the
improvement in revenue, is also due to profit recognised for
St. Regis Residences as well as higher contributions from The
Sail @ Marina Bay and Parc Emily and higher write-back of
allowance for foreseeable losses on unsold units. Profit for
2005 included the gain on sale of Bayswater Tower, Kingsgate
Shopping Centre and Kingsgate Commercial Centre in Sydney
recognised in 2005.
Revenue improved by $44 million (or 2.4%) to $1,847
million (2005: $1,803 million). The increase in revenue is
mainly due to improvement in the Groupís RevPAR which increased
by 8.1% during the year, with particularly strong performances
in the United States and Asia.
Pre-tax profit soared to $397 million (2005: $213
million). The increase in pre-tax profit resulted from improvement
in RevPAR, the gain of $150.9 million recognised on sale
of the 75-year lease each in Grand Copthorne Waterfront
Hotel, Orchard Hotel (including Orchard Hotel Shopping
Arcade) and M Hotel, and the remaining 61 years of 99-year
leasehold interest in Copthorne Kingís Hotel to CDL Hospitality
Trusts in 2006 and the receipt of business interruption
insurance proceeds from insurance broker of $15.9 million in
respect of the Millenium Hilton New York. This increase would
have been higher if not for the profit of £12.8 million (approximately
$39.8 million) from the settlement of Millenium
Hilton insurance dispute in 2005.
Revenue increased by $8 million to $168 million (2005:
$160 million) mainly due to higher carpark income generated
and improved average occupancy.
In line with the improvement in revenue, pre-tax profit
increased to $30 million (2005: $28 million). CDL Hospitality
Trusts, in which the Companyís 53% subsidiary, Millennium
& Copthorne Hotels plc, has a 39% interest, has also contributed
additional profit to this segment. The increase would be
higher if not for the recognition of gain from the disposal of
MyeongDong Central Building in Seoul, held by a jointly-controlled
entity in which the Group has a 50% interest and
disposal of units in Tanglin Shopping Centre in 2005.
Revenue, comprising mainly income from hotel management,
building maintenance contracts, project management,
club operations and dividend income, has improved to $47
million (2005: $46 million).
Pre-tax profit for this segment increased by $27 million to
$39 million (2005: $12 million). The increase resulted from
higher unrealised gain on equities held for trading, exchange
gain on foreign currency denominated deposits and securities
and higher management fee income.