InterContinental Hotels Group Full Year 2024 Earnings: EPS Misses Expectations

Simply Wall St

February 20, 2025

InterContinental Hotels Group (LON:IHG) Full Year 2024 Results

Key Financial Results

Revenue: US$4.92b (up 32% from FY 2023).
Net income: US$628.0m (down 16% from FY 2023).
Profit margin: 13% (down from 20% in FY 2023). The decrease in margin was driven by higher expenses.
EPS: US$3.90 (down from US$4.44 in FY 2023).

revenue-and-expenses-breakdown — LSE:IHG Revenue and Expenses Breakdown February 20th 2025

All figures shown in the chart above are for the trailing 12 month (TTM) period

InterContinental Hotels Group EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 13%.

The primary driver behind last 12 months revenue was the Unallocated System Fund segment contributing a total revenue of US$1.61b (33% of total revenue). Notably, cost of sales worth US$3.44b amounted to 70% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling US$403.0m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how IHG's revenue and expenses shape its earnings.

Looking ahead, revenue is expected to decline by 14% p.a. on average during the next 3 years, while revenues in the Hospitality industry in the United Kingdom are expected to grow by 5.8%.

Performance of the British Hospitality industry.

The company's shares are down 6.4% from a week ago.

Valuation

Our analysis of these results suggests InterContinental Hotels Group may be overvalued based on 6 important criteria we look at. To explore our complete evaluation click here and get an understanding of what analysts are thinking about the company's future.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.