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).
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.
Valuation is complex, but we're here to simplify it.
Discover if InterContinental Hotels Group might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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