Brian Wallace Group Finance Director and Deputy Chief Executive.
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Brian WallaceBrian WallaceGroup Finance DirectorGroup Finance Director
and Deputy Chief Executiveand Deputy Chief Executive
Brian WallaceBrian WallaceGroup Finance DirectorGroup Finance Director
and Deputy Chief Executiveand Deputy Chief Executive
Hotels 97.8 126.3 (22.6)%
Worldwide Betting 76.5 62.6 22.2%
Disposal businesses - 1.2
Central costs and income (6.6) (6.2)
Operating profit (2) 167.7 183.9 (8.8)%
Interest (37.7) (39.6) 4.8%
Profit before tax (2) 130.0 144.3 (9.9)%
Effective tax rate (2) 22.0% 21.1%
EBITDA (2) 237.7 239.3 (0.7)%
Hotels 97.8 126.3 (22.6)%
Worldwide Betting 76.5 62.6 22.2%
Disposal businesses - 1.2
Central costs and income (6.6) (6.2)
Operating profit (2) 167.7 183.9 (8.8)%
Interest (37.7) (39.6) 4.8%
Profit before tax (2) 130.0 144.3 (9.9)%
Effective tax rate (2) 22.0% 21.1%
EBITDA (2) 237.7 239.3 (0.7)%
6 months to30 June 2002
£m
6 months to30 June 2002
£m
6 months to30 June 2001(1)
£m
6 months to30 June 2001(1)
£m
Hilton Group plc Hilton Group plc - - Summary of PerformanceSummary of PerformanceHilton Group plc Hilton Group plc - - Summary of PerformanceSummary of Performance
VarianceB(W)
VarianceB(W)
(1)(1) Restated for the impact of FRS 19 Restated for the impact of FRS 19(2)(2) Before goodwill amortisation and exceptional items Before goodwill amortisation and exceptional items
Reported profit 97.8 126.3 (22.6)%
Scandic profit (16.6) (2.7)
Comparable profit 81.2 123.6 (34.3)%
Royal Bank of Scotland rent 9.5 6.7
Disposals / new openings (1.0) (2.7)
Foreign exchange (0.6) -
Like for like profit 89.1 127.6 (30.2)%
Reported profit 97.8 126.3 (22.6)%
Scandic profit (16.6) (2.7)
Comparable profit 81.2 123.6 (34.3)%
Royal Bank of Scotland rent 9.5 6.7
Disposals / new openings (1.0) (2.7)
Foreign exchange (0.6) -
Like for like profit 89.1 127.6 (30.2)%
2002£m
2002£m
Hotels - Like for Like Profit Hotels - Like for Like Profit (1)(1)Hotels - Like for Like Profit Hotels - Like for Like Profit (1)(1)
%change
%change
2001£m
2001£m
(1) Before goodwill amortisation and exceptional items(1) Before goodwill amortisation and exceptional items
Like for Like Hotels, Constant CurrenciesLike for Like Hotels, Constant Currencies5%5%
0%0%
(5)%(5)%
(10)%(10)%
Occ % growthOcc % growth Rate growthRate growth RevPAR growthRevPAR growth
Including ScandicIncluding ScandicMarch / April have been combined to avoid the distortion caused by the timing of EasterMarch / April have been combined to avoid the distortion caused by the timing of Easter
Hotels Worldwide Occupancy,Hotels Worldwide Occupancy,Rate and RevPAR Performance vs 2001Rate and RevPAR Performance vs 2001Hotels Worldwide Occupancy,Hotels Worldwide Occupancy,Rate and RevPAR Performance vs 2001Rate and RevPAR Performance vs 2001
JanJan FebFeb Mar / AprMar / Apr MayMay JuneJune JulyJuly
1.1%1.1%
(7.5)%(7.5)%
(4.3)%(4.3)%
(5.5)%(5.5)% (5.6)%(5.6)%
(4.3)%(4.3)%
Hotels Worldwide RevPAR by Ownership TypeHotels Worldwide RevPAR by Ownership TypeHotels Worldwide RevPAR by Ownership TypeHotels Worldwide RevPAR by Ownership Type
Like for Like, Constant CurrenciesLike for Like, Constant Currencies
0%0%
(2)%(2)%
(6)%(6)%
(10)%(10)%
(12)%(12)%
First half RevPAR growth 2002 vs 2001First half RevPAR growth 2002 vs 2001
(10.0)%(10.0)%
(4)%(4)%
(8)%(8)%(8.3)%(8.3)% (8.2)%(8.2)%
(0.8)%(0.8)% First half RevPAR growth First half RevPAR growth
2002 vs 2001 split by owned 2002 vs 2001 split by owned properties, fixed lease, properties, fixed lease, contingent leasecontingent leaseand management contractand management contract
Includes Scandic inIncludes Scandic in2001 although it was2001 although it wasonly consolidated fromonly consolidated from1111thth June 2001 June 2001
First half RevPAR growth First half RevPAR growth 2002 vs 2001 split by owned 2002 vs 2001 split by owned properties, fixed lease, properties, fixed lease, contingent leasecontingent leaseand management contractand management contract
Includes Scandic inIncludes Scandic in2001 although it was2001 although it wasonly consolidated fromonly consolidated from1111thth June 2001 June 2001
Fixed leaseFixed lease OwnedOwned Contingent leaseContingent lease ManagedManaged
Revenue decreaseRevenue decrease (61.1)(61.1)
GOP decrease GOP decrease (1)(1) (36.3)(36.3)
Revenue decreaseRevenue decrease (61.1)(61.1)
GOP decrease GOP decrease (1)(1) (36.3)(36.3)
Hotels - Cost ManagementHotels - Cost ManagementHotels - Cost ManagementHotels - Cost Management
Like for LikeLike for Like
(1) Before exceptional items and goodwill amortisation(1) Before exceptional items and goodwill amortisationExcludes ScandicExcludes Scandic
£m£m
Incremental conversionIncremental conversion 40.6%40.6%Incremental conversionIncremental conversion 40.6%40.6%
Rental and owners returnRental and owners return 2.62.6
RatesRates (2.4)(2.4)
Insurance and otherInsurance and other (1.8)(1.8)
Foreign exchangeForeign exchange (0.6)(0.6)
(2.2)(2.2)
Rental and owners returnRental and owners return 2.62.6
RatesRates (2.4)(2.4)
Insurance and otherInsurance and other (1.8)(1.8)
Foreign exchangeForeign exchange (0.6)(0.6)
(2.2)(2.2)
Operating profitOperating profitdecrease decrease (1)(1) (38.5)(38.5)Operating profitOperating profitdecrease decrease (1)(1) (38.5)(38.5)
UK Hotels RevPAR Performance vs 2001UK Hotels RevPAR Performance vs 2001UK Hotels RevPAR Performance vs 2001UK Hotels RevPAR Performance vs 2001
Like for Like HotelsLike for Like Hotels5%5%
0%0%
(5)%(5)%
(15)%(15)%
(20)%(20)%JanJan FebFeb Mar / AprMar / Apr MayMay JuneJune JulyJuly
ProvincesProvinces
(10)%(10)%
London 5 starLondon 5 star London 4 starLondon 4 star Total UKTotal UK
March / April have been combined to avoid the distortion caused by the timing of EasterMarch / April have been combined to avoid the distortion caused by the timing of Easter
Hilton vs London MarketHilton vs London MarketHilton vs London MarketHilton vs London Market
Cumulative Year to Date RevPAR PremiumCumulative Year to Date RevPAR Premium
£50£50
£60£60
£70£70
£80£80
JanJan
£90£90
FebFeb MarMar AprApr MayMay JuneJune
RevPAR (£)RevPAR (£)
4%4%
10%10%
18%18%PremiumPremium
6%6%
8%8%
12%12%
14%14%
16%16%The Market RevPAR 2002The Market RevPAR 2002
Hilton RevPAR 2002Hilton RevPAR 2002
Hilton RevPAR Premium 2002Hilton RevPAR Premium 2002
Market Source: PKF Hotel Consultancy ServicesMarket Source: PKF Hotel Consultancy Services
France, Germany, BeneluxFrance, Germany, BeneluxRevPAR Performance vs 2001RevPAR Performance vs 2001France, Germany, BeneluxFrance, Germany, BeneluxRevPAR Performance vs 2001RevPAR Performance vs 2001
Like for Like, Constant CurrenciesLike for Like, Constant Currencies0%0%
(10)%(10)%
(15)%(15)%
(25)%(25)%
(30)%(30)%BeneluxBenelux
(5)%(5)%
(20)%(20)%
FranceFrance GermanyGermany
Including ScandicIncluding ScandicMarch / April have been combined to avoid the distortion caused by the timing of EasterMarch / April have been combined to avoid the distortion caused by the timing of Easter
JanJan FebFeb Mar / AprMar / Apr MayMay JuneJune JulyJuly
Scandic - Occupancy, Rate and RevPAR Scandic - Occupancy, Rate and RevPAR Performance vs 2001Performance vs 2001Scandic - Occupancy, Rate and RevPAR Scandic - Occupancy, Rate and RevPAR Performance vs 2001Performance vs 2001
Like for Like, Constant CurrenciesLike for Like, Constant Currencies5%5%
0%0%
(5)%(5)%
(10)%(10)%
(15)%(15)%
(10.2)%(10.2)%
Occ % growthOcc % growth Rate growthRate growth RevPAR growthRevPAR growth
March / April have been combined to avoid the distortion caused by the timing of EasterMarch / April have been combined to avoid the distortion caused by the timing of Easter
2.5%2.5%
(5.4)%(5.4)%
(1.9)%(1.9)%
(5.9)%(5.9)%
(0.7)%(0.7)%
JanJan FebFeb Mar / AprMar / Apr MayMay JuneJune JulyJuly
Like for like hotels trading (3.9)
Openings / closures / major refurbishments (3.5)
Integration synergies 5.8
Like for like hotels trading (3.9)
Openings / closures / major refurbishments (3.5)
Integration synergies 5.8
Profit Impact£m
Profit Impact£m
Scandic - Financial UpdateScandic - Financial UpdateScandic - Financial UpdateScandic - Financial Update
Integration synergies in excess of £10m on an Integration synergies in excess of £10m on an annualised basisannualised basis
Integration synergies in excess of £10m on an Integration synergies in excess of £10m on an annualised basisannualised basis
Successful integrationSuccessful integration
Cost savings exceededCost savings exceeded
Transformed UK market positionTransformed UK market position
Returns held back by 11Returns held back by 11thth September and September and economic slowdowneconomic slowdown
Successful integrationSuccessful integration
Cost savings exceededCost savings exceeded
Transformed UK market positionTransformed UK market position
Returns held back by 11Returns held back by 11thth September and September and economic slowdowneconomic slowdown
Stakis - Post Acquisition ReviewStakis - Post Acquisition ReviewStakis - Post Acquisition ReviewStakis - Post Acquisition Review
Retail Betting 1,353.3 933.2 64.1 58.0
Telephone Betting 193.8 125.8 4.7 1.6
eGaming 192.3 62.8 5.1 0.2
Vernons 15.1 15.3 2.6 2.8
Worldwide Betting 1,754.5 1,137.1 76.5 62.6
Retail Betting 1,353.3 933.2 64.1 58.0
Telephone Betting 193.8 125.8 4.7 1.6
eGaming 192.3 62.8 5.1 0.2
Vernons 15.1 15.3 2.6 2.8
Worldwide Betting 1,754.5 1,137.1 76.5 62.6
2002£m
2002£m
Worldwide BettingWorldwide BettingWorldwide BettingWorldwide Betting
2001£m
2001£m
2002£m
2002£m
2001£m
2001£m
TurnoverTurnover Operating Profit (1)Operating Profit (1)
(1) Before goodwill amortisation and exceptional items(1) Before goodwill amortisation and exceptional items
Gross Win by ChannelGross Win by ChannelGross Win by ChannelGross Win by Channel
2002 Gross win - £319.9m2002 Gross win - £319.9m 2001 Gross win - £295.5m2001 Gross win - £295.5m
European RetailEuropean Retail Telephone BettingTelephone Betting eGamingeGaming
87%87%
8%8%5%5%
91%91%
4%4%5%5%
Gross win is before duty / gross profit tax are deductedGross win is before duty / gross profit tax are deductedNB. European retail includes AWPs net of VATNB. European retail includes AWPs net of VAT
UK Retail BettingUK Retail BettingUK Retail BettingUK Retail Betting
Year on Year Turnover Growth - Zero Deduction EffectYear on Year Turnover Growth - Zero Deduction Effect(2001/ 2 vs 2000/1)(2001/ 2 vs 2000/1)
0%0%
20%20%
40%40%
60%60%
OctOct
80%80%
NovNov DecDec JanJan FebFeb MarMar AprApr MayMay JuneJune
Actual growthActual growth Trendline (growth due to zero deduction)Trendline (growth due to zero deduction)
Growth due to zero deductionGrowth due to zero deduction
Telephone BettingTelephone BettingTelephone BettingTelephone Betting
Single account proposition across telephone, online and interactive TVSingle account proposition across telephone, online and interactive TV
Voice recognition on trial during World CupVoice recognition on trial during World Cup
Single account proposition across telephone, online and interactive TVSingle account proposition across telephone, online and interactive TV
Voice recognition on trial during World CupVoice recognition on trial during World Cup
2002£m
2002£m
2001£m
2001£m
Turnover 193.8 125.8
Gross win 15.0 14.6
Gross win margin 7.7% 11.6%
Operating profit 4.7 4.6
Average stake per call (£) 83.26 66.21
No. of calls (000’s) 2,264 1,840
Active customers (000’s) 87.7 80.2
Turnover 193.8 125.8
Gross win 15.0 14.6
Gross win margin 7.7% 11.6%
Operating profit 4.7 4.6
Average stake per call (£) 83.26 66.21
No. of calls (000’s) 2,264 1,840
Active customers (000’s) 87.7 80.2
eGamingeGamingeGamingeGaming
Turnover 192.3 62.8
Gross win (1) 26.8 10.4
Gross profit (2) 24.9 10.2
Gross profit % (2) 12.9% 16.2%
Operating profit 5.1 0.2
Active customers (000’s) (3) 179.4 83.3
Turnover 192.3 62.8
Gross win (1) 26.8 10.4
Gross profit (2) 24.9 10.2
Gross profit % (2) 12.9% 16.2%
Operating profit 5.1 0.2
Active customers (000’s) (3) 179.4 83.3
eGaming now has over 400,000 registered customerseGaming now has over 400,000 registered customers eGaming now has over 400,000 registered customerseGaming now has over 400,000 registered customers
2002£m
2002£m
2001£m
2001£m
(1) Gross win is before duty / gross profits tax are deducted(1) Gross win is before duty / gross profits tax are deducted(2) Gross profit is after duty / gross profits tax(2) Gross profit is after duty / gross profits tax(3) Active customers are those who placed a bet during the period(3) Active customers are those who placed a bet during the period
eGaming - Monthly TurnovereGaming - Monthly TurnovereGaming - Monthly TurnovereGaming - Monthly Turnover
4040
2525
1515
55
00
£m£m
2020
1010
£5m£5m
3030
3535
4545
£14m£14m
£41m£41m
64%64%
World CupWorld Cup
Euro 2000Euro 2000
June 2000June 2000 June 2001June 2001 June 2002June 2002
£23m£23m
eGaming SportsbookeGaming SportsbookeGaming SportsbookeGaming Sportsbook
First Half Turnover by CountryFirst Half Turnover by Country
UKUK Far EastFar East EuropeEurope
49%49%
4%4%10%10%
61%61%
1%1%6%6%
37%37%
32%32%
OtheOtherr
20022002 20012001
169% growth in sportsbook turnover year on year169% growth in sportsbook turnover year on year 169% growth in sportsbook turnover year on year169% growth in sportsbook turnover year on year
Hilton Group plc - Cash FlowHilton Group plc - Cash FlowHilton Group plc - Cash FlowHilton Group plc - Cash Flow
Opening net borrowings (1,473.9) (1,374.3)
Cash inflow from operating activities 211.8 193.9
Interest, tax and dividends paid (132.2) (134.5)
Free cash flow 79.6 59.4
Capital expenditure (85.2) (94.6)
Free cash flow after capex (5.6) (35.2)
Proceeds from asset sales 7.7 363.8
Acquisitions / disposals 3.5 (457.9)
5.6 (129.3)
Exchange and other movements (1) (43.6) 6.5
Net borrowings movement (38.0) (122.8)
Closing net borrowings (1,511.9) (1,497.1)
Opening net borrowings (1,473.9) (1,374.3)
Cash inflow from operating activities 211.8 193.9
Interest, tax and dividends paid (132.2) (134.5)
Free cash flow 79.6 59.4
Capital expenditure (85.2) (94.6)
Free cash flow after capex (5.6) (35.2)
Proceeds from asset sales 7.7 363.8
Acquisitions / disposals 3.5 (457.9)
5.6 (129.3)
Exchange and other movements (1) (43.6) 6.5
Net borrowings movement (38.0) (122.8)
Closing net borrowings (1,511.9) (1,497.1)
2002£m
2002£m
2001£m
2001£m
(1) Includes £48.6m adverse exchange (2001: £3.1m favourable exchange)(1) Includes £48.6m adverse exchange (2001: £3.1m favourable exchange)
Sao Paulo 11.6Gatwick 9.9Cologne - Scandic new build & rebrand 6.2Syndhaven - Scandic rebrand 2.7Barcelona 2.7Kalastajatorppa - refurbishment 2.4Zurich 2.0Other (all under £2m) 21.9Total Hotels 59.4Total LivingWell 5.5
64.9
Sao Paulo 11.6Gatwick 9.9Cologne - Scandic new build & rebrand 6.2Syndhaven - Scandic rebrand 2.7Barcelona 2.7Kalastajatorppa - refurbishment 2.4Zurich 2.0Other (all under £2m) 21.9Total Hotels 59.4Total LivingWell 5.5
64.9
BS 2000 EPOS system 1.6Numbers terminals 1.1eGaming / Telephone betting 3.9Other (including: acquisitions / new licences £1.8m,relocations £2.9m, refurbs / extensions £3.1m) 13.7
20.385.2
BS 2000 EPOS system 1.6Numbers terminals 1.1eGaming / Telephone betting 3.9Other (including: acquisitions / new licences £1.8m,relocations £2.9m, refurbs / extensions £3.1m) 13.7
20.385.2
HotelsHotels
Worldwide BettingWorldwide Betting
TotalTotal
2002£m
2002£m
Hilton Group plc - Analysis ofHilton Group plc - Analysis ofCapital ExpenditureCapital ExpenditureHilton Group plc - Analysis ofHilton Group plc - Analysis ofCapital ExpenditureCapital Expenditure
Successful bond issues:Successful bond issues:- Euro 500 million 6.5% due July 2009- Euro 500 million 6.5% due July 2009- Sterling 250 million 7.125% due July 2012- Sterling 250 million 7.125% due July 2012
Committed facilities:Committed facilities:- £1 billion surplus over gross debt- £1 billion surplus over gross debt- weighted average term of committed facilities is 4 years- weighted average term of committed facilities is 4 years
No financial ratio covenants in existing facility agreementsNo financial ratio covenants in existing facility agreements
Fixed interest rates on 50% of gross debt for a weighted average term of Fixed interest rates on 50% of gross debt for a weighted average term of 3 years3 years
Foreign currency assets hedged by borrowing inForeign currency assets hedged by borrowing inforeign currenciesforeign currencies
Successful bond issues:Successful bond issues:- Euro 500 million 6.5% due July 2009- Euro 500 million 6.5% due July 2009- Sterling 250 million 7.125% due July 2012- Sterling 250 million 7.125% due July 2012
Committed facilities:Committed facilities:- £1 billion surplus over gross debt- £1 billion surplus over gross debt- weighted average term of committed facilities is 4 years- weighted average term of committed facilities is 4 years
No financial ratio covenants in existing facility agreementsNo financial ratio covenants in existing facility agreements
Fixed interest rates on 50% of gross debt for a weighted average term of Fixed interest rates on 50% of gross debt for a weighted average term of 3 years3 years
Foreign currency assets hedged by borrowing inForeign currency assets hedged by borrowing inforeign currenciesforeign currencies
TreasuryTreasuryTreasuryTreasury
David MichelsDavid MichelsGroup Chief ExecutiveGroup Chief Executive
David MichelsDavid MichelsGroup Chief ExecutiveGroup Chief Executive
Hilton Group plcHilton Group plcHilton Group plcHilton Group plc
42.242.2
43.943.9
42.442.4
46.046.0
28.828.8
41.341.3
47.647.6
44.744.7
47.247.2
49.549.5
32.132.1
44.844.8
68.368.3
48.048.0
55.655.6
Revenue Per Available Room - Like for Like*Revenue Per Available Room - Like for Like* Revenue Per Available Room - Like for Like*Revenue Per Available Room - Like for Like*
20022002 20012001 GrowthGrowth 2002200220022002 20012001 GrowthGrowth
LondonLondon
ProvincesProvinces
Total United KingdomTotal United Kingdom
Europe & AfricaEurope & Africa
Middle East &Middle East &Asia PacificAsia Pacific
The AmericasThe Americas
Total HiltonTotal Hilton
Scandic brandedScandic branded
Total HotelsTotal Hotels
77.877.8
49.049.0
59.759.7
(11.3)%(11.3)%
(1.8)%(1.8)%
(10.2)%(10.2)%
(7.1)%(7.1)%
(10.3)%(10.3)%
(7.8)%(7.8)%
55.155.1
42.742.7
48.748.7
51.451.4
34.034.0
46.746.7
58.558.5
41.341.3
52.152.1
53.753.7
33.433.4
48.348.3
(5.8)%(5.8)%
3.5% 3.5%
(6.5)%(6.5)%
(4.3)%(4.3)%
1.8% 1.8%
(3.3)%(3.3)%
48.748.7
43.343.3
45.645.6
48.748.7
31.431.4
44.044.0
First QuarterFirst Quarter
20012001 GrowthGrowth
53.253.2
43.043.0
49.749.7
51.651.6
32.832.8
46.546.5
(8.4)%(8.4)%
0.8% 0.8%
(8.2)%(8.2)%
(5.7)%(5.7)%
(4.2)%(4.2)%
(5.4)%(5.4)%
Second QuarterSecond Quarter Six Months to JuneSix Months to June
Hilton branded:Hilton branded:
(12.2)%(12.2)%
(2.0)%(2.0)%
(6.9)%(6.9)%
74.074.0
51.551.5
59.859.8
85.685.6
52.952.9
65.065.0
(13.6)%(13.6)%
(2.6)%(2.6)%
(8.0)%(8.0)%
71.271.2
49.849.8
57.757.7
81.781.7
51.051.0
62.462.4
(12.8)%(12.8)%
(2.4)%(2.4)%
(7.5)%(7.5)%
*All at constant currencies, including a full 6 months of Scandic in 2001*All at constant currencies, including a full 6 months of Scandic in 2001
Hotels 214 278 144 139
Worldwide betting 30 40 40 53
Major property purchases 84 147 - -
Capital expenditure 328 465 184 192
Disposals - hotels (151) (13) (355) *
177 452 (171)
Hotels 214 278 144 139
Worldwide betting 30 40 40 53
Major property purchases 84 147 - -
Capital expenditure 328 465 184 192
Disposals - hotels (151) (13) (355) *
177 452 (171)
Cash 461 - 454
Shares 882 - 165
Cash 461 - 454
Shares 882 - 165
CapexCapexCapexCapex
Acquisitions (Stakis and Scandic)Acquisitions (Stakis and Scandic)
1999£m
1999£m
2000£m
2000£m
2001£m
2001£m
Forecast 2002£m
Forecast 2002£m
* Potential sale and leaseback deal* Potential sale and leaseback deal
Hotels - Property net book value £2.5bn £2.8bnHotels - Property net book value £2.5bn £2.8bn £2.6bn£2.6bn
Hilton International - PropertyHilton International - PropertyHilton International - PropertyHilton International - Property
Net Book Value movement over 4 yearsNet Book Value movement over 4 years
UK £1.8bn £1.9bn £1.6bn £1.6bn
Overseas £0.7bn £0.9bn £1.0bn £1.0bn
Total £2.5bn £2.8bn £2.6bn £2.6bn
UK £1.8bn £1.9bn £1.6bn £1.6bn
Overseas £0.7bn £0.9bn £1.0bn £1.0bn
Total £2.5bn £2.8bn £2.6bn £2.6bn
19991999 20002000 20012001 20022002
ScandicScandicScandicScandic
BrandingBrandingBrandingBranding
HiltonHilton
- 475 hotels in 70 countries (233 HHC)- 475 hotels in 70 countries (233 HHC)
- 40 more on the way- 40 more on the way
- Owned / management contract / leased- Owned / management contract / leased
HiltonHilton
- 475 hotels in 70 countries (233 HHC)- 475 hotels in 70 countries (233 HHC)
- 40 more on the way- 40 more on the way
- Owned / management contract / leased- Owned / management contract / leased
Scandic (mid-market)Scandic (mid-market)
- 137 hotels- 137 hotels
- Target 200 by end 2004- Target 200 by end 2004
- Management contract / leased / franchised- Management contract / leased / franchised
Scandic (mid-market)Scandic (mid-market)
- 137 hotels- 137 hotels
- Target 200 by end 2004- Target 200 by end 2004
- Management contract / leased / franchised- Management contract / leased / franchised
LivingWellLivingWell
UKUK 123,600123,600
InternationalInternational 16,02116,021
TotalTotal 139,621139,621
Current MembershipCurrent Membership
Half Year Shop Performance - UK and Half Year Shop Performance - UK and JerseyJerseyHalf Year Shop Performance - UK and Half Year Shop Performance - UK and JerseyJersey
19961996 19971997 19981998 19991999 20002000 20012001
Average numberof shops
PBIT £m 29.1 37.1 43.3 34.7 36.1 48.3 58.1
PBIT pershop £k 15.9 19.6 23.0 18.2 19.2 25.7 30.8
Average numberof shops
PBIT £m 29.1 37.1 43.3 34.7 36.1 48.3 58.1
PBIT pershop £k 15.9 19.6 23.0 18.2 19.2 25.7 30.8
1,831 1,892 1,892 1,910 1,879 1,883 1,8841,831 1,892 1,892 1,910 1,879 1,883 1,884
20022002
N.B. Excludes SIS contributionN.B. Excludes SIS contribution
Horses 13.5% 14.7% 12.7% 12.9%
Greyhounds 17.2% 16.8% 17.2% 15.7%
Football (3) 15.5% 23.2% 17.8% 15.9%
Sports 14.2% 12.8% 10.7% 10.7%
Numbers 24.4% 23.3% 24.3% 26.1%
Average 14.9% 15.9% 14.2% 14.0%
Horses 13.5% 14.7% 12.7% 12.9%
Greyhounds 17.2% 16.8% 17.2% 15.7%
Football (3) 15.5% 23.2% 17.8% 15.9%
Sports 14.2% 12.8% 10.7% 10.7%
Numbers 24.4% 23.3% 24.3% 26.1%
Average 14.9% 15.9% 14.2% 14.0%
20022002
UK Shops -UK Shops -Gross Profit Gross Profit (1)(1) Product margins - First Half Product margins - First HalfUK Shops -UK Shops -Gross Profit Gross Profit (1)(1) Product margins - First Half Product margins - First Half
2001 (2)2001 (2) 2000 (2)2000 (2)Average
’97 - ’00 (2)
Average’97 - ’00 (2)
(1) Gross profit is after duty / gross profits tax(1) Gross profit is after duty / gross profits tax(2) Adjusted for gross profits tax(2) Adjusted for gross profits tax(3) Excluding the World Cup the gross profit margin on football for 2002 was 18.4%(3) Excluding the World Cup the gross profit margin on football for 2002 was 18.4%
Shop InnovationShop InnovationShop InnovationShop Innovation
Further 14 shops recently purchased. 16 more in second halfFurther 14 shops recently purchased. 16 more in second half
EPOS drives improved efficiency, the new screen system and Fixed Odds Betting EPOS drives improved efficiency, the new screen system and Fixed Odds Betting Terminals (FOBT’s)Terminals (FOBT’s)
FOBT’s averaging £3,900 p/w per terminal sinceFOBT’s averaging £3,900 p/w per terminal sincenew bets introduction two months agonew bets introduction two months ago
Turnover +50% this year vs lastTurnover +50% this year vs last
Further 14 shops recently purchased. 16 more in second halfFurther 14 shops recently purchased. 16 more in second half
EPOS drives improved efficiency, the new screen system and Fixed Odds Betting EPOS drives improved efficiency, the new screen system and Fixed Odds Betting Terminals (FOBT’s)Terminals (FOBT’s)
FOBT’s averaging £3,900 p/w per terminal sinceFOBT’s averaging £3,900 p/w per terminal sincenew bets introduction two months agonew bets introduction two months ago
Turnover +50% this year vs lastTurnover +50% this year vs last
Budd Review and the Casino BusinessBudd Review and the Casino BusinessBudd Review and the Casino BusinessBudd Review and the Casino Business
Telephone Betting Telephone Betting Telephone Betting Telephone Betting
Year on Year Turnover GrowthYear on Year Turnover Growth
0%0%
10%10%
30%30%
40%40%
1999 vs 19981999 vs 1998
60%60%
2000 vs 19992000 vs 1999 2001 vs 20002001 vs 2000 2002 HY vs 2001 2002 HY vs 2001 HYHY
50%50%
20%20%
29%29%
6%6%
18%18%
55%55%
eGaming Gross WineGaming Gross WineGaming Gross WineGaming Gross Win
0.00.0
5.05.0
15.015.0
20.020.0
1st half 1st half 20002000
30.030.0
22ndnd half 2000 half 2000 22ndnd half half20012001
11stst half half20022002
25.025.0
10.010.0
0.30.3
2.82.8
10.410.4
26.826.8
£m£m
11stst half half20012001
15.915.9
Registered playersRegistered players 392,000392,000 65,00065,000 6,4006,400
ActiveActive 130,000130,000 28,00028,000 2,5002,500
CurrenciesCurrencies 1515 1515 1515
£ stake per bet / play£ stake per bet / play £19.17£19.17 £10.26£10.26 £35£35
LanguagesLanguages 1111 1111 11
Registered playersRegistered players 392,000392,000 65,00065,000 6,4006,400
ActiveActive 130,000130,000 28,00028,000 2,5002,500
CurrenciesCurrencies 1515 1515 1515
£ stake per bet / play£ stake per bet / play £19.17£19.17 £10.26£10.26 £35£35
LanguagesLanguages 1111 1111 11
eGamingeGamingeGamingeGaming
(Average pot)(Average pot)(Average pot)(Average pot)
SportsbookSportsbookSportsbookSportsbook CasinoCasinoCasinoCasino PokerPokerPokerPoker
(Played since 1 Jan 2002)(Played since 1 Jan 2002)(Played since 1 Jan 2002)(Played since 1 Jan 2002)
(Internet only)(Internet only)(Internet only)(Internet only)
MayMay JuneJune JulyJuly August to dateAugust to date
2929
4848
5656
6161
Poker - Average Rake Per WeekPoker - Average Rake Per WeekPoker - Average Rake Per WeekPoker - Average Rake Per Week
00
2020
4040
5050
7070
6060
3030
£k£k
1010
Total number of betsTotal number of bets 1.2 million1.2 million
TurnoverTurnover £21.6 million£21.6 million
Gross winGross win £2.5 million£2.5 million
Total number ofTotal number ofnew customer registrationsnew customer registrations 45,00045,000
% of business non-UK% of business non-UK 68%68%
Total number of betsTotal number of bets 1.2 million1.2 million
TurnoverTurnover £21.6 million£21.6 million
Gross winGross win £2.5 million£2.5 million
Total number ofTotal number ofnew customer registrationsnew customer registrations 45,00045,000
% of business non-UK% of business non-UK 68%68%
World Cup 2002World Cup 2002World Cup 2002World Cup 2002
Internet and Interactive TV BettingInternet and Interactive TV Betting
HotelsHotelsRebound / RevPAR PBIT increaseRebound / RevPAR PBIT increase
Peer / Yield premium to risePeer / Yield premium to rise
New income stream from midNew income stream from midmarket & resortsmarket & resorts
HotelsHotelsRebound / RevPAR PBIT increaseRebound / RevPAR PBIT increase
Peer / Yield premium to risePeer / Yield premium to rise
New income stream from midNew income stream from midmarket & resortsmarket & resorts
Upside / OUpside / OpportupportunitiesnitiesUpside / OUpside / Opportupportunitiesnities
BettingBettingFOBT income streamFOBT income stream
Budd Casinos / SlotsBudd Casinos / Slots
eGaming to doubleeGaming to double
Turnover increase / more steamTurnover increase / more steam
Telephone betting / opportunitiesTelephone betting / opportunities
BettingBettingFOBT income streamFOBT income stream
Budd Casinos / SlotsBudd Casinos / Slots
eGaming to doubleeGaming to double
Turnover increase / more steamTurnover increase / more steam
Telephone betting / opportunitiesTelephone betting / opportunities
Strong capex / cost controlStrong capex / cost control
Capital redeploymentCapital redeployment
EBITDA growth from invested capitalEBITDA growth from invested capital
Strong capex / cost controlStrong capex / cost control
Capital redeploymentCapital redeployment
EBITDA growth from invested capitalEBITDA growth from invested capital