FIH proposes a cash payment of NT$12.39 per share

0
  • By Crystal Hsu / Staff Reporter

Formosa International Hotels Corp (FIH, 晶華國際酒店集團) yesterday proposed to distribute a cash dividend of NT$12.39 per share although the COVID-19 pandemic continues to weigh on its business operations.

The dividend program follows the Taipei-based hotel provider’s announcement that net profit more than tripled last year to NT$2.24 billion (US$78.46 million), while consolidated revenue fell 9.08% to NT$4.93 billion from a year earlier.

The financial results translated into earnings per share of NT$17.09, up 182.35% year-on-year, according to company data.

Photo: ANC

A soft lockdown in May last year due to a local COVID-19 outbreak weighed on the company’s food and drink sales, while border controls continue to limit its chambers business hosts, said FIH.

However, the sale of its stake in Pizzavest Co Ltd (達美樂披薩), the operator of Domino’s Taiwan, to Australian-listed fast food operator Dominio’s Pizza Enterprises Ltd totaled NT$1.64 billion and represented the aggressive earnings growth, he said.

The proposed dividend represents a 7.38% yield based on the company’s closing price of NT$168 per share yesterday, after a 2.75% gain that outpaced the 0.98% rise in TAIEX .

The conglomerate, which operates hotels under the Silks Place (晶英酒店) and Just Sleep Hotel & Resort (捷絲旅) brands across Taiwan, said it was repositioning Regent Taipei (台北晶華酒店) as a resort urban, while properties in Yilan, Tainan and Hualien counties are doing well, thanks to a boom in domestic tourism.

FIH said it has launched numerous promotional campaigns, but they have had limited success for Regent Taipei, its flagship property in Taipei’s Zhongshan District (中山), due to its heavy reliance on foreign travellers.

Shortening the quarantine requirement from 14 to 10 days would have little benefit as many businesses around the world have become accustomed to meeting online over the past two years, the FIH president said, Steven Pan (潘思亮), adding that the trend should continue.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. The final decision will be at the discretion of The Taipei Times.

Share.

About Author

Comments are closed.