Hilton Worldwide Holdings Inc (HLT) has reported 76.05 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $74 million, or $0.22 a share in the quarter, compared with $309 million, or $0.94 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $125 million, or $0.38 a share compared with $49 million or $0.15 a share, a year ago. Revenue during the quarter grew 25.20 percent to $2,161 million from $1,726 million in the previous year period. Gross margin for the quarter expanded 94 basis points over the previous year period to 21.80 percent. Total expenses were 87.18 percent of quarterly revenues, down from 90.15 percent for the same period last year. This has led to an improvement of 297 basis points in operating margin to 12.82 percent.
Operating income for the quarter was $277 million, compared with $170 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $424 million compared with $315 million in the prior year period. At the same time, adjusted EBITDA margin improved 137 basis points in the quarter to 19.62 percent from 18.25 percent in the last year period.
Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "We are extremely pleased with our first quarter as a simplified, fee-driven business following completion of the spin-offs of Park and HGV. We exceeded the high end of our Adjusted EBITDA and diluted EPS, adjusted for special items, guidance in the quarter and, as a result, we are raising these guidance ranges for the full year. Strong development momentum continued into 2017, and we expect another record year for construction starts, openings and net unit growth. We opened nearly 10,000 rooms in the quarter and approved nearly 27,000 rooms for development, a third of which are for our newest brands."
For the second-quarter 2017, Hilton Worldwide Holdings Inc expects net income to be in the range of $154 million to $171 million and expects adjusted net income to be in the range of $154 million to $171 million and its diluted earnings per share to be in the range of $0.47 to $0.51 diluted earnings per share to be in the range of $0.47 to $0.51 and adjusted diluted earnings per share to be in the range of $0.47 to $0.51.
For financial year 2017, Hilton Worldwide Holdin expects net income to be in the range of $523 million to $548 million and expects adjusted net income to be in the range of $574 million to $599 million and its and diluted earnings per share to be in the range of $1.58 to $1.65 and adjusted diluted earnings per share to be in the range of $1.73 to $1.81.
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