9. Earnings per ordinary share
Basic earnings per ordinary share is calculated by dividing the profit for the year available for IHG equity holders by the weighted average number of ordinary shares, excluding investment in own shares, in issue during the year.
Diluted earnings per ordinary share is calculated by adjusting basic earnings per ordinary share to reflect the notional exercise of the weighted average number of dilutive ordinary share awards outstanding during the year.
Adjusted earnings per ordinary share is disclosed in order to show performance undistorted by exceptional items, to give a more meaningful comparison of the Group’s performance.
| LOGO | Information concerning non-GAAP measures can be found in the Strategic Report on page 26. |
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Continuing and total operations |
2017 | 2016 | 2015 | |||||||||
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Basic earnings per ordinary share |
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Profit available for equity holders ($m) |
592 | 414 | 1,222 | |||||||||
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Basic weighted average number of ordinary shares (millions) |
193 | 212 | 235 | |||||||||
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Basic earnings per ordinary share (cents) |
306.7 | 195.3 | 520.0 | |||||||||
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Diluted earnings per ordinary share |
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Profit available for equity holders ($m) |
592 | 414 | 1,222 | |||||||||
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Diluted weighted average number of ordinary shares (millions) |
194 | 214 | 238 | |||||||||
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Diluted earnings per ordinary share (cents) |
305.2 | 193.5 | 513.4 | |||||||||
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Adjusted earnings per ordinary share |
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Profit available for equity holders ($m) |
592 | 414 | 1,222 | |||||||||
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Adjusting items (note 5): |
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Exceptional items before tax ($m) |
(4 | ) | 29 | (819 | ) | |||||||
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Tax on exceptional items ($m) |
2 | (12 | ) | 8 | ||||||||
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Exceptional tax ($m) |
(118 | ) | — | — | ||||||||
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Adjusted earnings ($m) |
472 | 431 | 411 | |||||||||
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Basic weighted average number of ordinary shares (millions) |
193 | 212 | 235 | |||||||||
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Adjusted earnings per ordinary share (cents) |
244.6 | 203.3 | 174.9 | |||||||||
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Adjusted diluted earnings per ordinary share |
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Adjusted earnings ($m) |
472 | 431 | 411 | |||||||||
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Diluted weighted average number of ordinary shares (millions) |
194 | 214 | 238 | |||||||||
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Adjusted diluted earnings per ordinary share (cents) |
243.3 | 201.4 | 172.7 | |||||||||
| 2017 millions |
2016 millions |
2015 millions |
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Diluted weighted average number of ordinary shares is calculated as: |
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Basic weighted average number of ordinary shares |
193 | 212 | 235 | |||||||||
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Dilutive potential ordinary shares |
1 | 2 | 3 | |||||||||
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| 194 | 214 | 238 | ||||||||||
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