InterContinental Hotels Group PLC (NYSE:IHG) Q2 2024 Results Conference Call August 6, 2024 4:30 AM ET
Company Participants
Stuart Ford - Head, IR
Elie Maalouf - Group CEO
Michael Glover - CFO
Heather Balsley - Chief Commercial & Marketing Officer
Conference Call Participants
Vicki Stern - Barclays
Jamie Rollo - Morgan Stanley
Richard Clarke - Bernstein
Jaina Mistry - Jefferies
Estelle Weingrod - JPMorgan
Muneeba Kayani - Bank of America
Jarrod Castle - UBS
Jaafar Mestari - BNP Paribas
Alex Brignall - Redburn Lantech
Andre Juillard - Deutsche Bank
Operator
We now begin the Q&A session. [Operator Instructions]
Question-and-Answer Session
Operator
[Operator Instructions] Our first question for today comes from Vicki Stern of Barclays.
Vicki Stern
First one was just on unit growth. So, I think if we strip back NOVUM from this year, it looks like you'll be sort of around 3.5% range in terms of net unit growth. Is that the right underlying rate to have in mind for you going forward? Or can you see that accelerating without any sort of larger deal signings like NOVUM? And related to that, I noticed that exits were just a nudge higher than your 1.5% in the first half, just checking that 1.5% is still the right level of exits that you've got in mind going forward.
Second one is on incentive management fees in China. So we saw H1 IMFs were down a few million to $19 million in the first half. Can you just talk about your expectations there for the full year? Obviously, one of your competitors has been flagging the weakness there. And then just more broadly, your outlook for China as you see it over the next 6 to 12 months?
And then just finally, on the credit card opportunity, that was helpful color from Heather in the prerecorded presentation. Just curious when you think you might be in a position to give any clearer guidance on the quantum of that material revenue upside that was mentioned there. Obviously, any indications today on how we should be framing that materiality would be great.
Elie Maalouf
Okay. Hello, Vicki, how are you? Thank you, everybody, for joining our call today. I was supposed to give an intro, but I guess we're jumping right into the questions, which is fine. I know we'll get right to it.
So on your question about net system size growth expectations and NOVUM. A couple of things. We're exactly today, where we said we would be at the first quarter, when we announced the NOVUM deal and discussed it. We said that we were comfortable when a system size expectations, consensus back then, which was 4. And we said that included NOVUM and we said that NOVUM gave us greater confidence in reaching that system size expectations this year and actually beyond this year.