Banyan Tree profits despite challenges
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Banyan Tree Holdings Limited has announced that it recorded an operating profit of SG$33.5 million - down 55% year-on-year - after a challenging start to the year. Revenue decreased 38% to SG$148.0 million during the six-month period. Results for the second quarter alone showed operating profit declining 62% to SG$9.0 million, mainly due to the latest round of political disturbances in Thailand, which flared up in Bangkok and Pattaya in April this year.
Banyan Tree’s Executive Chairman, Ho KwonPing, said; “Second quarter is traditionally our low season of the year. The loss reported was therefore in line with our expectation. We remained profitable for the first half of the year and we are hopeful that our business segments will further pick up in the second half with the continuing stabilisation of the global economy and the Thai political situation.”
The group’s hotel investment segment achieved revenue of SG$32.4 million in Q2, a decline of SG$5.7 million or 15% year-on-year. The decrease was largely due to resorts in Thailand (SG$6.4 million) and Maldives (SG$900,000), partially offset by higher revenue from China (SG$1.0 million). Spa revenue increased by SG$100,000 or 3% from SG$6.1 million in Q2 2008 to SG$6.2 million in Q2 2009 mainly due to higher sales of retail products in Maldives, Seychelles, China and Bintan.
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