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Banyan Tree loss widens to S$3.67 million in Q3
RESORT operator Banyan Tree sank deeper into the red with a net loss of S$3.67 million for the third quarter ended Sept 30, widening from S$1.42 million previously.
Revenue declined 9 per cent to S$72.75 million as revenue contributions were lower across all three of its business segments. A 10 per cent drop in revenue from its hotel investments segment was seen as tourist arrivals were hurt by political tensions in Thailand, while in China arrivals to the Lijiang/Shangri-la region fell following a knife attack in Kunming railway station in March this year.
Meanwhile, its property sales segment chalked up a 7 per cent slide in revenue as it recognised four units at lower value, while its fee-based segment from spa/gallery and golf operations was also impacted by Thailand, down 7 per cent.
Loss per share widened to 0.48 Singapore cent from 0.19 Singapore cent.
"Given the challenging year, it is likely that FY14 will not be profitable," Banyan Tree warned. "Currently the hotel's forward bookings for owned hotels in Thailand for 4Q is 17 per cent below the same period last year, and overall is below by 13 per cent."
However, bookings for its property sales segment are expected to pick up in Q4, which is high season.