Banyan Tree Q1 profit down 72% on lower other income

SINGAPORE-BASED leisure and hospitality company Banyan Tree Holdings posted a 72 per cent decline in net profit for the first quarter to $4 million, compared to the $14.2 million it made during the same period last year.

Revenue for the three months ended March 31 slid 3 per cent to $93.9 million, compared to the $96.9 million it earned last year. "Other income decreased by $16.5 million from $18.1 million in 1Q13 to $1.6 million in 1Q14 as other income in 1Q13 included gain on sale of Angsana Velavaru hotel," said Banyan. Earnings per share for the quarter were 0.53 cent, against 1.87 cents per share last year.

The group lost revenue from its hotel investments, down 5 per cent from last year, and from its fee-based segments - 13 per cent less for spa/gallery operations and 12 per cent less for design & others. It said that its forward bookings for owned-hotels in Thailand for the second quarter are 25 per cent below the same period last year, causing it to be cautious about its operations there in the near term. However, it is opening five new resorts in the next 12 months - four in China and one in Morocco.