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Banyan Tree widens losses on weaker hotel, property business
RESORT operator Banyan Tree Holdings sank further into the red on Wednesday, posting losses of S$7.9 million for the second quarter, versus S$5.4 million a year ago.
This came as revenue slid 24 per cent to S$51.8 million, dragged by a sluggish hotel business and fewer property sales recognised.
Hotel investments - which generate more than half of Banyan Tree's revenue - saw a 13 per cent drop in revenue to S$33.6 million, due to weaker performance in Seychelles and Thailand.
Revenue from property sales tanked 70 per cent at S$4.5 million, as sales of properties like Cassia Phuket and Laguna Park are only expected to be recognised in the fourth quarter when construction is completed.
Second-quarter loss per share stood at 0.94 Singapore cent, against 0.64 cent a year ago.
For the half-year, Banyan Tree slid into a S$2.7 million net loss, reversing a gain of S$14.8 million in the preceding year. That translated into a loss per share of 0.32 Singapore cent against earnings per share of 1.77 cents.
Revenue came in at S$133 million, down 20 per cent from the year before.
Looking ahead, Banyan Tree expects hotel forward bookings for the third quarter to come in at lower levels than last year.
For the property sales segment, revenue recognition will be largely dependent on completing and handing over completed units to buyers, the group said.