Revaluation gains lift Banyan's Q4 profit

Singapore

LIFTED by revaluation gains from its properties in Seychelles, resort operator Banyan Tree chalked up a 13 per cent year-on-year rise in net profit to S$4.13 million for the fourth quarter ended Dec 31, 2014.

Revenue fell 6 per cent to S$91.83 million as both its fee-based and hotel investments segments recorded lower revenue. This was partially offset by higher revenue from its property sales division.

Revenue from its hotel investment segment fell 5 per cent to S$54.69 million as its hotels in Thailand, Seychelles and the Maldives were hit by weaker demand from Europe, and Russia in particular.

Russia, which has been struggling with the sharp depreciation of its rouble currency amid sliding oil prices and economic sanctions, is a high-yield source market for Banyan Tree during the high season. The high season is typically Q1 and Q4.

Forward bookings for owned hotels across its network for 1Q15 is currently down 7 per cent year-on-year, it warned.

Its property sales segment saw an 11 per cent increase in revenue to S$13.49 million as 20 units of Laguna Park townhomes/villas, Laguna Village villa/bungalow, Banyan Tree Phuket villas and Banyan Tree Bintan villa were completed and recognised. In contrast, the figure for 4Q13 was eight units.

Meanwhile, its fee-based segment revenue fell 16 per cent to S$23.65 million owing to lower architectural and design fees for projects in China, based on milestones achievements.

Total costs and expenses for the quarter eased 4 per cent to S$77.37 million partly due to lower salaries and related expenses as headcount was lower.

For the full year, net profit slumped 94 per cent to S$1.03 million while revenue slipped 8 per cent to S$327.37 million.

Executive chairman Ho Kwon Ping said: "Going forward, amidst the volatility in the global economy, we are cautiously optimistic of a better performance in 2015 boosted in part by confirmed property sales totalling S$110 million which will be substantially recognised in 2015. The outlook for our planned property sales in Wenjiang, Chengdu, is positive."

So far, Banyan Tree has received pre-launch booking deposits for 151 units, or 71 per cent of total units available under that phase.

The group's cash and cash equivalents was S$168.2 million as at Dec 31, 2014.

Banyan Tree has declared a dividend of 0.13 cent per share for the financial year, versus 1.0 cent per share previously.

The counter closed unchanged at 54 Singapore cents on Thursday.