Centel Q4 earnings up 44%
SET-listed Central Plaza Hotel Plc (Centel) has reported a 43.5% increase in net profit to 416 million baht with total consolidated revenue of 4.98 billion baht in the fourth quarter of 2016.
Centel chairman Suthikiati Chirathivat said the company’s operating performance for the fourth quarter last year was better than expected, in spite of challenges including floods that forced Centara Grand Phuket to close down for three weeks in November.
He said new regulations relating to “zero dollar” tours from China together with increased visa fees during October to November led to a decrease in the number of Chinese tourists. But despite the obstacles Centel achieved similar consolidated revenue as 2015.
Mr Suthikiati attributed the large increase in net profit to the company’s ongoing cost management efforts and lower interest costs resulting from borrowings being acquired from alternative sources of funds.
Centel’s earnings before interest, tax, depreciation and amortisation (Ebitda) increased by 7.8% year-on-year, totalling 1.1 billion baht, based on ongoing effective cost management, he said.
For the full year, consolidated revenue rose by 3.4% year-on-year to 19.9 billion baht, resulting from continuing growth for both the food and hotel businesses. While the associated Ebitda margin reached its target of 21.7% of total revenues, when combined with the lower interest rates paid it led to net profit of 1.85 billion baht, an 11.2% increase year-on-year.
“We will continue to increase shareholder value through raising overall revenue from both organic growth and via mergers and acquisitions,” said Mr Suthikiati.