Centel announces Q3 increases in revenue, profit

Despite falling tourism numbers, Central Plaza Hotel Plc (Centel) has posted 9% third-quarter revenue growth in 2018 from the same period a year ago and 20% net profit growth.

In the third quarter, Centel totalled 5.32 billion baht in consolidated revenues with 1.11 billion in consolidated earnings before interest, tax, depreciation and amortisation (Ebitda).

Consolidated net profit was 442 million baht.

The company said the increase in revenue and profits was down to improved operating results for both its hotel and food businesses.

Centel’s hotel businesses achieved 2.21 billion baht in revenue in the third quarter of this year, an increase of 4% year-on-year, which came from revenue recognition of the Centra by Centara Government Complex Hotel & Convention Center Chaeng Watthana and the COSI Samui Chaweng Beach hotel that started operations at the end of 2017.

Total Ebitda was 676 million baht, an increase of 9% year-on-year, while its Ebitda margin improved to 30.6% in the third quarter of 2018, up from 29.4% in the same period last year.

Centel said this was primarily because of operating performance from Centara Grand & Bangkok Convention Centre at CentralWorld.

Its food business also saw improvement, with sales growing 13% year-on-year. Samestore sales grew 3% year-on-year, mainly from brands KFC and Ootoya. Centel’s food business achieved 438 million baht total Ebitda, an increase of 9% year-on-year.

The company said it is confident the performance results for its food and hotel businesses will continue for the remainder of 2018.

Total revenues from new hotels and the meeting and convention events should lead to full-year growth for the hotel business of 4–7% year-on-year.

Centel expects full-year 2018 growth in same-store sales for its food business to be 1-2% year-on-year, comprising 8-9% of total sales. The net number of quick-service restaurants for the company in 2018 is predicted to grow 8% from last year.