SINGAPORE (Aug 10): Banyan Tree Holdings reported 2Q17 losses narrowed to $12.3 million from $14.4 million in losses a year ago.
Revenue in 2Q17 climbed 6% to $69.8 million, from $65.9 million a year ago.
Revenue from its hotel investments segment grew 10% to $42.0 million in 2Q17, on the back of higher contribution from Thailand and Seychelles.
Revenue from its fee-based segment increased by 25% to $16.4 million in 2Q17.
This was mainly due to higher hotel management fees from resorts in China, Mauritius and Mexico; higher revenue from Spa/Gallery operations in China; and higher architectural and design fees earned from projects in Thailand and Dubai based on project milestones.
The higher revenue was partially offset by a 21% decline in its property sales segment to $11.5 million in 2Q17. This was despite a higher number of units recognised during the quarter, and largely due to the lower selling price of Laguna Chengdu.
The group recorded earnings before interests, taxes, depreciation and amortisation (EBITDA) of $0.4 million in 2Q17, compared to an operating loss of $3.4 million a year ago.
For the 1H ended June, EBITDA improved 30% to $18.9 million, from $14.6 million a year ago.
On top of higher revenue, operating profit improved due write-back of provision for doubtful debts following payments by several hotel owners in China; lower marketing expenses on hotel marketing and property sales commission; and lower foreign exchange losses.
As at end June, cash and cash equivalents stood at $95.7 million.
Looking ahead, Banyan Tree says an International Monetary Fund (IMF) report that forecasts an upward revision of growth for Europe and China will likely bode well for the group as the two regions are its key source markets.
The group adds that it has unrecognised revenue of $154.0 million from its property sales business as at end June, of which some 30% will be progressively recognised in the second half of 2017.
Shares in Banyan Tree closed 1.5 cents lower at 57 cents on Thursday.
