SINGAPORE (May 16): Banyan Tree Holdings reported a 74% decline in 1Q19 earnings to $5.2 million from $20.2 million on the back of lower revenue, as well as the absence of one-off gains from the dilution of the group’s interest in its China entities.
Revenue fell 17% to $81.2 million from $98.2 million in 1Q18, mainly attributable to lower contributions from the Hotel Investments segment in the absence of revenue from Banyan Tree Seychelles, which was sold in Nov 2018, as well as from Banyan Tree Phuket due to ongoing renovations.
Overall forward bookings in this segment however grew to 11% above the same period last year, mainly due to hotels outside of Thailand.
The Property Sales segment also saw lower revenue compared to that of a year ago, as Cassia Phuket and Cassian Bintan were substantially completed and recognised in 1Q18. It booked deposits for 86 units with a total sales value of $44.4 million for the latest quartered, compared to 99 units worth $56.4 million a year ago.
As at end-March, Banyan Tree says it has unrecognised revenue of $222.1 million compared to $209.8 million a year ago, adding that about 40% will be progressively recognised in the next few quarters of FY19.
Cash and cash equivalents stood at $200.8 million as opposed to $158.9 million in the previous year.
Citing data from the International Monetary Fund’s (IMF) April 2019 World Economic Outlook Update report, the group expects global growth to pick up in 2H19 for its key markets in China and Europe after moderating in 1H.
Shares in Banyan Tree closed 0.92% lower at 54 cents on Wednesday.
