Banyan Tree reported on Monday that its second quarter net loss narrowed to S$5.64 million from S$13.90 million in the year-earlier period amid higher property sales, which were offset by lower hotel revenue, higher finance costs and a share in the losses of associates/joint ventures.
Revenue for the quarter ended 30 June fell 2 percent on-year to S$68.40 million as it stopped consolidating the revenue of its China operations, it said in a filing to SGX after the market close on Monday. It said it instead received license fees from the execution of a joint venture with China Vanke for its branded assets in China.
Excluding the China operations, revenue for the quarter would have increased by S$7.6 million on-year to S$67.3 million, it said.
The property sales segment revenue rose 32 percent on-year in the quarter to S$15.1 million, amid a higher selling price for units recognized in the quarter, it said.
The hotel investments segment revenue fell 8 percent on-year to S$38.8 million in the quarter, mainly on lower Maldives and Thailand revenue and the deconsolidation of China, partially offset by higher revenue from the Seychelles and Indonesia, it said. Maldives revenue declined amid fewer tourist arrivals, especially from the Chinese market, following a state of emergency in the Maldives in the first quarter, it said.
In Thailand, hotel revenue declined amid lower MICE and events business during the traditional low season, it said.
Salaries and related expenses fell 19 percent on-year in the quarter to S$20.7 million, while finance costs rose 12 percent on-year to S$8.01 million, it said. Banyan Tree reported a share of loss of associates of S$1.20 million, swinging from a year earlier share of profit of associates of S$205,000.
For the first half, Banyan Tree swung to a net profit of S$15.82 million from a year-earlier loss of S$11.1 million, while revenue increased 4 percent on-year to S$166.59 million, it said.