Fewer Chinese tourists affect CENTEL’s hotel arm
Central Plaza Hotel Public Company Limited (CENTEL) has reported a softening of its hotel business in the second quarter of 2019, mainly due to the lower number of Chinese tourists visiting Thailand, while its Food Business revenues increased 5.7 per cent year on year amidst intense business competition and an overall economic slowdown.
Revenues for the period were reported at Bt5.225 billion, a similar level to the same period last year. Meanwhile, the company's EBITDA was Bt906.7 million, a decrease of 9.6 per cent year on year. The company achieved net profit from operation of Bt290.5 million, a decrease of Bt81.2 million, or 21.8 per cent year on year. However, the company had net profit of Bt232.4 million, a decrease of 37.5 per cent year on year due to the provision for long-term employee benefits obligations of Bt58.1 million.
Total hotel business revenue was Bt2 billion, a decrease of Bt138.7 million (or 6.5 per cent) year on year, due to the lower number of Chinese tourists, who make up an important group of tourists during the low season, coupled with the closure for major renovation of Centara Grand Beach Resort Samui on June 1. In addition, the operating results for the 5-star property in the Maldives softened compared to the same period last year. In Q2/2019, the company achieved EBITDA of Bt543.1 million (or 27.1 per cent of total hotel business revenue).
Total food business revenue was Bt3.224 billion, an increase of 5.7 per cent year on year, derived from a net increase of 99 QSR outlets. As such, total systems sales (TSS) growth was 5.7 per cent year on year; while same stores sales (SSS) growth decreased by 1.8 per cent year on year - but improved from the previous quarter, especially for Mister Donut and Auntie Anne’s. Nevertheless, the offering of value promotion campaigns to drive sales and the increases in fixed costs such as labour costs resulted in the lower profit margin. Rhe Company achieved EBITDA of Bt363.6 million (or 11.3 per cent of total food business revenue) in the second quarter.
For the first six months of this year, the company achieved total revenues of Bt10.868 billion, a similar level to the same period last year, and total EBITDA of Bt2.404.3 billion, a decrease of 9.9 per cent year on year, as a result of the operating performance for both hotel and food businesses. Net profit from operation was Bt1.035 billion, a decrease of 17.5 per cent year on year. The company recognised provision for long-term employee benefits obligations of Bt58.1 million as well as an insurance claims payment for damages to its property of Bt80.6 million (net of taxes). Thus, this resulted in net profit of Bt1.058 billion, a decrease of 15.7 per cent compared to the same period last year.
