Centel posts 43.5% rise in 4Q16 net profit despite challenges
Central Plaza Hotel (Centel) has announced a year-on-year 43.5-per-cent increase in net profit to Bt416 million for the fourth quarter of 2016, despite flat revenue growth and facing many challenges during the quarter.
The company posted total consolidated revenues of Bt4.9 billion for the fourth quarter, with an increase of EBITDA (earnings before interest, taxes, depreciation and amortisation) by 7.8 per cent year on year, totalling Bt1.10 billion, attributing this to effective cost management.
Centel chairman Suthikiati Chirathivat said the company’s overall operating performance for the quarter was better than expected, in spite of having to face many operational challenges.
The Centara Grand Resort in Phuket was damaged by the recent floods and was forced to close down for three weeks during November. The new regulations relating to “zero baht” tours from China together with the increased visa fees in October and November resulted in a decrease in the total number of tourists from China.
As well, there was the temporary ban on entertainment activities or any press and TV advertising and promotional campaigns for the initial 30-day mourning period for the late King.
However, Centel achieved total consolidated revenues of Bt4.985 billion, more or less equal to the same period of 2015. Net profit was Bt416.0 million, a year-on-year increase of 43.5 per cent attributed to effective cost management and also to lower interest costs resulting from funds being acquired from alternative sources that carried a lower interest rate than the existing loans.
“Further, for full-year 2016, consolidated revenues increased by 3.4 per cent year on year to total Bt19.86 billion, resulting from the continuing growth of both the food and hotel businesses,” Suthikiati said.
The associated EBITDA margin came in as targeted at 21.7 per cent of total revenues. He said this combined with the overall lower interest paid enabled the group to attain total net profit of Bt1.85 billion, an increase of 11.2 per cent year on year, as well as an EPS (earnings per share) of Bt1.37 for the full year.
“We will continue to increase shareholder value through increasing overall revenues from both organic growth and through business mergers and acquisitions,” he said.
