ECONOMYNEXT - Losses at Sri Lanka's listed John Keells Hotels expanded 14 percent from a year earlier to 263.5 million rupees on falling revenues at resorts managed by the group in the island and The Maldives, interim accounts showed.
The hotels company reported a loss of 18 cents a share in the quarter, interim accounts filed with the Colombo Stock Exchange showed. The share closed 20 cents higher on Friday at 8.50 rupees.
Revenue fell 11 percent to 2.1 billion rupees in the quarter, and cost of sales fell 11 percent to 814.9 million rupees, leading to a 11 percent contraction in gross profits to 1.3 billion rupees.
Revenue from Sri Lankan resorts fell 8.5 percent to 1 billion rupees despite improving occupancy rates, and losses fell 74 percent to 59.4 million rupees.
"The Sri Lankan Resorts segment recorded an improvement in occupancies despite the increased competition within the sector," Chairman of the parent company John Keells Holdings said in a statement in the group's financial report for the June 2018 quarter.
Revenues from Maldives fell 12.6 percent to 1.1 billion rupees, and losses ballooned to 204 million rupees, compared to a 2.2 million loss a year earlier.
"The Maldivian Resorts segment recorded an improvement in average room rates, although profitability was impacted by lower occupancies and the partial closure of Ellaidhoo Maldives by Cinnamon for refurbishment,
"However, occupancies at our hotels in the Maldives remained above the industry average during the quarter under review," he said.
In the June quarter, administrative expenses fell 17 percent to 1.1 billion rupees and distribution expenses decreased 14 percent to 67.5 million rupees.
Other operating expenses rose 43 percent to 430.3 million rupees including a one-off impairment loss of financial assets of 154 million rupees due to the closure of Cinnamon Hakuraa Huraa for refurbishment.
Another property Ellaidhoo Maldives by Cinnamon is partially closed for refurbishment until next September.
Net finance expenses grew 43 percent to 11.3 million rupees.
Tax expenses rose 515 percent to 27.4 million rupees, due to a 6.6 million tax reversal a year earlier.
John Keells Hotels said it was refurbishing Bentota Beach Hotel in Sri Lanka with costs estimated at 3 billion rupees, as well as The Nuwara Eliya Hotel estimated at 3.7 billion rupees.
The capital requirement to refurbish the two Maldivian properties is estimated at 12.1 million US dollars (nearly 2 billion rupees).
In the quarter John Keells Hotels increased its shareholding in Ceylon Holiday Resorts Ltd from 99.09 percent to 99.31 percent with an investment of 817 million rupees by subscribing to a rights issue.
The hotels company reported a loss of 18 cents a share in the quarter, interim accounts filed with the Colombo Stock Exchange showed. The share closed 20 cents higher on Friday at 8.50 rupees.
Revenue fell 11 percent to 2.1 billion rupees in the quarter, and cost of sales fell 11 percent to 814.9 million rupees, leading to a 11 percent contraction in gross profits to 1.3 billion rupees.
Revenue from Sri Lankan resorts fell 8.5 percent to 1 billion rupees despite improving occupancy rates, and losses fell 74 percent to 59.4 million rupees.
"The Sri Lankan Resorts segment recorded an improvement in occupancies despite the increased competition within the sector," Chairman of the parent company John Keells Holdings said in a statement in the group's financial report for the June 2018 quarter.
Revenues from Maldives fell 12.6 percent to 1.1 billion rupees, and losses ballooned to 204 million rupees, compared to a 2.2 million loss a year earlier.
"The Maldivian Resorts segment recorded an improvement in average room rates, although profitability was impacted by lower occupancies and the partial closure of Ellaidhoo Maldives by Cinnamon for refurbishment,
"However, occupancies at our hotels in the Maldives remained above the industry average during the quarter under review," he said.
In the June quarter, administrative expenses fell 17 percent to 1.1 billion rupees and distribution expenses decreased 14 percent to 67.5 million rupees.
Other operating expenses rose 43 percent to 430.3 million rupees including a one-off impairment loss of financial assets of 154 million rupees due to the closure of Cinnamon Hakuraa Huraa for refurbishment.
Another property Ellaidhoo Maldives by Cinnamon is partially closed for refurbishment until next September.
Net finance expenses grew 43 percent to 11.3 million rupees.
Tax expenses rose 515 percent to 27.4 million rupees, due to a 6.6 million tax reversal a year earlier.
John Keells Hotels said it was refurbishing Bentota Beach Hotel in Sri Lanka with costs estimated at 3 billion rupees, as well as The Nuwara Eliya Hotel estimated at 3.7 billion rupees.
The capital requirement to refurbish the two Maldivian properties is estimated at 12.1 million US dollars (nearly 2 billion rupees).
In the quarter John Keells Hotels increased its shareholding in Ceylon Holiday Resorts Ltd from 99.09 percent to 99.31 percent with an investment of 817 million rupees by subscribing to a rights issue.
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