Banyan Tree PATMI surged 36% in 1Q11

PATMI increased to $10 million due to the gain on divestment of a development site and lower depreciation.

According to Banyan Tree, the Group's overall cash and cash equivalents increased by 162% from $69.4 million in 1Q 2010 to $182.0 million in 1Q 2011. The increase in cash flow was largely due to net proceeds received from sale of Dusit in October 2010 and new notes issuance in March 2011.

The Group registered revenue of S$114.3 million in 1Q11, an increase of S$8.0 million (8%) compared to the same period last year. This was mainly attributable to higher revenue from Property Sales and Fee-based segments, but cushioned by lower revenue from Hotel Investments segment. Notwithstanding a higher revenue, EBITDA of S$32.5 million in 1Q11 was in line with the same period last year, largely due to one-off other income in 1Q10 pertaining to insurance proceeds from the Tsunami claim.

Fee-based segment revenue increased by S$3.6 million or 19% from S$19.6 million in 1Q10 to S$23.2 million in 1Q11 largely due to higher fund management fees, higher hotel management fees and higher revenue from spa / gallery operations.

Higher fund management fees were mainly due to the final close of China Fund in January 2011 with a total fund size of S$210 million. Higher hotel management fees and higher revenue from Spa and Gallery operations were due to contributions from new resorts in Banyan Tree Cabo Marques (opened in April 2010), Banyan Tree Club and Spa Seoul (opened in June 2010), and Banyan Tree Samui (opened in July 2010), coupled with spa/gallery products sales to upcoming new outlets at Marina Bay Sands and Banyan Tree Macau.

EBITDA increased by S$0.1 million from S$2.2 million in 1Q10 to S$2.3 million in 1Q11, mainly due to higher revenue, but partially offset by higher operating expenses such as sales and marketing expenses, legal and professional fees, and exchange loss.