Banyan Tree profit up to S$0.6m

This is a rebound from the S$7 million loss in the second quarter of 2011.

Mr Ho KwonPing, Executive Chairman of Banyan Tree Holdings Limited said, “We are pleased to record a net profit of S$0.6 million in 2Q12, the first profit in this low season period last seen in 2008 as a result of various global economic crisis and political crisis in Thailand.”

He said EBITDA more than tripled last year to S$12.8 million due to improved performance of hotel and property segments in Thailand. “The increase was also boosted by the recent acquisition of Banyan Tree Seychelles, part of our ongoing strategy of rebalancing our asset portfolio.”

Banyan Tree reported that in 2Q12, the Group registered revenue of S$79.3 million, an increase of S$15.7 million or 25% compared to the same period last year. This was mainly attributable to higher revenue from Property Sales and Hotel Investments segments. EBITDA of S$12.8 million in 2Q12 increased by S$9.2 million or 258% compared to 2Q11, mainly due to higher revenue but partially offset by lower other income as other income in 2Q11 included gain on sale of Laguna Beach Resort.

Meanwhile Hotel Investments segment achieved revenue of S$39.3 million in 2Q12, an increase of 20% or S$6.4 million compared to S$32.9 million in 2Q11. Second quarter is a lower season period of the year. Higher revenue was mainly from Seychelles (S$4.4 million), Thailand (S$3.1 million) and China (S$0.7 million) but partially offset by lower revenue from Maldives (S$1.9 million).

Property Sales segment revenue, on the other hand, increased by S$9.0 million or 136% from S$6.6 million in 2Q11 to S$15.6 million in 2Q12 mainly due to higher revenue recognition from property sales units. In 2Q12, revenue recognition was for a total of 13 units comprising of Lofts, Laguna Village villas/townhomes/bungalows, Banyan Tree Phuket pool villa, Banyan Tree Lijiang villa and Banyan Tree Bangkok suite, as compared to only 2 units of Laguna Village townhomes recognized in the same period last year.