Sri Lanka Aitken Spence Hotels makes loss in Sept quarter

Friday, 7 November 2008 20:33

Sri Lanka's Aitken Spence Hotels reported a net loss of 45 million rupees in the September quarter compared with a profit of 19 million rupees a year ago owing to the downturn in tourism.

Revenue for the quarter rose nine percent to nearly 1.5 billion rupees, according to a company statement.

The quarterly loss increased the net loss in the first half ending September 30, 2008 to 93 million rupees compared with a net profit of 10 million in the same period last year.

Analysts said the results announced by the company were before preference dividends which totalled 15 million.

They said the hotel company's losses at its Sri Lanka resorts had widened in both the September quarter as well as in the first half of the financial year.

'Other income' attributed to Sri Lanka had however increased, most probably reflecting increased management fees from foreign hotels, analysts said.

Aitken Spence Hotels is one of the biggest hotel operators in Sri Lanka and the Maldives and is trying to spread its operations further a field to reduce dependence on the island.

The group also operates hotels in India, having contracted to manage eight properties in India and has also got contracts to manage four properties in Oman.

Analysts said Aitken Spence Hotels profit before tax from its South Asian sector had fallen sharply in the September quarter, down 76 percent to 28 million from a year ago.

They said this was the lowest quarterly pre-tax profit from the group's South Asian sector since the September 2006 quarter when a serious downturn in tourism after a devastating tsunami hit profitability in 2005.

Source: www.lankabusinessonline.com

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