Banyan Tree made net loss of S$9.2m in second quarter of the year

Mainboard-listed luxury resorts operator Banyan Tree says it has sunk deeper in the red.

It made a net loss of S$9.2 million in the second quarter this year, wider than the S$4.2 million loss incurred in the year-ago period.

Banyan Tree said this was mainly due to the adverse impact of anti-government riots in Bangkok in April and May this year.

It added that this was further compounded by the Iceland volcanic ash cloud, which disrupted air travel.

Further, it said the FIFA World Cup is a traditional low season for the firm.

Banyan Tree also saw higher operating costs following the cessation of several cost cutting measures implemented last year.

Its total costs and expenses rose 17 per cent on-year to S$60.6 million.

Revenue was stable, rising two per cent to S$60.7 million for the three months ended in June.

Barring unforeseen circumstances and further impact of the Thai political situation, Banyan Tree expects the current third quarter to be better than the previous three months.

But it warns that conditions remain challenging, though it is hopeful of a strong period in the 4th quarter, which is its traditional high season of the year.

The firm added that it has received favourable response to its recently completed road show to promote its Banyan Tree China Hospitality Fund.

It anticipates a first close of the Fund in September with a Fund size of about 1 billion yuan or some US$150 million.

Source : Channel NewsAsia – 13 Aug 2010

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