Aitken Spence Hotel 2Q net profit flat amid weak Maldives

Aitken Spence Hotel Holdings PLC, which is the second largest hotel operator in Sri Lanka, posted a net profit of Rs.210.21 million for the quarter ended September 2015 (2Q16), largely unchanged year-on-year (YoY), owing to a decline in its performance in the Maldives.

Earnings per share edged down to 62 cents from 61 cents YoY while revenue for the quarter fell to Rs.2.82 billion from Rs.2.9 billion YoY.

Total operating expenses fell marginally to Rs.2.4 billion from Rs.2.46 billion YoY.

There were no significant changes to the balance sheet, with the asset base rising slightly to Rs.32.88 billion from Rs.32.68 billion six months ago. 
Net profit for the first half of 2016 (1H16) fell to Rs.405.73 million from Rs.496.51 million YoY while revenue increased slightly to Rs.5.56 billion from Rs.5.55 billion YoY.

Profits before tax of the Sri Lankan hotels and resorts for the first half increased to Rs.152.33 million from Rs.147.92 million YoY while revenue increased to Rs.1.41 billion from Rs.1.35 billion YoY. 

The profit increase of 3 percent is despite tourist arrivals to Sri Lanka growing 22.07 percent YoY during the period.

Other profits in the Sri Lankan sector, representing third party management fees of hotels fell to Rs.142.93 million from Rs.171.66 million YoY.

Aitken Spence Hotel manages two hotels in Sri Lanka and five in Oman. The firm discontinued the management of its Indian hotels during the past financial year. 

Meanwhile, a new brand named Turya was created with the hotel purchased by Aitken Spence in Chennai last year and several other hotels which will be owned in India and Sri Lanka in the future are likely to fall under this brand. 

Profits before tax in the South Asian operations—mainly in the Maldives—fell to Rs.564.82 million from Rs.735.20 million YoY while revenue fell marginally to Rs.4.2 billion from Rs.4.21 billion YoY. 

The 23.18 percent profit drop in the Maldives bears similarity to the 24 percent drop of competitor John Keells Hotels PLC.
Aitken Spence owns and operates five resorts in the Maldives.