Danubius Hotels says nine-month profit dropped on exchange rate

In Hungary

Danubius Hotels the owner of the Hilton in Budapest's castle district and the city's Gellért Spa, said nine-month earnings declined as the forint weakened versus the euro, making the hotelier's loans more costly.

Pretax profit fell 1% to Ft 2.47 billion ($12.2 million) from Ft 2.50 billion a year earlier, Budapest-based Danubius Hotels Nyrt said in a statement to the stock exchange today. Danubius is eastern Europe's second-largest hotelier by market value behind Poland's Orbis SA, with units in the Czech Republic, Romania, Slovakia and London. The company said that while a weaker forint pushed revenue higher, it hurt profit. The euro has risen 3.5% against the forint in the past year. The company lost Ft 2.1 on interest and the exchange rate compared with Ft 934 a year ago. Sales for the period were Ft 37 billion, up 13% from Ft 32.6 billion a year ago, the statement showed. Shares of Danubius have risen 6.6% this year, valuing the company at Ft 51.6 billion. They were up 1.6% to 6,230 forint at 1:04 p.m. in Budapest. (Bloomberg)

ADVERTISEMENT

17% of homeowners plan renovations this year Analysis

17% of homeowners plan renovations this year

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.