Hungary's Danubius lifts Q2 earnings 43%

Tourism

Hungarian hotel operator Danubius posted a Ft 2.374 billion ($14.91 million) net profit in the second quarter, a 43% rise, it said on Thursday.

Danubius said consolidated operating profit fell 53% to Ft 897 million, but a financial profit of Ft 1.523 billion after Ft 203 million forint financial loss in the same quarter of 2007 improved the bottom line.

Net sales for the group which operates in Hungary, the Czech Republic, Romania and Slovakia, fell one percent year-on-year to Ft 12.852 billion in the second quarter.

“The euro/forint cross had no significant impact on second-quarter sales relative to the second quarter of 2007, but the strong forint is expected to affect third-quarter sales significantly,” the company said.

A firming of currencies in the region including the Czech crown and the Slovakian crown helped financial results as the revaluation of assets and liabilities led to a profit of Ft 1.854 billion in the second quarter.

Revenues from hotel rooms in Hungary, the main market of Danubius, dropped by 5% to Ft 4.3 billion as less guests arrived, Danubius said.

Domestic material costs increased by 14% to Ft 1.64 billion due to high inflation in Hungary, the company said. (Reuters)

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