Danubius Hotels profit falls 35% in Q2

Telco

Hungaryʼs Danubius Hotelsʼ second-quarter net profit fell by 35% to HUF 1.18 bln compared to HUF 1.83 bln in the same period a year earlier, an earnings report published late yesterday reveals, according to Hungarian news agency MTI.

Revenue rose 1% to HUF 14.76 bln, but cost of materials and services outpaced the increase, climbing 3% to HUF 5.84 bln.

With a 1% drop in payroll costs to HUF 3.32 bln, Danubius had a HUF 2.27 bln operating income compared to a HUF 12.36 bln operating income in Q2 2014.

Changes to foreign-currency exchange rates had a HUF 742 mln negative impact on Danubiusʼ performance, bringing net financial losses to HUF 907 mln compared to HUF 240 mln a year earlier.

Danubius said revenue in Hungary grew by 7% to HUF 8.81 bln. The segmentʼs operating income grew to HUF 1.45 bln from HUF 980 mln. Revenue at Danubius hotels in Czech Republic fell 15% and the segment booked operating income of HUF 387 mln, 47% lower compared to the base period.

Revenue in Slovakia was down 5% and operating income narrowed to HUF 379 mln from HUF 582 mln.

In Romania, revenue jumped 46% to HUF 540 mln due to higher fees charged for better quality rooms and better visitor numbers. Operating income was HUF 57 mln following a HUF 74 mln loss earlier.

In August, the biggest shareholders of Danubius concluded a successful buyout offer for its shares, bringing the combined share of CP Holdings to 98.2%.

CP Holdings will exercise its rights and make efforts to delist Danubius from the Budapest Stock Exchange, the report said.

ADVERTISEMENT

Varga puts 2021 GDP growth at 7-7.5% Analysis

Varga puts 2021 GDP growth at 7-7.5%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New managing director at the helm of Wolt Hungary Appointments

New managing director at the helm of Wolt Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

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.