Danubius Hotels profit falls 35% in Q2
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.
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