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Financial losses push Danubius Hotels in red

Hungarian hotels group Danubius Hotels posted HUF 2.29 billion (€7.72 million) in pre-tax losses in the fourth quarter of 2008, to a large part due to financial losses, the company said in its unaudited consolidated IRFS report on the website of the Budapest Stock Exchange.

Fourth-quarter pre-tax losses rose 58% from a year earlier as financial losses rose more than five-fold to HUF 2.15 billion. Foreign exchange losses, most of them unrealized, totaled HUF 1.6 billion in the quarter. Operating losses dropped 82% yr/yr to HUF 169 million in the fourth quarter.

For the full year of 208, Danubius had pre-tax losses of HUF 197 million, compared to HUF 1.77 billion pre-tax profits in 2007, as operating profit fell 53% to HUF 1.37 billion and financial losses rose 39% to HUF 1.49 billion last year.

The company noted that HUF 1.81 billion in interest payments represented its largest financial loss last year.

The company posted EBITDA of HUF 6 billion in 2008, down 21% from 2007. Q4 EBITDA rose, however, sharply, to HUF 1.03 billion from 307m a year earlier.

Revenue rose 1% yr/yr in Q4 to HUF 1% to HUF 11.27 billion, and was full-year revenue was unchanged at HUF 47.17 billion.

Danubius Group revenue from hotels declined 2% to HUF 21.81 billion in 2008. Catering revenues were unchanged at HUF 15 billion and revenue from spa services rose 5% to HUF 6.2 billion.

The group's hotels in Hungary sustained pre-tax losses of HUF 1.74 billion in 2008, double that recorded the previous year.

The group's hotels in the Czech Republic posted pre-tax profit of HUF 857 million last year, up 22% yr/yr. Danubius' hotels in Slovakia posted pre-tax profit of HUF 264 million in 2008, compared to losses of HUF 290 million in 2007, and its hotels Romania recorded pre-tax profit of HUF 417 million last year, up 13% yr/yr.

Danubius spent HUF 5.48 billion on developments last year, 50% more than in 2007.

Net assets rose 3% in twelve months to HUF 52.74 billion at the end of 2008. (MTI – Econews)