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Financial losses weigh on Danubius Hotels bottom line

Danubius Hotels’ third-quarter net income plunged 82% to HUF 542m from the same period a year earlier, dragged down by a big financial loss, the company’s consolidated IFRS report published late Tuesday shows.

Revenue edged down 3% to HUF 13.78bn during the period. Operating costs fell at a faster rate, dropping 4% to HUF 11.07bn to lift operating profit 1% to HUF 2.71bn. But Danubius Hotels’ bottom line was hit hard by a HUF 2.02bn financial loss, compared to a HUF 483m gain in the base period. 

A bigger financial loss also put Danubius Hotels in the red in Q1-Q3. Revenue and operating costs were unchanged during the period at HUF 33.22bn and HUF 31.67bn, respectively. Operating profit was also flat at HUF 1.55bn. But the company’s financial loss increased to HUF 1.57bn from a HUF 970m loss in the base period. Danubius Hotels booked a HUF 212m loss for the period, compared to net income of HUF 314m in Q1-Q3 2010.

Danubius Hotels had total assets of HUF 91.61bn on September 30, up 2% from twelve months earlier. Net assets were unchanged at HUF 54.56bn.