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Danubius Hotels Q4 losses narrow as financial losses fall

Hungary's Danubius Hotels booked a HUF 1.55 billion loss in the fourth quarter, improving over a HUF 2.29 billion loss in the same period a year earlier as financial losses declined, the company's consolidated IFRS report shows.

Danubius Hotels' revenue fell 17% to HUF 9.35 billion. But costs fell just 8% to HUF 10.55 billion. Material costs slipped 9% to HUF 4.86 billion and payroll costs dipped 9% to HUF 3.97 billion.

The company had a loss of HUF 1.21 billion at operating level, more than seven times the HUF 172 million loss in the same period a year earlier. But narrowing financial losses -- to HUF 345 million from HUF 2.15 billion -- helped the bottom line.

For the full year, Danubius Hotels reported a HUF 394 million loss, nearly double the HUF 200 million loss in the previous year.

Full-year revenue fell 7.7% to HUF 43.53 billion. Costs fell at nearly the same rate to HUF 43.39 billion.

Financial losses of HUF 1.53 billion were little changed from the previous year.

Danubius cut its capital expenditures to HUF 1.8 billion in 2009 from HUF 5.2 billion in 2008. Headcount was reduced to 4,876 from 5,338.

Danubius Hotels had total assets of HUF 86.76 billion on December 31, 2009, 4% less than twelve months earlier. Net assets were down 1% at HUF 50.08 billion.

The company has hotels in Hungary, the Czech Republic, Slovakia and Romania. (MTI – Econews)