Sri Lankaâ€™s Jetwing Symphony June losses grow with Easter Sunday hit
Tuesday August 13, 2019 16:58
ECONOMYNEXT- Sri Lanka’s Jetwing Symphony said that its net losses for the June 2019 quarter grew 4.1 percent to 161.6 million rupees from a year earlier, as the tourism industry was hit by the Easter Sunday attack.
The firm, which is a holding company for the Jetwing Group’s new hotels, in its interim financials said that the loss per share for the June quarter was 32 cents. The firm’s share closed trading 1 rupee higher at 12 rupees on Tuesday.
Jetwing Symphony’s revenue for the June quarter fell 3 percent to 289 million rupees from a year earlier, while cost of sales were flat at 51.1 million rupees, leading to gross profits falling 4 percent to 232.1 million rupees.
Sri Lanka’s tourism arrivals for May fell 71 percent from a year earlier due to the Easter attack, but recovered to a 57.4 percent fall in June and a 45 percent fall in July.
The Easter Sunday attack took place in the off-peak season which started in April and runs to June, and then from September to October, until the peak winter season which runs from November to March.
“We are seeing a monthly pick up, and we are hopeful that we will be in a better position during the winter months, our traditional peak season,” Chairman Hiran Cooray told shareholders in an earnings release.
He described the period as the “most difficult quarter since Jetwing Symphony’s inception”.
The firm, which has made losses to date was expecting to post profits in the 2020 financial year, as its new hotels matured.
Finance expenses for the quarter grew 9 percent to 116 million rupees.
Long term loans grew to 2.6 billion rupees at the end of the June quarter from 2.2 billion rupees from the start of the current financial year three months earlier.
Short-term borrowings fell to 1.7 billion rupees from 2 billion rupees during the three months. (Colombo/13 Aug/2019)