Sri Lanka’s Jetwing Symphony Hotels hit by forex loss
ECONOMYNEXT – Sri Lanka’s Jetwing Symphony Plc reported a loss of 128.5 million rupees in the December 2018 quarter, up 20 percent from a year earlier, on a forex losses, though revenues grew.
The firm reported a loss of 26 cents per share for the quarter. In the nine months to December, the group reported a loss of 73 cents per share on total losses of 369 million rupees, up from 338 million rupees a year earlier.
In 2018, the rupee fell from 153 to 182 to the US dollar amid contradictory monetary and exchange rate policy. In the quarter, the rupee had fallen 7.9 percent.
In the peak December quarter, revenues grew 37 percent to 484 million rupees, and cost of sales grew 23 percent to 79.6 million rupees, helping gross profits grow 40 percent to 404 million rupees.
But forex losses grew to 98 million rupees from 2.5 million rupees, on a foreign exchange loan.
A political crisis had also hurt online bookings.
"Jetwing Colombo Seven and Jetwing Kaduruketha reported slight drops in their overall occupancy rates, due to a reduction in the number of online travel agency bookings and free independent tourist bookings,as a result of the political situation which prevailed in the country during the quarter," Jetwing Chairman Hiran Cooray told shareholders.
"However, the overall occupancy rates of the other properties saw a significant increase which is testament to the popularity of your Group’s hotels."
Construction of Jetwing Kandy Gallery is progressing with 80 percent of the sub-structure and 30 percent of the super structure completed, he said. (Colombo/Feb13/2019-SB)