CENTEL announces that overall consolidated revenues for Q3/2010 totaled Baht 2,153.8 million - an INCREASE of 9.6% YoY and 5.6% QoQ respectively. This is primarily due to the sustained and strong growth (18.2% YoY) of its Food Business, while its Hotels Business showed a slight decline of 0.9% YoY.
CENTEL's HOTELS BUSINESS : Compared to the previous quarter, its Average Occupancy Rate (AOC) improved satisfactorily - although still marginally lower than that for Q3/2009 (ie: Q3/2010 ‘s AOC was 53.2% vs 56.8% for Q3/2009). At the same time, its achieved Q3/2010 Average Room Rate (ARR) was Baht 2,834 (a slight decrease of 1.2% YOY compared to the ARR for Q3/2009).
Consolidated total Hotels Business revenue was Baht 882.1 million for Q3/2010 (equal to a decline of only 0.9% when compared to the same period last year). This primarily due to the poor performance results of the Centara Grand at Central World (which, while much improved after the sharp decline resulting from the political rally and riots during Q2/2010, has still to reach its normal level of full operations) coupled with the partial closure for major renovations of the Sofitel Centrara Grand, Ladprao. However, the performance results of the Centara Grand Mirage Beach Resort, Pattaya continue to be very positive.
Thus the overall Q3/2010 Hotels Business showed only a marginal change (decline)YoY. Also revenues from hotel management contracts showed a significant upward trend - increasing from Baht 11.4 million in Q23/2009 to a total of Baht 22.1 million for Q3/2010 - as a result of the Company's continued focus on growing its management services activities. Total EBITDA decreased slightly to a total of Baht 244.2 million because of pre-operating expenses relating to the new Phuket property. Further, the Hotels Business saw a further 20.5% QoQ decrease in Net Profit YoY; whereby this loss was as a result of the added depreciation & amortisation costs for new hotel properties that opened during this as well as late last year, and because of increased interests expenses.
As for CENTEL's FOOD BUSINESS : in Q3/2010 revenues totaled Baht 1,271.6 million - or an 18.2% INCREASE YoY - mostly resulting from new outlets network expansion coupled with sustained marketing & sales promotions campaigns; whereby Same Stores Sales (SSS) growth was 14.5% YoY (compared to a 6.6% YoY decline in Q3/2009) and Total Systems Sales (TSS) growth was 18.1% YoY (compared to only a 0.2% YoY growth in Q3/2009).However, if revenues for the Pizza Hut and Baskin Robbins brands are deducted, the Q3/20010 TSS growth would be 20.2% YoY.
Furthermore, this very positive performance for the Food Business was achieved through continued effective costs management, that has resulted in a total Q3/2010 EBITDA of Baht 198.8 million (or a 44.8% YOY INCREASE) as well as a 128.3% YOY INCREASE in total Q3/2010 NET PROFIT to Baht 82.0 million.
Thus, CENTEL's overall performance results for the 9 months YTD (Jan- Sept)/ 2010 period are as follows :
- Total Consolidated Revenues of Baht 6,719.5 million (an INCREASE of 9.9%YOY) - resulting from the very strong Hotels Business performance achieved during Q1/2010 as well as the sustained positive Food Business results during the year.
- Nevertheless, for the YTD 9 months period, there was an overall Net Loss of Baht 141.9 million - resulting mainly from the significant negative impact of the local political riots and unrest situation (causing safety concerns among the international tourists) as well as partly from the added depreciation & amortisation costs and increased interest expenses relating to the newly opened (late last year) Centara Grand Mirage Beach Resort, Pattya.
- However, Consolidated EBITDA stilled showed an INCREASE of 9.7% YoY, totaling Baht 1,112.2 million.
CENTEL is confident that the Hotels Business will revive significantly for the Q4/2010 period and will continue into Q1/2011. This is due to the facts that we are now entering into the traditionally ‘high tourist season' and the local unsettled political situation is much improved and more stable.
Also, because of the sustained positive GDP growth trend, consumer demand and private sector spending will also increase - which will enable continued positive growth for the Food Business sector on top of the already strong increases in consumer demand during the initial 9 months period of this year.
During the last quarter of 2010, CENTEL will continue its proactive marketing & sale promotions campaigns - for both the Hotels and Food Businesses, so as to facilitate sustained overall revenues growth. And CENTEL will also maintain its focus on its hotel management services activities, which will enhance CENTELs overall profitability for the future; whereby, the Company currently has already 20 hotels management contracts in place - both locally and in the overseas markets.
For more information, please contact
Khun Ronnachit Mahatanapruet, SVP, Finance & Administration.
THE CENTRAL PLAZA HOTEL plc.
Floor 25, 999/99 Rama 1 Rd., Patumwan, BANGKOK 10300.
Tel : (66) 02 769 1234 (ext 6131)
Fax : (66) 02 100 6231 E-mai: ronnachitma@chr.co.th
CENTEL'S CORPORATE PROFILE
CENTRAL PLAZA HOTEL plc. (CENTEL) was established in 1980 by the Chirativat family. As at Q3/2010, the Company operates 30 hotel properties - both in Thailand and overseas - together with over 500 QSR outlets for its Food Business. With its close cooperation with the ACCOR group, CENTEL is also able to have acess to a worldwide marketing network. At present, CENTEL operates its Hotels Business under the Centara Hotel & Resort and Centara brands together with other brands within the ACCOR hotels network.
It has hotels investments in the local market - ie: Bangkok, Pattaya, Chiangmai, Mae Sot, Phuket, Samui, Haadyai, Hua Hin, and Trad - and overseas in the Maldives. CENTEL also has hotel management services activities in India and Egypt.
Adiitionally, CENTEL is a pioneer in the Quick Service Restaurant (QSR) business sector in Thailand - currently operating both its own QSR brands (ie: The Terrace and Ryu) as well as international franchised QSR brands (ie: Mister Donut, KFC, Auntie Anne's, Pepper Lunch, Papa's Dough, Coldstone Creamery ice cream and Chabuton, with a total of 501 outlets located on Bangkok and throughout 56 provinces in Thailand.