SINGAPORE – Banyan Tree Holdings Limited has reported a fourth quarter result which shows a 79 percent decrease in operating profit to S$10.9 million due to political turmoil in Thailand and slow down in world economy.
Operating profit for the full year 2008 was 23 percent below last year at S$93.8 million, thanks to a solid first half year for the group.
Ho KwonPing, executive chairman of Banyan Tree said, “The political turmoil in Thailand which led to a week-long closure of Bangkok’s Suvarnabhumi International Airport and left more than 300,000 tourists stranded in November has significantly affected our hotel operation and property sales in Thailand in the fourth quarter.
“We are bracing for a tough year in 2009 given the continuing political crisis in Thailand and the world economic slowdown and deterioration of the global financial situation.â€
He said Banyan Tree group had embarked on cost-cutting measures for all its operations and would defer where necessary projects that had yet to commence and would minimise capital expenditure.
The group’s overall cash and cash equivalents decreased by 54 percent to S$53.7 million mainly due to various investments, construction and renovation projects and repayment of bank loans during the period.
