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Banyan Tree Q3 loss deepens to S$9.4m; CFO steps down to head new Phuket unit

Poolvilla-BYT.jpg
Pool villa at Banyan Tree Ungasan, Bali. The resort operator's loss per share stood at 1.12 Singapore cents for the third quarter.

RESORT operator Banyan Tree Holdings sank further into the red with a net loss of S$9.4 million for its third quarter ended Sept 30, compared to a S$7 million loss a year ago.

Its bottom line was weighed down by lower operating profit from the hotel investments and property sales segments, higher head office expenses, as well as higher depreciation of property, plant and equipment and right-of-use assets, said the mainboard-listed operator and developer of resorts, hotels, residences and spas.

Loss per share stood at 1.12 Singapore cents for the quarter, versus loss per share of 0.83 cent for the year-ago period, Banyan Tree said in a bourse filing late on Wednesday night.

Revenue shrank 20 per cent on the year to S$55.4 million for Q3, from S$69.7 million.

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This came amid lower revenue recognition from the property sales segment due to timing difference, as achieved sales of Cassia Phuket, Laguna Park townhomes/villas and Banyan Tree 3 Beds Pool Villas are expected to be recognised only in Q4 when construction is completed, the company said.

The drop in revenue for the quarter was also due to lower contribution from the hotel investments segment, as a result of non-consolidation of revenue from Banyan Tree Seychelles after its sale in 2018.

No dividend was declared for the quarter, unchanged from a year ago.

In a separate filing, Banyan Tree also announced that its chief financial officer (CFO), Kuan Chiet, has left the position to return to the group’s largest operation situated in Phuket, Thailand.

Mr Kuan, 53, will helm a new property leasing unit as part of the company’s business growth, mainboard-listed Banyan Tree said in a filing late on Wednesday night. He has been with the group since 1992 in various roles.

Appointed as CFO a year ago, he reported to president and group managing director Eddy See.

Mr See had concurrently held the position of CFO before Mr Kuan assumed the role last November. Upon Mr Kuan’s cessation, Mr See will continue to oversee Banyan Tree’s human resource, risk management, legal and internal audit functions.

Meanwhile, Shelly Yeo, vice-president of corporate finance and company secretary, will step up and oversee the overall group corporate finance and corporate secretariat functions. She will report to Mr See.

Shares of Banyan Tree were down 0.5 Singapore cent or 1.2 per cent at 42 cents as at 9.21am on Thursday, after the announcements were made.