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Sri Lanka's Jetwing Symphony records revenue growth of 37% to Rs. 484 mn in the quarter ended 31 Dec

Sri Lanka's Jetwing Symphony Group, a hotel owner and operator recorded revenue growth of 37% to Rs. 484 million for the quarter ended 31 December 2018 (Q3FY19) from the last corresponding quarter (Q3FY18).
 
The top contributors were Jetwing Yala, Jetwing Colombo Seven and Jetwing Lake, making up over 90% of the Group revenue. Increased ARR and overall occupancy were key drivers of this growth.
 
Revenue for the 9-months ended was Rs. 1,303 million which was a 30% increase from 31 December 2017.
 
The Group gross profit margin increased to 84%, from 82% for Q3FY19 whilst recording a gross profit of Rs. 404 million - a 40% increase from the previous corresponding quarter. All properties operated with gross profit margins above 75%, driven by proper management of resources.
All Jetwing Symphony Hotels, with the exception of Jetwing Surf, recorded positive EBITDA and EBIT figures. The Group recorded an EBITDA of Rs. 163 million and an EBIT of 82 million for Q3FY19 which translated to a 2 times and a 36 times improvement, respectively, from the previous corresponding quarter.
 
Off-season in Arugam Bay resulted in reduced occupation during the quarter under consideration which, combined with high fixed costs, resulted in poor EBIT and EBITDA performance for Jetwing Surf.
 
The Group recorded a loss of Rs. 32 million, on a recurring basis (profit/loss excluding forex gains/losses), for the quarter ended 31 December 2018 - a 69% QoQ improvement; and a loss of Rs. 170 million for the 9-months then ended, which was a 50% improvement.
 
The Rupee depreciated by c.7.9% against the USD during the quarter, further affecting the Group's bottom line; which ended with a loss of Rs. 131 million (22% drop, QoQ) and a loss of Rs. 370 million for the 9-months then ended, a 7% reduction from the last corresponding period.
 
The operational hotels are positioned as premium - with all Jetwing properties recording significantly higher ARRs than the corresponding quarter. Jetwing Kaduruketha saw a c.83% increase in the ARR as the hotel is consolidating on its luxury eco-resort status. 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. 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, Symphony's latest addition, is currently underway with about 80% of the overall sub-structure and 30% of the superstructure work completed.
 
Expansion of Jetwing Symphony's operating hotel portfolio is in line with Symphony's philosophy of maximizing shareholder returns by pursuing strategic investment opportunities, Chairman of Jetwing Symphony Hiran Cooray said.

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