Shangri-La Hotels’ Q1 earnings down 26% on RM9.19m forex losses

PETALING JAYA: Shangri-La Hotels (Malaysia) Bhd's net profit slipped 26% to RM18.93 million for the first quarter ended March 31, 2016 against RM25.57 million in the previous corresponding period, due to unrealised net foreign exchange losses of RM9.19 million on the translation of US dollar loans to its associates in Myanmar.
Revenue, however, was up 12.11% from RM120.66 million to RM135.27 million.
In a filing with the stock exchange, the company said excluding forex translation effects, its net profit would have increased 34% underpinned by improved results from its resorts in Sabah and Penang, offsetting reduced contribution from Shangri-La Hotel Kuala Lumpur and Hotel Jen Penang.
Going forward, Shangri-La believes its hotel businesses are well-positioned to benefit from the ongoing positive momentum in leisure travel despite slower demand from the corporate market.