• 
• 

Published on October 3, 2007

Senior vice president Ronnachit Mahattanapruet said yesterday the company has recorded lower net profit in the second quarter due to the low season.

However, the forecast for the year is still higher than last year's revenue of Bt6.8 billion.

The company's food & beverage section generated 60 per cent of revenue and room occupancy 40 per cent.

"The company will try to maintain net profit this year at the same level as last year at around Bt417 million despite lower revenues. We want to keep up the dividend payment rate at last year's Bt1.5 per share in line with our policy to pay dividends up to 40 per cent of net profit," he said.

He said next year, the company's income is expected to grow by 9-10 per cent year on year, or around Bt8 billion.

The higher income is expected to come from Central World Hotel during the second quarter of next year. The earnings ratio between food & beverage and room occupancy will change to 55 per cent to 45 per cent.

Ronachit added that his company plans to issue bonds worth around Bt1.3 billion for debt payment as well as generate cash flow for future investment projects. On October 11, a coupon rate will be set with the subscription date four days later.

Central Plaza Hotel's debt-to-equity ratio will rise to 1.6 after the bond issue, from 1.4 in the second quarter this year.

"We need to see the result of the [Bank of Thailand] Monetary Policy Committee meeting on October 10 before we do the book building on October 11," Ronachit said.

The company plans to introduce new food brands in the fourth quarter this year, with an investment budget of around Bt10 million.

Siriporn Chanjindamanee

The Nation