Financial statement – 2nd quarter 2017
LUX* records increase in turnover and operating profits
LUX* is keeping the momentum, as witnessed by the increase in its operating profits for the quarter ended December 31, which rose by 7% from Rs420 million to reach Rs452 million. For the second half of 2017, the operating profits increased by 11%, to Rs427 million. Total turnover for the quarter in review was Rs1.8 billion, an increase of 6% compared to the corresponding quarter in 2016. The EBITDA (earnings before interest, taxes, depreciation and amortisation) reached Rs583 million, indicating an increase of 9% over the quarter in review. During the second half of 2017, the group’s turnover increased by 11%, reaching Rs2.8 billion, while the EBITDA gained 12% to Rs683 million.
The buyer of the Le Récif hotel in Reunion Island having been unable to fulfil his obligations, the Group has taken over the activities as well as the assets of the hotel as from the 1st of October 2017. This takeover has resulted in a Rs74 million profit.
The Group’s hotels in Mauritius which were fully operational during the second half of 2017 show an occupancy rate of 89%, a 2-points increase compared to the corresponding period in 2016. The average daily rate (ADR – the average rental income per occupied room) has registered an 18% increase. The increase in occupancy rate and the ADR has resulted in a 20% gain for the Rev PAR (income per available room).
LUX* Saint Gilles in Reunion Island recorded an occupancy rate of 5%, a 6-points increase compared to the previous year, with an equivalent ADR and an increased Rev PAR of 7%, while Le Récif hotel registered an occupancy rate of 76% for the quarter. The ADR< compared to the previous year, gained 6%. LUX* South Ari Atoll, in the Maldives, has had an outstanding performance with an occupancy rate of 75% for the quarter, a 9-points increase, and a comparable ADR to that recorded the previous year while the Rev PAR increased by 11%.
Tourist arrival in Mauritius for the quarter ended on 31st of December 2017 reached 407,181, a 3.3% increase compared to the corresponding period in 2016. Arrivals from Europe increased by 7%, with the United Kingdom and Germany showing a 17% and a 22% increase, respectively. Arrivals from France, our main source market, however dipped slightly, by 1%. Arrivals from Asia also went down, by 9%, most probably due to a significant decline of around 24% in tourists from China. This was in part mitigated by an increase in arrivals from India, the UAE and Saudi Arabia.
It is worthy to note that tourist arrivals have increased in all destinations where the Group has its activities, namely in Mauritius, which has recorded a continuous increase over the past five years. Moreover, Statistics Mauritius is estimating a 5.2% increase for calendar year 2017, bringing the total number of tourists having visited the country last year to 1.34 million.
“LUX* Grand Gaube has reopened on December 23, 2017 and, even though a few rooms are still unfinished, the hotel is lavish and we are confident that it will contribute positively to the group’s performance in the future. On the whole, we are confident that our development strategy will continue to bear its fruits and our performance during the third quarter will be comparable to those recorded last year,” says Paul Jones, CEO of LUX* Resorts and Hotels.