MINT Books a Net Loss of ฿1.7Bn in 1Q after COVID-19 Outbreak Halts NH Hotel Operations
MINT Books a Net Loss of ฿1.7Bn in 1Q after the COVID-19 Outbreak Halts NH Hotel Operations.
MINT Books a Net Loss of ฿1.7Bn in 1Q after the COVID-19 Outbreak Halts NH Hotel Operations.
18 พ.ค. 2563

Minor International Public Company Limited (MINT) has reported its consolidated financial statement through the Stock Exchange of Thailand as follows;

MINT reported a net loss of 1,773 million baht in the first quarter of 2020, compared to a net profit of 583 million baht in 1Q19.
MINT reported 1Q20 core revenue of 22,421 million baht, decreased by 22% YoY. This was attributable to adverse impact from COVID-19 outbreak on all three business units, most notably the challenging environment of Minor Hotels globally and Minor Food in China.
In order to compare the performance on a like-for-like basis, core EBITDA excluding TFRS 16 regarding leases dipped into net loss of 111million baht in 1Q20 from core EBITDA of 4,272 million baht in 1Q19.
The EBITDA declined at a faster rate than revenue as the decline in revenue from the impact of the pandemic was severe and sudden while costs did not fall as fast, resulting in compounding effect from negative flow-through.
Particularly, the majority of EBITDA net loss was from NH Hotel Group which structurally has high fixed leases, and therefore lower profitability than MINT in general while Minor Hotels still recorded positive EBITDA. Including the impact of TFRS 16, with forgone rental expenses, core EBITDA was 2,982million baht in 1Q20, falling by 30% y-y from 1Q19 level.
 
In 1Q20, core revenue from hotel and related services operations declined by 24%, compared to the same period last year. Despite the strong operations of NH Hotel Group up until February and hotels in the Maldives in January, a decrease in core revenue YoY in the quarter was mainly attributable to the challenging operating conditions of all key markets due to travel disruptions across regions especially in March from COVID-19 impact. Meanwhile, Q20 management income also posted a decline of 34% YoY, primarily from decreasing organic RevPar of managed hotels in all markets, as well as, the exit of some hotel management contracts.
 
In the first quarter of 2020, NH Hotel Group SA, Minor International PLC (MINT)’s subsidiary, has reported its 1Q20 earnings with a total net loss of 57 million euro mainly due to the plummet in March after temporarily closing business to contain the coronavirus outbreak.
The group, an multinational hotel company headquartered in Madrid, that operates over 350 hotels in 28 countries, reported a net loss of 57 million euro in the first quarter of 2020, 42 million euro lower than the first quarter of 2019.
Revenue dropped by 20.8%, reaching 279 million euro in the first quarter. However, in the first two months of the year, revenue grew by 8.0% while in March the reduction was 65.8%.
RevPAR dropped by 27.1% in the first quarter, fully explained by a lower occupancy rate that fell by 29.7% to 46.3% affected by the COVID-19 impact since March.