BUDAPEST: An earnings report published late Friday shows that the Hungaryʼs Danubius Hotelsʼ first-quarter loss narrowed to HUF 980 million from the HUF 2.6 billion loss recorded in the same period a year earlier, on the back of mostly unrealized foreign currency gains,.
Revenue rose 2% to HUF 9.3 bln, but cost of materials and services outpaced the increase, climbing 3% to HUF 4.8 bln. In spite of a 1% drop in payroll costs to HUF 4.3 bln, Danubius had a HUF 1.7 bln loss at operating level, practically level with the loss in Q1 2014.
The impact of the bottom line was cushioned by a HUF 733 mln FX gain, compared to a HUF 648 mln loss in the base period. Danubius said revenue in Hungary was practically flat at HUF 5 bln. The segmentʼs operating loss narrowed to HUF 1.2 bln from HUF 1.3 bln. Revenue at Danubius hotels in Czech Republic fell 11% as room rates were cut to accommodate domestic and German guests, who replaced more profitable Russian guests. The segment booked a small operating loss, as well.
