AMMAN: Lower earnings and profits during the first quarter (Q1) of this year took the shine off the rock-hard annual 2014 and 2013 financial results at Mediterranean Tourism Investment Company (METICO).
METICO, a public shareholding company that owns the Four Seasons Hotel in Amman, earned JD3.9 million during the first three months of this year, 7.1 per cent less than the JD4.2 million earned during the same period in 2014. The 193 rooms generated JD2.3 million of total earnings, with food and beverages bringing in JD1 million and “others” JD0.6 million.
Gross profit generated from the hotel’s operations amounted to JD1.1 million, compared to JD1.3 million. After taking into consideration administrative and general expenses, depreciation, other income and other expenses, the net profit after-tax came at JD0.4 million during January-March 2015, down from 0.5 million in the first quarter of the previous year. Based on the changes to the Income Tax Law effective from the start of 2015, the tax rate was adjusted to 20 per cent for the first quarter of this year from 14 per cent during the same period of last year.
The company’s income statement as of December 31, 2014, showed a JD19.3 million in overall earnings, 3.8 per cent higher than the JD18.6 million registered in 2013. According to notes accompanying the auditor’s financial statements, the earnings from hotel operations were derived mainly from rooms and food which amounted to JD10.1 million and JD5.3 million respectively.
