Tsokkos profits up 59%

A. Tsokkos Hotels Pcl released a strong set of 9M06 results posting a 59.2% YoY increase in net profit to CYP 4.45 mln or EUR 7.72 mln. EPS was at 1.85 cent vs. 1.14 cent in 9M05. The boost in TSH’s bottom line is attributed to the write-off of negative goodwill from the acquisition of DOME Investments Pcl amounting CYP 1.35 mln. Adjusted Net Profit comes to CYP 2.56 mln vs CYP 1.94 mln in 9M05 according to Egnatia Financial Services.

Total revenue increased by 4.4% YoY to CYP 16.09 mln or EUR 27.9 mln,

compared to CYP 15.41 mln recorded in 9M05. This is mainly attributed to additional revenue from TSH’s recent hotel acquisitions (+4.4% YoY to CYP 16.09 mln).

In addition to strong growth in revenues, TSH’s profitability improvement is attributed to cost containment efforts, as both cost of sales and managerial expenses came in slightly lower than 9M05 (-0.86% YoY). This resulted to a 370 bps improvement on EBIT margin, noted Egnatia.

Besides the positive operating performance of TSH we note the positive impact stemming from the write off of negative goodwill associated with the acquisition of DOME Hotel (+CYP 1.35m) and a gain of c. CYP 120.000 from sale of own shares.

In another development the Company’s BoD will convene on 11 December 2006 to examine the possibility of a dividend payment to its shareholders.