Tsokkos Hotels reports loss in 9M08

A. Tsokkos Hotels Public Ltd (TSH.CY) reported its 9M 2008 results with revenue decreasing by 5% to EUR35.6mln due mainly to the decline in revenue from property development, while results deteriorated sharply.

Operating profit decreased 23.3% to EUR 7.8mln with EBIT margins squeezed at 22% from 27% in 9M 2007. At the bottom line level TSH recorded a loss of EUR 1.1mln compared to a profit of EUR 8.8mln in 9M 2007.

The loss attributable to shareholders is the result of increased finance costs due to increased Euro and Swiss franc interest rates, the unrealized loss of EUR 3.3mln compared to an unrealized  gain of EUR 1.1mln in 9M 2007 following the strengthening of the Swiss franc against the Euro since TSH has Swiss franc denominated loans, the loss of  investments of EUR 1.6mln compared to an investment related gain of EUR 911k in 9M 2007 and increased operating costs.

Management expects that operating results in 4Q 2008 will not deviate from those in 3Q 2008 since it is expected that tourist arrivals are less in the winter season compared to the summer season.