SET-listed Dusit Thani Plc (DTC), one of Thailand's top hotel and property development companies, reported first-half revenue of 2.82 billion baht and a net profit of 231 million baht, up 8.8% and 632% year-on-year.
The main drivers of net profit growth included income from long-term investment and the share of profits from new investments.
In the first half of 2018, Dusit Thani's core operating results remained satisfactory, with net profit from operations rising 191% to 93 million baht.
Dusit Thani's results in the second quarter of 2018 included total revenue of 1.13 billion baht, up 3.9% year-on-year, and a net profit of 1 million baht, a significant improvement on a net loss of 92 million baht the year before.
Following continuous investment in renovations of several long-established Dusit hotels, and taking into consideration the redevelopment of the flagship Dusit Thani Bangkok, which will cease operations in its current form on Jan 5, 2019, to be rebuilt as part of a landmark mixed-use project, Dusit Thani's management forecasts stable revenue for the next few years.
Management has devised a prudent strategy to maintain returns to shareholders during the shift, including restructuring Dusit Thani to allow for greater flexibility and enhanced business performance, according to group chief executive Suphajee Suthumpun.
"Although there was a decrease in revenue from our hotel business, for example, this was countered by revenue generated from the restructuring of our business and the income from long-term investments, which has made our overall operations more stable and resilient," Ms Suphajee said. "Following our strategy for diversification, we have also started expanding into new lines of business, such as entering the food industry through our investment in NR Instant Produce, and the share of profit in this area has now started to be realised. We plan to explore more investment opportunities as we continue growing our core business worldwide."
Dusit Thani International has 27 hotels and resorts in operation and more than 50 properties in the pipeline. At least 10 hotels are expected to open over the next 12 months under the management of Dusit Thani across Vietnam, Singapore, Bhutan, the Philippines, Bahrain and China.
The company also operates Devarana Spa, as well as a fast-growing education division, which includes Dusit Thani College, offering vocational and postgraduate hospitality degrees at campuses in Bangkok and Pattaya, and Le Cordon Bleu Dusit Culinary School.
Last week, the company notified the Stock Exchange of Thailand about the establishment of two new subsidiaries in Japan: Dusit Thani Kabushiki Kaisa, with the objective to carry out investment in hotels, serviced apartments, and spa and club; and Dusit Ippan Shadan Houjin Japan, a holding company.
In 2017, the company announced a partnership with Central Pattana to develop a mixed-use project worth 36.7 billion baht on a plot at the intersection of Silom and Rama IV roads, site of the soon-to-be-demolished Dusit Thani Bangkok hotel.
DTC shares closed yesterday on the SET at 12.10 baht, unchanged, in trade worth 5.49 million baht.