Press release 19/05/2008
Annual Analysts and Investors’ Report
On the financial statements of Astir Palace Vouliagmeni SA for the financial year 2007
Ladies and Gentlemen,
We present the 2007 full year financial results and investment plan developments, as well as an update on the Company’s current and future development plans.
Financial results & investment plan development
The 2007 financial year was characterized by further investments in the complex infrastructure and human resources at Astir Palace Vouliagmeni SA. It should be noted that revenues and net results improved, despite the closure of the hotel «Aphroditi» for the duration of 2007.
Hotel business management by Starwood Hotels & Resorts Worldwide Inc. resulted in an increase of total overnight stays, occupancy rates and revenue per available room at «Arion Resort & SPA» and «The Westin Athens». Overnight stays for the year rose to 67.951 compared to 49.265 in 2006, while occupancy rates posted a 16 percent year on year increase and revenue per available room rose by 33 percent compared to 2006.
Company revenues increased 3.2 percent year on year to €26.8 million, supported largely by room revenues and to a lesser extent by beach ticket and food and beverage revenues. Room revenues for 2007 rose to €14.890 thousand from €13.996 thousand in 2006, beach ticket revenues increased to €1.599 thousand against €1.589 thousand in 2006, and food and beverage revenues grew to €10.015 thousand from €9.979 thousand the previous year. Hotel «Aphroditi», which remained closed in 2007, had assisted 2006 revenues by €4.030 thousand.
Earnings before tax, interest and depreciation for 2007 amounted to a loss of €2.5 million, a remarkable 78 percent year on year improvement from the €10.9 million loss posted in 2006. Full year net loss decreased to €9.9 million from a loss of €13.2 million in 2006. In accordance with the Company’s new commercial policy effective from 2007, both «Arion Resort & SPA» and «The Westin Athens» remained in full operation during the winter months.
In 2007, the Company invested in a voluntary retirement scheme of 81 participating employees, as well as in a voluntary departure scheme from the Company’s group insurance scheme with the National Insurance Company of 42 participating employees. These schemes were successfully concluded and the respective costs of €1.471 thousand and €820 thousand were included as reorganization costs.
In 2007, fixed assets additions relating to the Company’s investment scheme amounted to €11.1 million.
Company assets increased due to the above mentioned investments, deferred tax assets recognized on tax losses and cash and cash equivalents.
Cash out-flows relating to investments and reorganization costs resulted in a 35 percent year on year increase in borrowings to €67.4 million, as well as in increased financial expenditure and liabilities.
Development Plans
Projects due for completion within schedule include the full renovation of the bungalows, the luxury restaurant «CLUB HOUSE», the public beach «ASTIR BEACH» and the renovation of the entrance of “The Westin Athens”. The new infrastructure is in line with our strategic plans and commercial policy and will result in significant benefits in 2008, including aiding Company competitiveness.
At the same time, the renovation of hotel «Aphroditi», which began in 2007, is in progress and the Company is currently conducting studies for the creation of a new conference centre.
Athens 19 May 2008
THE CHAIRMAN OF THE BORD
EFSTRATIOS GEORGIOS ARAPOGLOU
