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CEO on Orbis's revenues
Gilles Clavie
Listed hotel group Orbis, a unit of France's Accor, posted an attributable net profit of PLN 219.3 million in Q2, below the consensus expectations for a PLN 238.5 million profit, Q2 consolidated financial report showed.
Group's results were positively impacted by one-offs in the total size of PLN 129.5 million, including the PLN 126.2 mlillion profit on the sale of Sofitel Budapest Chain Bridge hotel as well as PLN 2.2 million take from sale of Novotel Szeged hotel, the management comment stated.
The "good" H1 results come on the back of a 5.2% LfL increase in the average room rate (ARR) and a strong growth of the revenues per available room index (RevPAR) on the group's key markets: Poland, Hungary and the Czech Republic, CEO Gilles Clavie wrote in a comment accompanying the results. At the same time, the results are under the pressure of rising labor costs felt across the region, which makes the company focus on efforts towards maximisation of sales revenues, the CEO added.
H1 operating costs rose 1.6% y/y in H1, with the biggest increase reported in employee-related costs, such as wage and performance-based bonus hikes, as well as costs connected with staff turnover, the management also said.
Among the factors that will negatively influence the group's H2 performance, lack of qualified labor is seen as a significant factor. At the same time, noticeable wealth increase across the region translating into greater consumer purchasing power and attractiveness of CEE destinations for tourists are expected to benefit the group, the management observed.