Corporate News
TPS Eastern Africa's Mara Serena Safari Lodge in the Narok County. PHOTO | FILE
By BD REPORTER
In Summary
- TPS Eastern Africa recorded a net profit of Sh274.4 million in the period compared to Sh451 million the year before.
- The performance came as sales declined seven per cent to Sh6.3 billion in what the firm attributed to several problems facing the tourism industry.
- The company has declared a dividend of Sh1.35, same as for the previous year.
TPS Eastern Africa,
the operator of Serena brand of hotels, posted a 39.2 per cent profit
decline in the year ended December driven by lower sales and higher
expenses.
It made a net profit of Sh274.4 million in the period
compared to Sh451 million the year before. The company has declared a
dividend of Sh1.35, same as for the previous year.
“It will be noted that, despite challenging
business conditions, the company proposes to maintain the same level of
dividend payment in line with the previous year,” TPS said in a
statement.
The performance came as sales declined seven per
cent to Sh6.3 billion in what the firm attributed to several problems
facing the tourism industry.
TPS said a series of travel advisories, terrorist
attacks and the introduction of value added tax on tourism services have
continued to “make destination Kenya uncompetitive relative to the
other safari destinations.”
Other negative factors are the Ebola outbreak that
has hurt African tourist destinations in general, the company said. Its
share price has dropped 11.4 per cent over the past six months to trade
at Sh34.7.
Kenya’s beach tourism has been particularly hurt by
rising insecurity in the country, with the low business seen spilling
over to this year.
“The Kenyan Coast is experiencing an unprecedented
business crisis and unfortunately, most of the setbacks continue to
negatively impact foreign leisure business levels in 2015,” TPS said.
The terrorist attacks and travel advisories from
key source markets like Europe have seen the cancellation of charter
flights to Kenya, significantly hurting leisure tourism.
TPS said it will this year begin extension and
refurbishment projects at Nairobi Serena Hotel, Kampala Serena Hotel,
and Dar es Salaam Serena Hotel.
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