Q3 FY 2018/19 Earnings Update February 2019
Jetwing Symphony’s operating portfolio for Q3FY19 Jetwing Jetwing Surf Jetwing Colombo Jetwing Yala Jetwing Lake Kaduruketha (Pottuvil Point) Seven (Yala) (Dambulla) (Wellawaya) (Colombo) The first agro luxury The first high end The group’s first luxury A luxurious resort A luxurious resort set in eco tourism hotel in Sri resort in Pottuvil Point hotel in the commercial offering a wilderness the center of centuries Lanka offering their constructed with a capital offering an experience by the of ancient Sri Lankan guests unique minimum carbon urban resort experience beach history experiences footprint in the city Rooms : 94 Rooms : 25 Rooms : 20 Rooms : 98 Rooms : 90 Occupancy : 60% Occupancy : 36% Occupancy : 19% Occupancy : 65% Occupancy : 63% ARR : 13,786 ARR : 22,759 ARR : 16,345 ARR : 14,162 ARR : 19,676 2
Our key performance highlights Group highlights Q3FY19 Revenue EBIT LKR 484Mn (+37%) LKR 82Mn (+3,479%) Jetwing Lake and Yala recorded a LKR c.53mn (+71% QoQ) and LKR c.44mn (+36% QoQ) Significant improvements in ARR and overall increase in hotel revenue, respectively, which occupancy has resulted in the Group making greatly contributed to a QoQ group revenue improvements in profits at the EBIT level growth of 37% EBITDA Occupancy LKR 164Mn (+101%) c. 58% (+5%) EBITDA margins improved from 23% to 34% The Group reported an occupancy of c. 58% as a result of better management of hotel with Jetwing Lake and Jetwing Yala recording operating expenses higher QoQ occupancy rates 3
Jetwing Symphony performance remained robust amidst challenges faced by the industry due to political uncertainties Q3 Q3 9M 9M FY 19 IPO LKR Mn QoQ YoY FY18 FY19 FY18 FY19 Forecast ** The Group revenue grew by 37% • whilst EBITDA and EBIT recorded Revenue 2,354 355 484 37% 1,004 1,303 30% growth of 101% and 3,479% respectively, over the last Gross Profit 1,909 290 404 40% 814 1,085 33% corresponding quarter EBITDA 778 82 164 101% 213 406 91% The main contributors to • EBIT 2 82 3,479% (23) 160 790% 375 Revenue were Jetwing Lake, Jetwing Colombo Seven and PAT* (104) (32) 69% (337) (170) 50% (78) Jetwing Yala , making up over 85% PAT (107) (131) -22% (346) (370) -7% (100) of the group Revenue 69% improvement in the GP Margin • 82% 84% 81% 83% recurring profit after tax (i.e. EBITDA Margin 23% 34% 21% 31% excluding forex losses), testament to management’s commitment EBIT Margin 1% 17% -2% 12% towards achieving steady bottom- line growth, leveraging on the NP Margin -30% -27% -34% -28% Jetwing brand Gearing Ratio 44% 47% 44% 47% * Excludes foreign exchange conversion gains/losses ** Full Financial Year Forecast. Source: Jetwing Symphony IPO Prospectus – Independent Valuation Report 4
Revenue growth of c.37% coupled with effective control of operational costs translated to EBITDA margin improving from 23% to 34% Revenue (LKR Mn) EBITDA (LKR Mn) 1,400 480 30% 1,200 91% 380 Jetwing Surf 1,000 Jetwing Lake 800 280 37% 101% Jetwing Yala 600 180 400 Jetwing Colombo Seven 80 200 Jetwing Kaduruketha - (20) Q3FY18 Q3FY19 9MFY18 9MFY19 Q3FY18 Q3FY19 9MFY18 9MFY19 Revenue Composition Jetwing Yala, Jetwing Colombo Seven and Jetwing Lake were the • top revenue contributors for the quarter, with a contribution of 34%, 2.6% 3.8% 30% and 24% respectively to the Group’s revenue Rooms FY2018 3.2% All properties recorded significantly higher ARRs than the last Food and • 3.1% Beverages corresponding quarter 33.8% Banquet 56.2% 37.5% The Company's efforts to enhance its cost structures by managing 59.8% • Spa and Other FY2019 operating expenses have allowed them to make significant savings Income thereby improving EBITDA by 101% 5
OUR OPERATIONAL HOTEL PERFORMANCE
Jetwing Yala: positive PAT for the quarter driven by an increase in the ARR, occupancy and operating efficiencies 40 80% ARR in LKR Thousands 35 70% Q3 Q3 9M 9M LKR Mn QoQ YoY 30 60% FY18 FY19 FY18 FY19 25 50% Revenue 125 169 36% 385 442 15% 20 40% 37 Gross Profit 101 139 38% 311 359 16% 36 15 30% 19 EBITDA 37 63 70% 115 142 23% 10 20% EBIT 16 42 164% 52 80 55% 15 5 10% PAT* 0 0% (2) 24 1,656% 0 27 7,132% Q3FY18 Q3FY19 PAT (2) 6 358% (4) (13) -264% ARR - Hotel ARR - Safari Camp GP Margin 81% 82% 81% 81% Occupancy - Hotel Occupancy - Safari Camp EBITDA Margin 30% 37% 30% 32% 4.6% FY2018 EBIT Margin 13% 25% 14% 18% 3.7% NP Margin -2% 3% -1% -3% FY2019 35.2% 39.6% * Excludes foreign exchange conversion gains/losses 56.7% 60.2% EBITDA margin improved from 30% to 37% , mainly driven by a QoQ revenue growth of • 36% Increase in occupancy and Hotel ARR resulted in a RevPAR of LKR 12,305 which was a • QoQ improvement of 44% 7 Rooms Food and Beverages Spa and Other Income
Jetwing Kaduruketha: significant boost to profitability margins with management continuing to focus on ARR, convinced by the hotel’s niche positioning 25 40% ARR in LKR Thousands Q3 Q3 9M 9M LKR Mn QoQ YoY 20 38% FY18 FY19 FY18 FY19 Revenue 21 28 34% 54 80 48% 15 36% 23 Gross Profit 17 24 42% 44 69 58% 10 34% EBITDA 2 5 110% 2 15 854% 5 12 32% EBIT (2) 0 120% (10) 2 124% 0 30% PAT* (9) (4) 59% (33) (9) 71% Q3FY18 Q3FY19 PAT (9) (8) 20% (33) (17) 49% Total ARR Total Occupancy GP Margin 82% 87% 81% 86% EBITDA Margin 11% 17% 3% 19% FY2018 3.2% EBIT Margin -8% 1% -19% 3% 5.4% NP Margin -45% -27% -61% -21% FY2019 30.7% 52.3% * Excludes foreign exchange conversion gains/losses 42.3% 66.1% Increase in the ARR , as the hotel continues to position as an agro eco-luxury resort, • resulted in a positive EBITDA despite an occupation drop from 38% to 36% A 34% revenue growth , in tandem with efficient control of food and beverage costs • resulted in the Gross Profit margin increasing from 82% to 87% 8 Rooms Food and Beverages Spa and Other Income
Jetwing Lake: increase in both the occupancy rate and ARR resulted in a 4.8 times increase in QoQ EBITDA 16 70% ARR in LKR Thousands 14 65% Q3 Q3 9M 9M LKR Mn QoQ YoY FY18 FY19 FY18 FY19 12 60% 10 Revenue 75 128 71% 206 313 52% 55% 14 8 Gross Profit 59 105 77% 156 254 63% 50% 6 EBITDA 7 43 479% 6 83 1,363% 45% 4 9 40% EBIT (17) 19 214% (66) 12 118% 2 0 35% PAT* (57) (22) 61% (185) (102) 45% Q3FY18 Q3FY19 PAT (58) (35) 39% (186) (129) 31% Total ARR Total Occupancy GP Margin 79% 82% 76% 81% 2.8% EBITDA Margin 10% 33% 3% 26% FY2018 EBIT Margin -22% 15% -32% 4% 2.0% NP Margin -78% -28% -90% -41% FY2019 48.2% * Excludes foreign exchange conversion gains/losses 41.1% 49.8% Room occupation increased from 48% to 60%, and ARR increased by 59% in Q3FY19 56.1% • which resulted in a RevPAR of LKR 8,327, a QoQ improvement of 99% Jetwing Lake recorded a positive EBIT , despite sharp finance expenses and foreign • exchange losses having a detrimental effect on the PAT 9 Rooms Food and Beverages Spa and Other Income
Jetwing Colombo Seven: 12% increase in revenue converted to a 50% EBITDA growth driven by improving ARRs 18 80% ARR in LKR Thousands 16 75% Q3 Q3 9M 9M LKR Mn QoQ YoY 14 70% FY18 FY19 FY18 FY19 12 65% Revenue 131 147 12% 357 385 8% 10 60% 14 Gross Profit 109 126 16% 294 327 11% 8 16 55% 6 12 EBITDA 41 62 50% 101 144 43% 12 50% 4 EBIT 11 33 186% 13 57 341% 45% 2 PAT* (30) (15) 50% (111) (77) 30% 0 40% Q3FY18 Q3FY19 PAT (30) (76) -149% (114) (197) -72% ARR - Deluxe Rooms ARR - Apartments GP Margin 83% 86% 82% 85% Occupancy - Deluxe Rooms Occupancy - Apartments 3.8% EBITDA Margin 31% 42% 28% 38% FY2018 8.8% EBIT Margin 9% 22% 4% 15% 8.2% 3.0% NP Margin -23% -51% -32% -51% FY2019 * Excludes foreign exchange conversion gains/losses 25.7% 61.7% 27.7% Room, food and other hotel operational costs dropped significantly without • 61.1% compromising on the services offered, due to effective use of resources Drop in occupancy due to a reduction in the number of Travel Agency bookings and • Free Independent Tourists bookings as a result of the island’s political situation during the last quarter Rooms Food and Beverages Banquet Spa and Other Income 10
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