The Eden Leisure Group and Eden Finance plc have reported revenue in excess of €23 million and a consolidated EBITDA of €5.5 million during 2008.
Speaking at a meeting with stockbrokers and financial institutions, group chairman Ian De Cesare said the InterContinental Hotel, the group’s largest single contributor, continued to be profitable but revenue and profit for the largest hotel in Malta fell when compared to 2007.
Revenue for the hotel dropped by 11% due to many external factors including a 21 % increase in 5 star rooms, the international economic climate and the reduced value of the sterling, which was having an overall negative outcome on the tourism sector globally and Malta in particular.
During this slump in tourism, the InterContinental Malta, this winter, took the opportunity to invest in a planned €1 million refurbishment program of 110 Club rooms funded through existing cash flows in anticipation of the upturn in tourism, Mr De Cesare said.
The group’s entertainment business continued to grow throughout the year yielding a 7.6% increase in turnover for the year as well as an 8.5% increase in Income before Fixed Charges.
Mr De Cesare said that these results were particularly encouraging considering the economic climate in Malta and abroad and given the challenges being faced by the entertainment segment including the large increases in costs attributable to energy, as well as the continued issue of piracy affecting the cinema industry.
The group’s debt was comfortably serviced for the year and in conjunction with its bankers, the Eden Leisure Group had embarked on a refinancing programme in anticipation of the publically listed bond which are due for redemption in 2010.
Mr De Cesare said that while the prospects in tourism for this year were not positive, the group’s entertainment arm was expected to continue to grow. The group’s strategy of diversifying its portfolios of strategic business units was paying off, particularly during such times of international instability, and this had placed the Eden Leisure Group in a strong position for the future, he said.