Asiatravel.com (5AM.SG) off 5.6% at $0.425 after its FY10 net profit comes in 64% lower at $2.06 million, despite revenue +17% at $83.9 million.
Kim Eng says results below expectations; "the disappointing performance was due to higher operating expenses arising from aggressive launches of new products and sales channels. Consequently, no final dividend was declared and full-year total dividend was 0.6 cents per share."
Asiatravel.com, the pan-Asia online travel and hotel reservation service provider with network of offices in 8 countries, says it has launched the Asiatravel Cash Reward Program today to reward loyal customers and to encourage repeat bookings. Customers booking on behalf of others will also enjoy the cash reward.
Instead of redeeming points for products on the next purchase, Asiatravel.com says its reward programme credits cash directly to the customer.
Kim Eng Securities cuts Asiatravel.com Holdings (5AM.SG) to Hold from Buy, new target price lowered to $0.53 from $0.62, after online ticketing company reports 56% fall in 3Q net profit, missing expectations, on higher start-up costs, says Dow Jones.
Kim Eng points to slower revenue recovery in 3Q from key markets such as Thailand, Dubai.
Asiatravel.com Holdings, the pan-Asia online travel and hotel reservation service provider, posted a net profit of $1 million for its 1QFY2010 ended 31 December 2009, a drop of 21.8% on-year. Revenue fell 6.5% to $18.9 million from $20.2 million.
Asiatravel.com says although the economic recovery is moderating the decline in average hotel room rates in 1QFY2010 compared to the rates in the last two quarters of FY2009, the average room rates are still about 15% below those of 1Q FY2009.
Asiatravel.com Holdings says it has entered into an agreement with Resorts World Sentosa to provide accommodation, transportation and sales support for visitors to RWS and its Universal Studios theme park when it starts operations.
Together with Resorts World Sentosa, and its hotel and airline partners, Asiatravel.com is putting together affordable packages comprising Universal Studio ticket, hotel accommodation, and air and land transportation, to attract a wide range of visitors to the resort.
The following companies may have unusual price changes in trading today, say Thomson Reuters and Bloomberg. Share prices are from the previous close. Singapore’s Straits Times Index dropped 1.1% to 2,762.22 last Rhursday. The market was shut for a public holiday last Friday.
DBS Group Holdings (DBSM.SI) owns 50% of tiny Islamic Bank of Asia, which focuses on wholesale commercial banking, corporate finance, capital markets and wealth management services in the Middle East and Asia from its offices in Singapore and Bahrain. DBS also has a branch in Dubai. DBS, 28% owned by state investor Temasek (TEM.UL), derives the bulk of its revenue from Singapore and Hong Kong. But in its earnings statement for the second quarter ended June 2009, it blamed an increase in non-performing loans to “exposures to shipping and Middle East corporates and institutions”.
Asiatravel.com Holdings, the regional online travel and hotel reservation service provider, posted a net profit attributable to shareholders of $5.5 million for its FY2009 results ended Sept 30, 2009, an improvement of 0.7% over that in FY2008.
Revenue for the full year rose 4.3% to $89.4 million from $85.7 million.
