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Mauritius' Sun Resorts sinks to 9-month loss

Published 11/15/2010, 03:33 AM
Updated 11/15/2010, 03:36 AM

* Posts a 92.7 million rupee loss vs 85.1 million profit last year

* Revenues fall 15.3 percent to 2.1 bln rupees

* EPS falls to -0.58 vs 0.88

PORT LOUIS, Nov 15 (Reuters) - Mauritius luxury hotel group Sun Resorts sank to a nine-month loss for the period ended September 30, stung by a strong rupee and aggressive price discounting across the sector, the firm said on Monday.

The group posted a 92.66 million rupee ($3.1 million) loss for the first three quarters of the year compared with a 85.09 million rupee profit in the year ago period.

Earnings per share fell to -0.58 rupees compared with 0.88 a year ago. At 0735 GMT, Sun Resorts' share price was unchanged on Friday's closing price of 57.00 rupees.

"Trading conditions remain challenging as the market is still in a transition period, characterised by last minute bookings, over-supply of rooms and appetite for promotional packages," the group said in a financial statement.

Mauritius's tourism sector, a key driver of the economy and important source of foreign exchange, has suffered at the hands of a slower than expected recovery in its core European markets.

Sun Resorts said the third quarter, during which it made a pretax loss of 161.30 million rupees, was particularly challenging.

The rupee appreciated 13 percent and 9 percent against the euro and pound sterling respectively compared with the corresponding period last year, representing a shortfall of 29 million rupees for the quarter.

The group said fourth-quarter bookings for four star resorts were strong but noted a slower trend for the upmarket resorts.

"We therefore expect results for the last quarter to be close to the same quarter of last year." ($1=29.95 Mauritius Rupee) (Reporting by Jean Paul Arouff; Editing by Richard Lough and Jon Loades-Carter)

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