Economic difficulties and a decline in income for workers - the main customers of Dam Sen Park - caused Phu Tho Tourist to report a loss of nearly 3 billion VND in the third quarter.
Revenue of Phu Tho Tourist Service Joint Stock Company (Phu Tho Tourist - DSP), the owner of Dam Sen Park, reached more than 60 billion VND. Although it was the fourth consecutive quarter of improved revenue, this figure was still 13.5% lower than the same period last year. Cost of goods sold decreased more slowly, the company suffered a gross loss of nearly 6 billion VND, while in the same period last year it still recorded a positive gross profit of 1.5 billion VND.
Similar to the previous two quarters, financial revenue in the third quarter increased by nearly half compared to the same period, reaching nearly VND13 billion. Of which, DSP earned more than VND32.3 billion in interest from deposits and loans. In addition, this enterprise also received nearly VND12 billion in dividends and distributed profits.
After deducting expenses, Phu Tho Tourist lost about 2.6 billion VND, while in the same period last year, its profit was still positive at nearly 200 million VND. Thus, after reaching an 8-year record profit in the second quarter, the company returned to operating at a loss.
The management explained that the main reason was that the domestic economy was facing many difficulties, affecting the lives and incomes of people, especially workers in industrial parks and export processing zones - the company's important customers for many years. Meanwhile, during the same period, people were in a relaxed mood to have fun after a long period of social distancing, helping entertainment areas in general to recover strongly.
In the first 9 months of the year, DSP had a revenue of more than 175 billion VND, a slight decrease compared to the same period last year. After-tax profit reached more than 18 billion VND, avoiding a loss of more than 19 billion VND in the first three quarters of last year. Compared to the whole year plan, Phu Tho Tourist completed about two-thirds of the revenue target and exceeded the profit target by more than 6 times.
A newly renovated thrill ride at Dam Sen Park, July 2023. Photo: DSP
Phu Tho Tourist manages and operates four business units including: Dam Sen Cultural Park, Ngoc Lan - Phu Tho hotel cluster, Dam Sen Tourist Service Center and Vam Sat mangrove eco-tourism area. Of which, Dam Sen Park was established in 1999, attracting a large number of tourists for many years.
The company also participates in the association at Dam Sen Water Park Joint Stock Company (in charge of investing in exploiting water entertainment games) and makes financial investments in two hotels including Saigon - Da Lat (Lam Dong) and Saigon - Dong Ha (Quang Tri).
In the annual meeting document at the end of March, Phu Tho Tourist's board of directors assessed that the old Dam Sen Park was less attractive to young people, leading to a loss of competitive advantage. Currently, this park accounts for 80% of Phu Tho Tourist's revenue and profit. Therefore, the board of directors of this enterprise identified innovation and redevelopment of service types as one of the main tasks this year.
Recently, the parent company has focused resources on organizing events and reduced the dividend payout ratio to invest in building new and renovating entertainment facilities at Dam Sen Park. According to the plan, DSP will spend VND2.8 billion to organize 9 major events in the last quarter of the year on Halloween, Vietnamese Teachers' Day and Christmas. The company expects to welcome nearly 689,000 visitors by the end of this year, an increase of more than 10% compared to last year.
Siddhartha
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