Bulgaria's Sofia Hotel Balkan 9-mo cons net profit shrinks on higher expenses

The company’s overall revenue rose to 27.4 million levs in the period under review from slightly over 25 million levs in January-September of 2022, Sofia Hotel Balkan said in an interim financial statement.

Growth was driven by income from overnight stays, which rose to 16.7 million levs from 15.4 million levs. At the same time, income from restaurant services went up to 9.3 million levs from 6.7 million levs. Income from government financing was slashed to 14,000 levs to end-September from 1.05 million levs in the prior-year period.

The group’s operating expenses widened to 26.5 million levs in the nine months through September from 22.5 million levs a year earlier due to higher costs for materials and salaries.

Business revenue at Sofia Hotel Balkan, which operates an eponymous five-star hotel in central Sofia, has been negatively affected by the growing influence of competitors, especially in the five-star hotel segment in Sofia, the company noted. Another contributing factor is the rapid entry of new four-star hotels, taking away a portion of customers. To minimise this risk, the group's management is actively working to increase market share and diversify and update product offerings.

At the end of September, Sofia Hotel Balkan's assets amounted to 181.7 million levs, slightly up from 180.6 million levs in the previous period.

Shares in Sofia Hotel Balkan last closed at 45.00 levs on the BaSE market of the Bulgarian Stock Exchange on Thursday, bourse data showed.

(1 euro = 1.95583 levs)