March 30 (SeeNews) - Croatia's Arena Hospitality Group [ZSE:ARNT] said its management is considering postponing a decision to pay out dividend for 2019 as a means of enhancing its financial flexibility amid the coronavirus crisis.
"The group is in the process of adopting a set of exceptional operational measures in order to reduce its costs and help it navigate through these challenging and unprecedented times whilst keeping the company lean. These measures include steps to effectively manage its payroll costs and reduce other costs and expenses across the business," Arena Hospitality said in a statement with the Zagreb bourse on Friday.
Last year, the company retained its entire 66.6 million euro ($9.7 million/8.7 million euro) net profit reported for 2018, but distributed a dividend of 5 kuna per share from part of its 2017 retained profit.
Arena Hospitality also said that its Croatian operations are usually closed at this time of the year, apart from one or two assets that work throughout the year. However, at the moment all its hotels, self-catering apartment complexes and campsites in Croatia are closed.
It added that its hotels in Germany and Hungary that usually operate throughout the year have reduced their operations.
At the same time, Arena Hospitality pointed out that the second investment phase in Arena Kazela Campsite, located on the Istrian peninsula in Croatia, and the investment in the self-catering apartment resort Verudela Beach Pula, also in Istria, are proceeding as planned and are close to completion.
"The group is reconsidering other previously announced investments pending the evolvement of the currently uncertain situation around the COVID-19 pandemic," the statement read.
Arena Hospitality also noted that its financial and liquidity position is robust, with the group maintaining excess cash of more than 600 million kuna as of March 26.
Arena Hospitality Group has a portfolio of 26 owned, co-owned, leased and managed properties with more than 10,000 rooms and accommodation units in Croatia, Germany and Hungary, it says on its website.
It reported earlier that its consolidated net profit rose to 149 million kuna in 2019, from 89 million kuna in 2018.
Arena Hospitality's shares traded unchanged at 210 kuna by 09:35 CET on Monday on the Zagreb bourse.
(1 euro = 7.61518 kuna)